Dear Money Lady readers,
I often get asked about helping people deal with money issues, with many Canadians eager to learn how they can change their partner's spending habits, especially if you’re a saver and your partner is not.
Often our financial decisions are deeply rooted in what we’ve learned as a child, including our past socioeconomic status, culture, experiences, and our parents' attitudes towards money.
Let’s face it, life’s expensive – especially nowadays. It’s easy to go into debt without really indulging. We’re all trying to cut back and spend less, but understanding your relationship with money helps you find ways to improve your situation.
Researchers have identified seven money personalities. Of course, some of you may have a combination of few.
Which trait do you most relate to? Once you have decided, try to identify the differences between you and your partner. Then, work on a plan to help each other.
THE WORRIER: This is a person who constantly worries about losing money. It doesn’t matter how much money they have, they are always worried about losing it. Typically, they lack the confidence to believe they can ever be financially stable. I like to call this trait the Money-Prepper — always preparing for the worst, always anxious and always expecting a disaster to happen sometime in the near future.
THE GAMBLER: On the other end of the spectrum, the gambler is the type of person who takes big risks. The problem is they also have extreme mood swings. Sure, they love the thrill of risky money moves, but then tend to crash hard when luck isn't on their side. Be careful with this trait. Gamblers will often go into debt or use savings to make up for past losses.
THE COMPULSIVE SAVER: This is someone who saves money endlessly and views their money as their security. This is a big bargain shopper and will take being cheap to the next level. They'd wrestle a discount out of every sale if they could, and they're happiest when they’ve snag something for nothing.
THE COMPULSIVE SPENDER: Opposite the compulsive saver, the compulsive spender is usually someone whose spending is influenced by their emotions or when in need of immediate gratification. Even if they have a lot of debt, these spenders will continue to go shopping. In extreme cases, this person tends to hide large purchases from family and friends, and while they may feel remorse, they can’t stop. They are often are at a risk of going bankrupt.
THE COMPULSIVE MONEY-MAKER: They believe life is better when you earn more. This could also be a workaholic. These people believe their top priority is making more money and will want recognition for their financial success, like a trophy house, an expensive car or some type of toy that represents their wealth.
MONEY INDIFFERENT: The person who is indifferent to money rarely thinks about money. They never worry and are not very responsible with their finances. They feel that money shouldn’t influence important decisions and usually believe that they only need a modest amount of money to be happy.
THE SAVER AND SPENDER: Most people probably identify most with this personality type — someone who saves a little and spends a little. This person is smart with their money most of the time but, given the right circumstances, will spent impulsively out of nowhere, usually regretting it later.
So, how did you do?
These traits are taken to the extreme in my opinion, but it is a good exercise to uncover your reaction to each trait and perhaps work on changing your relationship with money for the better.
Good luck and best wishes,
Money Lady
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