How Your Money Personality Affects Financial Wellness
Money makes the world go round, and it can sometimes make your head spin. Because money is needed to survive, it can sometimes lead to stress. But it doesn’t have to be that way. With the right financial wellness mindset, you can achieve financial independence and happiness without descending down a mountain of anxiety.
What Is Financial Wellness? In short, it’s the concept of effectively managing your economic life. If you struggle with money and worry about your financial future, then you might not be considered financially well.
Individuals who have a healthy financial mindset tend to live within their means while investing in their future. They have enough money set aside to deal with an unexpected emergency. People spend and save in a variety of ways, but most tend to fall within one of seven money personality types that affect their financial decisions. By uncovering your money personality type, you’ll be prepared to make wiser financial decision.
What Money Personality Are You?
Worrier—if you are constantly anxious about money, this could be you. While this trait may cause you to avoid making frivolous purchases, you can lose hope and abandon financial goals altogether. If you fall into this money type, try thinking about your spending and saving habits with a more positive outlook.
Compulsive Saver—you know the ones, they stash money away whenever they can. They’re usually very prepared when an emergency strikes. If this is you, simply saving money isn’t the most optimal solution. You may miss out on solid investment opportunities or avoid spending on life events or hobbies due to the cost.
Aloof—Managing money can be so stressful that some people avoid thinking about finances altogether. This is not a good way to ensure financial stability as your finances will not disappear. If this is your money personality, uncover and address the reasons for averting sound spending and saving habits.
Compulsive Spender—Whether you spend money all day at the store or online, compulsive spenders can’t seem to stop themselves. It’s okay to treat yourself now and then, but use caution. It would be wise to develop a realistic budget and to consider whether or not you actually do need that item prior to checking out.
Gambler—they like to go big or go home. They invest in the latest cryptocurrency, or they might put their life savings towards a questionable startup. A little risk is fine, but if you’re a gambler, it would be wise to take only financial risks when you can afford to lose every cent that you invest.
Saver-Splurger—if you fall into this category, you may find yourself compulsively saving money for long periods, then spending huge chunks of your savings on a few large and unnecessary purchases. Saver-splurgers may feel like their saving habits justify their spending habits, but they’re really just indulging in two extremes.
Compulsive Moneymaker—they spend most of their time working, investing, and researching the most optimal ways to make the most amount of money. They often enjoy healthy bank accounts, but this is often at the expense of their health, happiness, and interpersonal relationships. If you fall into this category . . .step back, relax, and find another hobby or activity that makes you happy.
Understanding your money personality—your spending and saving habits—can make the world of difference with your daily outlook. If you want to reach financial freedom and overcoming your anxieties about money, the NIHFCU team, online tools, and financial webinars are all ready to help you achieve your financial freedom and goals.