Certain groupings may be identified based on a person's characteristics regarding money. This topic has been investigated in a wide range of methods, and many individuals can recognize aspects of themselves in more than one of these money personality profiles. The trick is to identify the kind that closely corresponds with your behavior. The primary types are huge spenders, savers, consumers, and investors.

Big Spenders

People have a lot of money to spend on good automobiles, the latest electronics, and brand-name clothes. People with a personality type that is described as "spending" are not often known for their thriftiness; rather, they are stylish and constantly seeking ways to make a statement. This often manifests as a need for the most cutting-edge mobile phone, the most expansive 4K television, and a lovely place to call home.

Big spenders are the ones to compare one's lifestyle to "keep up with the Joneses." They do not feel uncomfortable spending money, do not worry about getting into debt, and often take significant risks when investing.

Savers

People who are great spenders are the polar opposite of savers. They shop only when essential, shut the refrigerator door as soon as possible to keep the cold in, don't use credit cards for most of their purchases, and switch off the lights whenever they leave a room. They often do not have any outstanding bills and are sometimes referred to as cheapskates.

People who are good at saving money aren't concerned with keeping up with the most recent fashions, and they get more pleasure out of seeing their savings grow via interest than they do from buying something brand-new. Savers tend to be more cautious than others and don't want to take significant chances with their money.

Shoppers

Spending money provides a lot of people with a significant feeling of emotional gratification. They cannot control their spending, even if it is on things they do not need. They are often aware of their addiction, and some even worry about the financial burdens it causes them. They like the feeling of success that comes with discovering a good deal.

Investors come in many shapes and sizes among shoppers. While some people invest consistently via their 401(k) plans and may even invest a percentage of any unexpected windfalls, others see investing as something they will get around to doing at some point in the future.

Debtors

Debtors are not aiming to make a statement with their spending, nor do they purchase as a form of entertainment or to pick themselves up when they are feeling down. They don't give much thought to their finances, so they don't keep track of what they spend their money on or where they spend it.

Most people in debt do so because they spend more money than they bring in and do not put much effort into investing. Similarly, people often need help to take advantage of the 401(k) corporate match.

Investors

Investors are acutely aware of the money they have. They know their financial conditions and make money to invest their capital. Regardless of their present financial situation, investors often look forward to the day when the income from their passive assets will be adequate to pay all of their obligations and expenses. Their behaviors result from deliberate decision-making, and their financial choices reflect the fact that they must be willing to expose themselves to some degree of danger to achieve their objectives.

Make Changes to Your Money Personality

Shop Little Less, Save Little More

If you like spending money, you will probably continue to do so in the future; nevertheless, you should look for value over the long run rather than merely gratification in the near term. Ask yourself how much value you will get from a purchase a year from now before you go out and spend a lot of money on something fashionable or pricey. If the response is "not much," you may skip that question. You'll have a better chance of sticking to your budget if you buy just products you'll put to good use this way.

Use Moderation

Ben Franklin is credited with saying, "moderation in all things." This is very helpful advice for someone who saves money. Refrain from depriving yourself of all life's enjoyable experiences so that you may save a few dollars.

You should also work on improving your ability to save money. There needs to be more than just saving a few dollars at a time. Although avoiding risk should be the primary objective of every investor, increasing returns while maintaining a low-risk profile is the secret to a profitable investment.