We have reviewed a lot of money personality research and when it all boils down to it this is a good, succinct (but maybe an oversimplified) summary of 4 money personalities:
- Dreamers, and
Wait for it - let me explain even though one of these categories maybe resonating with you...
I hardly ever have the tele on but nursing my sick Missy dog on one particular morning - the tele sound was in the background (I think it was Sunrise Summer Extra showing). There was a short money segment on and my ears pricked up as it was about Money Personalities. Now, whilst I had used the terms "Spenders" and "Savers" with clients for decades - I hadn't really heard of the "Dreamers" and "Stashers".
I think it goes without saying we know what a "Spender's" relationship with money would look like..it is completely opposite to that of a "Saver" who is far more disciplined and puts money away for a rainy day. Any "Spenders" I have come across are fun and generous people and "Savers" are well a little more serious and far more cautious embracing the concept of delayed gratification.
"Dreamers are typically younger people who feel they have plenty of time to make money and spend money". Having said that, I met a few older people in my time who have an interesting take on their financial reality. These personalities are usually hanging out to win lotto, or to inherit, things will be fine and they don't feel they need to put in place too much financial structure, they are averse to planning.
If you have a "Stasher" money personality, you tend to only put money away for the sake of accumulating and now how much a Financial Advisers tells you and demonstrates that you will never run out of money - you love the idea of watching it accumulate, risking not spending enough to enjoy the fruits of your labour in your lifetime.
Can you identify which money personality you are? Are you more naturally like a Spender, Saver, Dreamer or Stasher from the description above?
Having consulted with thousands of people over my professional career - when couples present they are rarely the same money personality...this always makes for interesting discussion to understand their past decisions around money and what they are willing to trade off in order to achieve future financial security.
Unless we reflect and assess how our money personality is affecting our decisions we have less awareness of how it may be impacting others and less likelihood of being able to find a middle ground…of course, we are always here to help as your Financial Planners.
CFP®, BA (Hons), Dip FP, Tax (financial) Adviser 24804732
Director & Principal Financial Adviser Authorised Representative (235917)
of Unified Financial Services Pty Ltd AFSL 230510