What’s your money personality? If you’ve never heard of it before, Money Habitudes is a game-like assessment that helps people understand their approach to money, and how they can work with others.
Everyone has a money style that impacts how they view, spend and save money. Understanding why you and your partner use money differently can cut down on financial fights and misunderstandings, which can be a major point of contention in many relationships.
There are six types of money habitudes: spontaneous, status, giving, security, carefree and planning. Most people are going to have more than one type; some work well together, but others compete, which can cause some anxiety around money. But learning more about your type and why you approach money the way you do can offer a lot of clarity in your financial decisions.
Spontaneous Money Personality
Spontaneous types are very comfortable spending money, and find it more difficult to save. They like to use their money to enjoy life, and don’t think much about putting money towards luxuries, experiences, or online finds.
Spontaneous types love to invest in things that will enrich their lives, but this can make it difficult for them to plan long-term. They do tend to struggle is saving, and they may have some guilt over their spending. This is where a budget comes in handy. A budget might feel restrictive at first, but it can actually be very freeing for a spontaneous, especially if it includes some categories for guilt-free spending.
If your significant other is a spontaneous type, work together on coming up with financial goals you’re excited about, and a budget you can stick to. Make sure you take time frequently to go through your finances together. This will help both of you feel more in control of the household spending and your money progress.
The status habitude enjoys making a good impression. They value appearances and generosity, and have a hard time accepting financial help from others.
The status type will often invest in high-quality items like jewelry, furniture and cars, even if they might not have the means to do so.
The challenge for a status type is that they might end up trying to keep up with the Joneses rather than doing what’s best for them and their situation.
If this sounds like you, work on finding value yourself without spending money. If you love giving gifts, challenge yourself to do so by spending time or giving more affordable, sentimental gifts.
Figure out what you want most. If you desire a financially secure future, you might need to cut back on spending. If you need more help, try working with a financial planner to keep you on track.
The giving type enjoys taking care of others, and putting others’ needs above their own. They often have strong values, and might give money to their family, church or charity. Generosity is important to them, and they use their money to make others happy.
The downfall to this type is that they often find others aren’t as generous in return, or they might not appreciate the giver’s gestures. A giver type might also not put as much care and thought into taking their own needs and financial future.
If you are a giver, it’s important to remember that you have to take care of yourself before you can truly take care of others. It’s up to you to make sure you’re saving for the future, so you can continue to be there for others if that’s important to you.
Take a look at who you’re helping and make sure your generosity isn’t becoming a crutch for people. Alternatively, if you do want to help people financially, understand that others might not return the favor. Try to be more intentional with giving and build it into your budget; set aside money for charity, gifts, or unexpected expenses you want to help with. That way, you can continue to give while still making your own finances a priority.
Security types have no problem socking their money away for a rainy day. Their goal is to make sure they always have the money they need, and save whenever they can. It can be difficult for security types to part with their money, even if it might benefit them.
If you’re a security type, you may be very good at making sure that you or your family has funds set aside for emergencies and future goals. But you might struggle to spend a bit more where it would make sense, or agonize over having to spend your money.
It can be very helpful for you to see the big picture for their money, and keep a budget. That can make it easier for you to not get so caught up in small expenses, or even see the value in spending more in some areas.
Security types often end up in relationships with a type more comfortable with spending, and while this can be a contentious pairing, it can also be perfectly balanced. Security types can help spenders dream bigger, and spenders can help security types realize the steps it would take to get there. As long as different money styles continue to communicate and work toward a common goal, they can have a lot of fulfillment in their financial life together.
The carefree type is the person who would just rather not think about money at all. They may not inherently be a spender; they just prefer not to track their spending or be involved with the household finances. It’s pretty common to find this style in relationships, especially when their partner is very focused on handling the money.
The carefree type can encourage their partner to live in the moment and spend money on the items and experiences that will enrich their lives. But they can also be too loose with their spending, and might not be taking meaningful steps toward their financial goals.
If you’re a carefree type, the first step is to automate whenever possible. Automate bills, move money to savings accounts, fund retirement accounts, etc. That will ensure you are consistently making progress toward your goals without even thinking about it.
But another important step is actually getting involved with the finances. You don’t have to become Warren Buffet, but in a relationship, both parties should know what’s going on with the money. Try to have consistent meetings with your partner to make sure you’re both on the same page, or use a budgeting program so that you can see what’s going on with both of your accounts. If something happened to your significant other and you needed to take over the finances, it’s important that you can do that successfully.
Planners like to grow their money as much as possible, and enjoy learning about the markets and keeping an eye on their wealth. There are different types of planners, which can impact your overall style.
If you’re more of a gambler in your investing, you might be interested in capitalizing on trends or quick opportunities with short-term investing. It’s okay to try out new things, but you should make sure you have money set aside to do that with. Short-term investing is risky, and so is timing the market. But some people enjoy it, and treat it like a hobby. If that’s you, just make sure you have a fund set aside that you’re okay with potentially losing.
If you’re more interested in long-term planning, you might be a bit more frugal, and want to do whatever you can to keep your money growing. Financially, this is a wise approach, and sets you up for a more financially sound future. But as with the security type, it’s important to not sweat the small stuff. You can spend money on the things and experiences you enjoy, while still meeting your investing goal.
Many couples fight about money because they’re not on the same page, and they don’t understand why their partner manages their money the way that they do. Understanding money types can help you communicate better, and use both of your strengths to improve your life.
Regardless of your money types, the best thing you can do for your relationship is to communicate regularly about your money. Have an open discussion with the whole family, or even plan a money date night to make it more fun.
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