Saver, spender, sharer, investor, or gambler: What’s your money personality type?

Self-awareness is a wonderful thing. When you know yourself, you’re more likely to make choices that bring you positive results—and that includes making decisions about your money. We each have a money personality type that influences how we feel about money and how we manage it.

By getting a handle on your financial personality, you can better understand why you’ve made some of your money mistakes and work to make choices that will help you reach short-term and long-term goals.

Saver

We’re used to the saving-versus-spending debate, but it’s important to drill down a little more to get at the advantages and pitfalls of being a saver.

Signs of a saver

• You believe that building your savings is the best way to feel secure over time.
• Frugality is your primary concern, and you often look for the cheapest item, regardless of quality.
• You’re concerned with setting money aside regularly for the sake of building savings, even if there isn’t a specific goal for the money.
• You worry that spending any amount will lead to financial instability or that you won’t have resources in an emergency.

Pros and cons of being a saver

How to adjust your habits as a saver

If you’re concerned that your tightfisted tendencies are holding you back, there are some steps you can take to improve your habits and work toward your financial goals.

• Give your money a purpose. Set specific financial goals. Consider using subaccounts for vacations, eating out, gifts, large purchases, and emergency funds. By getting in the mindset that you will use the money for specific expenses, you’re likely to feel better about spending.
• Factor quality into your decisions. Review how often you make purchases of low-quality items that need to be replaced. For example, if you replace $65 shoes every eight months, that’s six pairs of shoes in nine years, or $585. On the other hand, if you buy a high-quality pair of shoes for $200 and they last five years, you’re essentially buying two pairs of shoes in those nine years for $400. Shifting your mindset to one of quality can make a long-term difference and help you feel more comfortable about spending money up front.
• Consider your value for people and memories. While every outing doesn’t have to be expensive, think about the relationships you might give up because you don’t want to spend money. Whether you’re avoiding bringing a side dish to a potluck party or going out for drinks, being inflexible can lead to disappointment. Think about the people you love and how a small expenditure can enhance your life.
• Remember moderation. We can oversave just as we can overspend. Review your goals and realize that if you’re on track, you can save moderately, just as you spend moderately.

Spender

The other half of the saving-versus-spending debate is spending. While you probably know you need to save a little more if you’re overspending, you might find it difficult to curb your impulses.

Signs of a spender

• You make impulse purchases, even if you don’t need the items.
• Spending or shopping (“retail therapy”) eases your mind when you’re distressed.
• Budgeting feels like a restrictive activity.
• You often feel as though you can’t quite get ahead with your finances.

Pros and cons of being a saver

How to adjust your habits as a spender

If you’re tired of feeling stressed about catching up every month or worried about how much debt you have, there are some steps you can take to spend less.

• Determine your values. Think about what truly matters to you in life. Once you know your values and how they connect to your money, you can reduce how much you spend on impulse items that you don’t care about after a few weeks. Once you know your values, ask yourself if your spending is in line with them.
• Create a values-based budget. Base your budget on your values and goals. Try to introduce conscious spending into your process so that what you spend money on is what you value, and it’s easier to say no to the things that aren’t as important. It makes budgeting less onerous.
• Automate long-term savings goals. Set up automatic transfers for long-term goals and, if you contribute to a workplace retirement plan, raise the amount you have withheld from your paycheck. That way, you’re saving without having to think about it as much.

Sharer

Sharers are generous and willing to give to others. However, this can sometimes mean they put others’ needs ahead of their own.

Signs of a sharer

• You ensure that others have what they need before attending to your own needs.
• You might struggle to make ends meet each month because your resources are going toward others.
• You enjoy good company and would rather be with loved ones and pay for them than miss out on their presence.
• It can be hard to say no when people ask for things or your time.

Pros and cons of being a sharer

How to adjust your habits as a sharer

Generosity is generally a laudable trait, but if you share too much without prioritizing some of your long-term money goals, you could end up stressed later if you don’t have the resources to meet your own needs.

• Recognize that you can help more when you’re financially stable. The old trope about putting on your oxygen mask before assisting others remains accurate. Although you might be able to help a few people by over-giving, you can have a greater impact if you’re financially stable. Make a plan to cover your short-term and long-term needs and goals. Once that’s in place, you’ll be better positioned to give more effectively.
• Automate your savings goals. Out of sight, out of mind. If you can increase your retirement withholdings and automatically transfer money to savings for other goals, you won’t view it as readily available to help others.
• Create a sinking fund for helping others. In accounting, a sinking fund describes money set aside to meet future debt obligations. If you adapt that mindset to your “sharing budget,” you can set aside money each month and be more prepared to give without breaking the bank.
• Realize you can say no. As a sharer, it can be hard to refuse requests, but sometimes you need to. Practice saying no—and not explaining yourself when you do.

Investor

An investor focuses on how their money can generate a return. They understand calculated risks, but might sacrifice the present for future gains.

Signs of an investor

• You focus on long-term thinking and the value of compounding to build wealth.
• You often put every extra dollar toward future goals.
• You might say no to something if there isn’t an obvious financial benefit.

Pros and cons of being an investor

How to adjust your habits as an investor

Overall, being an investor is a good thing. You invest money in long-term assets and hope to reap the rewards in the future. However, an obsession with the future can cause you to miss opportunities in the present.

• Run the numbers. Take time to figure out what you truly need to meet your goals. It might be less than you think. If you can meet your goals while investing a little less, pare back what you sock away to free up more liquid funds for enjoyment today.
• Consider a portfolio with more liquidity. Include cash in your portfolio. Think about opening a high-yield savings account with at least three to six weeks’ worth of expenses so you have liquidity in an emergency. You can draw on that and gain time to tap other assets as needed.
• Remember that you have valuable relationships. As an investor, it can be tempting to maximize the “return” on your time, so you might spend a lot of it working and neglecting your loved ones. Set aside time to spend with the people you love, even though it’s not time that can be monetized and invested for a return.

Gambler

Gamblers have a high risk tolerance and are willing to make big moves if they think they can strike it rich. They might make money quickly, but they can also lose it just as fast.

Signs of a gambler

• You love the thrill that comes with taking a risk and potentially getting a big payoff.
• You might be over-leveraged because you’re willing to borrow to focus on an opportunity.
• Day trading and cryptocurrencies are likely a significant part of your investment strategy.

Pros and cons of being a gambler

How to adjust your habits as a gambler

Gambling can add an element of pleasure to your life, but it also comes with risks. You might be fine with taking chances, but they can undermine your future financial stability and affect your relationships.

• Set aside money for risks and experiments. Some investors add alternative investments (anything outside the traditional world of stocks and bonds) to a standard (e.g., 60/40) portfolio. If you like to invest in start-up companies, trade futures and options contracts, or own other alternative asset classes, consider limiting them to 10% of your asset base.  
• Dedicate a portion of your wins to long-term goals. Did a trade or investment pay off big-time? Rather than putting all your gains all into a new risky opportunity (a parlay, in sports-betting lingo), consider investing half (or another percentage) into something with a more moderate risk/reward profile.
• Explore other activities that can provide satisfaction. It’s no secret that gambling and other risky behaviors release endorphins and tap into the brain’s “pleasure center.” When you can substitute gambling behaviors with other activities that can light up those pleasure pathways—game nights, outdoor fun, or shared adventures with loved ones—you may become less inclined to engage in behaviors that have a high risk of losing money.

The bottom line

You probably don’t fit neatly into one money personality box. In fact, yours may contain elements of each type—and some traits might be stronger at different points in your life. Review these financial personalities to recognize some of the habits you might have developed, both good and bad, and some of the fears and concerns that may be influencing your money decisions.

Once you know more about your relationship with money, you’re more likely to recognize when you’re making detrimental choices and make changes to your approach.