Posted in Triplett & Carothers on June 5, 2021
What are your attitudes about money? Start by seeing which of these five categories you fit into:
- Saver. Savers save because having money makes them feel secure. They are wired to save rather than spend. When they do spend, especially on big-ticket items, they want to be sure they are getting a good price. At the end of the day, having money gives them more pleasure than spending it.
- Worrier. Worriers are always afraid they will not have enough money, either in an emergency or to give them the sense of financial freedom that they crave. Like savers, they do not spend easily, and they are comforted by having access to cash.
- Splurger. People who fall into this category are impulsive spenders. They may spend on themselves or others. Often, spending gives them emotional gratification.
- Gambler. Gamblers are risk-takers who are always looking for a big win. Things are great when their gamble pays off, and they are distraught when they are on the losing end of the risk.
- Whatever. “Whatevers” have no connection to money. People in this category believe money will always be there, whatever happens. Money is not a consideration when they make life choices.
If you are unsure about where you fall, answer this question: If you found $50,000 on your state’s unclaimed funds website, what would you do with the money?
- Put it in the bank until I can figure out what to do with it.
- Put some of it in a money market fund, pay part of my mortgage, and open 529 accounts for my children.
- Spend it on things I want, buy my family what they want and help my friends.
- Think of it as discretionary funds and play the stock market.
- Give it to charity.
It is all about balance
Although everyone has a primary money type, most people have traits from several categories. Still, people need to understand how their emotional response to money influences how healthy they will be financially.
To have the best result over time, they need to understand how to budget, balance their save-or-spend impulses, and feel content with the balance.