Your Money Personality

Who is not familiar with the Bible’s wise observation”…the love of money is the root of all kinds of evil…”? (I Timothy 6:10, NKJV).  We can say with certainty that money---the use of it, the misuse of it, the lack of it, the desire of it, the excess of it, etc. --- is indeed a root or fundamental cause of so many of the troubles experienced by couples and individuals. 

Why does money affect us so? Why do we get so “knotted up” about money?  Money represents our deepest emotional needs: love, security, independence, self-esteem, control, etc.  Money is not just financial currency, it is emotional currency as well. Money is the criteria by which we judge and evaluate ourselves and other. Our attitudes toward and relationships with money were formed during our childhood and adolescence, but they were influenced more by what we saw our parents do than by what we heard them say. This is because talking about money is the great taboo in families. As a result, most of us grew up without being given good examples about how to talk about money, much less how to use it wisely.  We bring this into our marriages and sadly pass it onto our children. Then along comes our culture and society, and bombards us with destructive messages about the use of money. Advertising urges us to spend rather than save,  to acquire “things” for emotional gratification and self-esteem, and to consume like there is no tomorrow. These messages of our advertising culture have directly contributed to our national crisis of overspending, under saving and massive national and personal debt.  As the cartoon character Pogo said: “We have met the enemy and he is us!”

The current financial crisis is on everyone’s lips and in everyone’s mind. Where ever you go, someone will more sooner than later nervously ask “Where do you think the economy is headed?” “What do you think the stock market will do?” “When do you think things will begin to turn around?” These alarming financial times have caused many of us to seriously re-examine our attitudes toward savings, spending, investment, and debt. It has caused us to pause and reconsider our relationship with money.

In order to understand the effect that money has on us,  it will help if we understand our “money personality.” This will help us understand why we handle and mishandle   money as we do. Psychotherapist and money psychologist Olivia Mellan has identified five distinct money types or personalities.

1. HOARDERS.  These folk love to save money. They almost always have budgets and enjoy the process of making a budget. Hoarders tend to have a hard time spending money on themselves and even on loved ones. They are frugal and often view expenses for entertainment and vacations as frivolous. Hoarders find their security in the accumulation of money. Taken to the extreme, Hoarders may become misers, unable to enjoy their money even when they have more than ample amounts for future security.
2. SPENDERS. The very opposite of Hoarders, Spenders get satisfaction from buying themselves goods and services for their immediate pleasure.  They tend to get great satisfaction from buying gifts for others. Spenders have a hard time saving money and tend to hate budgets and find great difficulty in making and sticking to them. They have difficulty establishing and saving for long term goals.  Spenders are usually in debt.
3. BINGERS.  A combination of Hoarder and Spender, Bingers tend to save and save, then blow their money on shopping or spending sprees. During times of abstinence from spending, Bingers seem normal. Bingers tend to be compulsive bargain hunters, and justify their excessive spending on the basis of money saved.
4. MONEY MONKS.  If you believe that money is truly the “root of all evil” or evil itself, then you are a Money Monk. Folk in this category tend to think that money is bad, is dirty, and that if you have too much money, it will corrupt you. Money monks are uncomfortable with inheritances and windfalls.  Many have negative responses to money due to liberal social convictions, and tend to favor socially responsible investing.
5. MONEY AVOIDERS.  These folk feel overwhelmed by money. Dealing with money causes anxiety and making budgets, balancing checkbooks, doing taxes, etc. causes them to feel extremely uncomfortable. They are troubled by investing money and feel incompetent when faced with the details of their money life.   Some Money Avoiders act (or don’t act) out of math anxiety,  and others out of sheer discomfort with money. Many Avoiders’ main problems in dealing with money are due to  simple procrastination.

Most people are a combination of several money types, and do not exemplify only one tendency. Each type has both good qualities and shortcomings.  In order to change your relationship with money, begin by identifying your money type, then determine what changes you need to make in order to have a successful, satisfying, and personally fulfilling relationship with your money. It may be wise to seek the counsel of an experienced CPA or financial planner to help you identify and make these changes.

If you would like to receive a Money Personality Quiz to help you identify your money type, please contact my office at 731.668.5665.