What money personality are YOU? Expert reveals key financial identities

Saving money can often mean cutting back on things you love – but these tips prove that doesn’t need to be the case.

Experts have now revealed how your money personality type might be impacting your attitude to money – as well as your ability to save.

From compulsive savers to risk-takers and worriers, psychological and financial experts explained how to adapt your saving tactics depending on your behaviour.

Clare Framrose, Head of Savings at Atom bank, told FEMAIL that understanding how your personality operates around money is the first step towards shaping saving habits that work for you.

Here, FEMAIL reveals the six different types of personality and how you can best save…

Financial experts have revealed the six different financial personalities – and how you can organise your money whatever your type

1. THE WORRIER

The clue’s in the name – a person who classifies themselves as a ‘worrier’ is most likely to feel anxious when they think about money.

Whether they have money or not, worriers tend to lack the confidence needed to maintain a foolproof financial status.

Clinical psychotherapist, Dr Jo Gee explained: ‘A ‘worrier’ is often unduly risk-averse, experiencing stress, insomnia and panic – all of which can potentiate a very vicious worry cycle around money.

2. THE AVOIDER

Adam Bullock, Director of TopCashback.co.uk, explained: ‘This type of personality can be interpreted in a few ways.

‘You could either be the sort of person who really doesn’t think that much about money at all or you may avoid talking about your finances in the hopes that any issues disappear on their own.’

If you’re an avoider, it’s unlikely that saving comes naturally to you – however, it is likely that you tend to bury your head in the sand when it comes to your finances.

Though putting problems to one side might clear one’s headspace for a little while, it certainly doesn’t help an avoider to solve an issue altogether.

HOW TO SAVE: Clare advised that those who tended to avoid any money woes should try to adopt a fun method to help them get into the swing of saving.

She said: ‘For people who like to hide away from their money problems, adopting fun spending habits that track any potential financial issues – before they catch up with them – is a great way to keep them interested and engaged.

‘If that’s you, then you could try doing a no-spend challenge, which means minimising or cutting out your spending in a specific area.

‘You could also try not buying clothes, eating out, or drinking alcohol for a week – then put the money you would have normally spent on these things into your savings.

‘This can be an exciting way to challenge yourself, just be sure you don’t ‘no-spend’ on any life essentials!’

‘They often go to great lengths to avoid making errors due to a general lack of confidence, so we’re likely to witness a ‘worrier’ preparing for money catastrophes and obsessing over the amount of money they have.’

Dr Jo explained that worriers tend to be governed by emotions such as anxiety, and are most likely to benefit from external perspectives when it comes to their money.

HOW TO SAVE: Savings expert Clare Framrose advised: ‘Worriers will benefit from more open and positive discussions around money, especially with a financial advisor.

‘If the issues are impacting their everyday life, it might even be worth taking a financial awareness course.

‘To avoid unnecessary doubts, I would suggest that someone who worries about money, store their savings in an instant saver account – so that they can be secure in the knowledge that they can access their funds at any given time, should they need to!’

3. THE COMPULSIVE SPENDER

Do you get your kicks from going on spending splurges? Do you enjoy living outside of your means?

Sure, it can be fun to go on the odd shopping spree and treat yourself to a – usually much-deserved – goody, but it’s important to do it in as controlled a manner as possible.

HOW TO SAVE: Claire explained that those who are compulsive spenders should try to create barriers between their bank account and potential purchases.

Clare advised: ‘For those of you who feel like you compulsively spend and who want to gain a sense of control, I suggest that you put a percentage of your income into a fixed savings account – as, that way, your money won’t be as readily available for you to whip out on a whim.

‘That invisible barrier will stop you from making unnecessary deductions to your bank balance without proper thought and consideration.’

Mario Weick, psychologist at Durham University, delved deeper into how looking to the future can help compulsive spenders reign in their spending splurges.

He explained: ‘The benefits of saving money materialise over time, so focusing on a future goal can make it easier to save money.

‘If you focus on the here and now, you may encourage further spending. The key to strengthening your savings is to make the process easy, sociable and fun.’

Meanwhile Adam suggested stopping ‘window shopping and looking out for the next big thing.’

He said: ‘Take the time to appreciate what you already have, and realise that the item currently in your basket probably won’t add too much value to your life. It’s okay not to have the latest or be the greatest every day.’

Meanwhile he advised maintaining a ‘lockdown’ view of inventive thinking to keep yourself and your family entertained.

He said: ‘Thanks to lockdown, we’ve all had our fair share of indoor movie marathons and zoom call quizzes.

‘But just because the world has started to open up, it doesn’t mean we need to let go of all the free fun we were having prior.’

4. THE ULTRA-SAVER

If you’re a compulsive saver who struggles to put aside disposable income or have fun with their money, it might be time for you to reassess your financial habits.

Adam explained: ‘Have you ever heard the saying, too much of a good thing is bad? Well, sometimes we can be a little excessive with our savings.

5. THE RISK TAKER

According to Adam, the risk takers will gain an ‘adrenaline rush’ which is ‘worth the potential or indeed real losses.’

He said: ‘These investor personality types take great pleasure in success, and will often find new and inventive ways to make money.

‘However, their risky nature can lead to big gambles that are detrimental to keeping up a good relationship with money.’

If you believe that you can ‘speculate to accumulate’ and often take risks without considering the potential consequences, you may want to consider how you make decisions around money before your luck runs out.

Dr Jo Gee unearthed some of the reasons why people might take more financial risks.

She said: ‘Their behaviour is motivated by the production of dopamine from neurons in the brain’s reward circuit, which creates a sense of pleasure and thrill at the concept of risk and reward.

‘Short term gain should never win out against long term pain, so these personality types need to set boundaries around their financial risks, define these with a financial advisor and get therapeutic support if their sensation-seeking behaviours are becoming an issue.’

HOW TO SAVE: Clare reiterated: ‘If you often find yourself making financial decisions with little forethought, it’s vital that you stay aware of your tendencies and be mindful of how much money you need to set aside to retain financial stability.

‘A fixed saver account is paramount for this type of personality, as it sets a clear ‘stop’ point for spending.’

‘Now of course it’s fantastic to search high and low for a good deal and haggle your way to the best price possible. But there is a fine line between being savvy, and being cheap.

Mario added: ‘Neither extreme spending nor extreme frugality is a pathway to happiness.

‘Uncontrolled spending can cause guilt and debt but, on the other hand, being overly frugal can be burdensome and cause excessive worries about how you spend your money.

‘A healthy balance between restraint and allowing oneself some pleasure and spontaneity is probably an optimal strategy to boost happiness – it’s the golden formula.’

HOW TO SAVE: In agreement with Mario, Clare insisted that balance really is key when it comes to a compulsive saver.

She said: ‘Moderation, and finding harmony between spending and saving, is vital for a compulsive saver.

‘I’d advise setting aside a bit of a budget for ‘fun’ each month – a lump of cash that is purely used to indulge in yourself and work on your internal happiness.

‘I know what you’re thinking – money can’t buy you happiness – but treating yourself to the things you enjoy every now and then can!’

Adam advised supersavers ‘stop saving at the expense of fun’, adding: ‘Think about the good times and memories that you are missing in the process – is it really worth it?’

Meanwhile he suggested people ‘continue being savvy and searching for the best deals – but loosen up a bit.’

He said: ‘Remember that life is for living and treating yourself every now and then is not the end of the world.’

6. THE SAVER-SPLURGER

Do you routinely start the month with good intentions but end it having spent beyond your means again?

If so, you’re a saver-splurger and could benefit from a bit of a different approach to your financial planning.

Clare explained: ‘Whilst most of us that get paid on a monthly basis plan out our finances each month in line with that, this may not be the most viable route for a saver-splurger.’

HOW TO SAVE: Claire revealed: ‘I would recommend saver-splurgers still having a monthly budget but then splitting that up into weekly spending pots so they don’t lose track as the month goes on and don’t find themselves struggling in the run up to payday.’

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