For example, an energetic extrovert can be well balanced by someone quieter and calmer in temperament. So, what happens when you’re in a relationship with someone who has a completely different view when it comes to money?
First, let’s look at some money ‘types’;
Not surprisingly, people often fall into more than one category but generally, one behavioural type will tend to be dominant.
Savers are all about getting the best value for every dollar spent. They’ll happily shop around, comparing prices to find the best deal. They don’t part with their money easily and are more likely to reach for the calculator at a group dinner to determine their appropriate contribution.
Pros – They tend to be resourceful and practical
Cons – They may be perceived by others as being ‘cheap’
Unlike Savers, those in this category have no problem parting with their money. They like spending money on experiences and items that bring them joy. They’re also more likely to live beyond their means. They can be very spontaneous decision makers when it comes to spending.
Pros – They are generous with their friends and more likely to willingly support charitable causes
Cons – There’s rarely money left for a rainy day
For those risk-averse personalities, money is all about security. People in this category prefer safe investments and will be thorough in their research prior to investing. Financial stability matters.
Pros – they are likely to be financially stable throughout their lives
Cons – A more conservative, risk averse approach may hold people back from worthwhile opportunities to grow their money
The Avoider could be considered an extreme version of someone risk-averse. For Avoiders money is associated with fear and anxiety. Avoiders worry constantly about overdrafts or excessive credit card spending.
Pros – They’re unlikely to ever find themselves in debt
Cons – They may avoid spending money on even the most necessary things. They may also self-sabotage their financial success
This self-explanatory category is for thrill seekers, where huge risks can potentially bring about huge rewards. Those that best identify with this type are instinct driven. They are unlikely to pay much attention to sound financial advice. Facts and figures won’t hold sway either.
Pros – They’re optimistic and put themselves in a position to win big
Cons – They’re genuinely willing to lose it all – a scary thought in a household should that person also be the primary breadwinner
Worshippers mistakenly believe that money is the answer to all their problems. Like Gamblers they are risk-takers. They may be over spenders or compulsive buyers. Worshippers tend to overwork too and often assume a higher income or financial windfall will make them happier.
The Status Symbol associates self-worth with net-worth. This type shares some traits with The Worshipper. They show competitive spending traits. The downside of aligning money with status is that it’s very unhealthy for your well-being.
Pros – They’ll surround themselves with beautiful (albeit material) things such as gorgeous homes and nice cars
Cons – Assuming money equates to happiness is likely to end in disappointment. And always trying to ‘keep up with the Jones’s’ must be exhausting!
The Guarded describes those who are very secretive about their money, even to the point of paranoia. Those who best identify in this category may be excessively frugal or prone to hoarding cash.
Pros – It’s hard to determine a plus side to such intense secrecy but at least there’s money available…unlike The Spender who might be living entirely on credit!
Cons – They’re not allowing their money to work for them. By sharing their secrets with someone knowledgeable (and trusted) they could be building their wealth
Flyers hardly think about money. For them, money is not linked to status or security. They may consider those who give money matters a lot of thought (i.e. the Savers or Risk-Averse) obsessive. Having a thriving bank balance or conversely, one with just double digits, is neither here nor there. They feel liberated by this approach and happily choose not to be guided by the same practicalities as the rest of us.
Pros – They have a healthy self-worth not linked to financial worth
Cons – As per The Guarded, in paying little attention to their money, it’s not structured to grow for them or protect them in any way
We credit the following articles as original source material from which this article was developed