There are six distinct money personality types – here's how each one should save

money in a pot

You’ve ditched the takeaway coffees, deleted UberEats from your phone, and downloaded a budgeting app.

And yet you still feel like you should be saving more money, whether that’s because you’re a long way from having enough for a house deposit, or you’d just like a bit more security for the future.

Perhaps you’re missing a trick by not catering your approach to saving to your personality type.

That’s what the Clare Framrose, head of savings at Atom bank, reckons, anyway.

Clare says there are six personality types when it comes to managing money, and each one needs to employ different techniques to boost their savings.

So, which one are you? And what should you be doing?

The Worrier

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

‘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.’

You’re likely a worrier if you often find yourself up at 3am panicking about your money situation, experience deep dread when you check your bank account, and feel like you have no clue what you’re doing.

Clare suggests that worriers rope in some external support. Knowledge is power and talking about concerns is key.

‘Worriers will benefit from more open and positive discussions around money, especially with a financial advisor,’ she notes. ‘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.’

The Avoider

You’re the type to bury your head in the sand and pretend everything’s fine.

‘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,’ suggests Clare.

‘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.’

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The Compulsive Spender

Compulsive spenders love to go on spending sprees. They’re the type who always feels the need to treat themselves – even when they know they can’t afford it… especially not for the fifth time this month.

You’re an impulsive, emotional spender who gets a rush from buying stuff.

Clare advises: ‘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, also recommends coming up with a specific future goal that you can focus on.

‘The benefits of saving money materialise over time, so focusing on a future goal can make it easier to save money,’ he notes. ‘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.’

The Compulsive Saver

The opposite of the above, this personality type feels the need to save every penny – and struggles with guilt when spending, well, anything.

That might be good for your bank balance, but it’s not a good route to financial or mental wellbeing.

‘Neither extreme spending nor extreme frugality is a pathway to happiness,’ explains Mario. ‘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.’

Clare suggests ‘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’.

The Risk Taker

You make quick decisions and don’t always think about the potential consequences. You like to gamble.

‘The Risk Taker’s 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,’ says Jo.

‘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.’

Clare suggests creating a barrier for spending, explaining: ‘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.’

The Saver-Splurger

Do you start every payday with the best itentions, moving money over to your savings and vowing to stick to a budget… only to end up in your overdraft over and over again?

If you, you’re the Saver-Splurger type – and you’re definitely not alone.

‘While 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,’ Clare tells us.

‘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.’

If you want more tips and tricks on saving money, as well as chat about cash and alerts on deals and discounts, join our Facebook Group, Money Pot.

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