Your Money Personality Type, 4 Types of Spenders

Being conscious of your spending habits is important. Once you become aware of the reasons you spend money and the hows and whys of spending, you can make better decisions and can plan your budget accordingly. Your budget starts with you, how you handle and spend money, so why not know your Money Personality and make better and informed decisions. 

Michele Cagan, CPA, Author of Budgeting 101, shares 4 categories of Money Personalities 

  • Emotional Spendors buy more when they are happy, angry, sad which can lead to impulse purchases and credit card debts. Creating special savings account to cover an occasional overspending will help prevent credit debit card debts
  • Status Spendors live large. Their motto is live like king/queen size. They love taking risks and buy big stuff which can lead to budget breakdown, thus by budgeting for those big purchases, they can smooth out financial ups and downs and occasional losses
  • Dodgers avoid money stress by hiding for it like not paying their bills on time. They don't think and plan for the future. Automating budget features like expense tracking and saving reduces the stress. 
  • Mega Savers are future focused and don't believe in taking risks. They avoid debts and invest ultra conservatively but this can also take a financial toll in the form of low credit score and savings that don't keep up with inflation

So, Whether you are an emotional spender, or a status splendor, proper budgeting can help you live financially secure and debt free

For more info Buy the Book on Amazon Budgeting 101

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