4/30/2021 There are 7 money personality types, says psychology expert. Which one are you?

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There are 7 money personality types, says

psychology expert—how to tell which one you are
(and the pitfalls of each)
P u b l i s h e d We d , A p r 2 8 2 0 2 1 • 1 2 : 51 P M E DT

Ken Honda, Contributor

@ K E N H O N DA H A P PY

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We often stress about the importance of financial literacy, such as gaining a

strong understanding of how money works and having the resources to make
informed decisions.

But when it comes to establishing financial health, one thing most people fail to
consider is their money personality type — or their approach and emotional

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4/30/2021 There are 7 money personality types, says psychology expert. Which one are you?

responses to money.

We each have our own beliefs and emotions about money, and they are mostly
shaped by our individual life experiences (e.g., passed down from our parents or
influenced by our current situations).

In my 10-plus years of researching the psychology of money and happiness, I’ve

found that there are seven distinct money personality types. Typically, we fall into
a combination of many types, and not just one.

7 Money Personality Types Ken Honda, author of “Happy Money”

Identifying which types you fall under, and understanding the pitfalls of each, can
significantly improve your relationship with money. It can help you do things like
spend less on impulse purchases, be better about budgeting, invest wisely and
ensure a nice nest egg for retirement.

1. The Compulsive Saver

Signs you might be a Compulsive Saver:

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4/30/2021 There are 7 money personality types, says psychology expert. Which one are you?

• You put away money endlessly, sometimes with no actual end goal in mind.

• You believe saving money is the only way to feel more secure in life.

• You’re very frugal. (Friends will often come to you for advice on which phone
company is the cheapest, which point cards are worth it, or when to buy plane
tickets at the lowest price.)

Pitfalls: Some Compulsive Savers are so afraid of losing money that they go their
entire lives without spending any of what they worked so hard to save. For
example, they might choose to skip out on hobbies or activities that could bring
them happiness and purpose.

Money advice: It’s all about moderation; learn to find a balance between saving
money and enjoying life. Think about where you see yourself in the future and
how you can use your savings to get there.

2. The Compulsive Spender

Signs you might be a Compulsive Spender:

• You tend to spend money on things you don’t necessarily need.

• You have an outgoing personality and love treating people to something

special, sometimes for no particular reason.

• When you’re in emotional distress, your solution is to spend, especially for

immediate gratification.

Pitfalls: Even if they have large amounts of debt, Compulsive Spenders will often
continue going on shopping sprees. They may even try to hide large purchases
from friends and family. In extreme cases, they can be at risk of going bankrupt if
they consistently spend more than they earn.

Money advice: Creating a budget plan will help you see things from a different
perspective. Remind yourself that buying a new car (when you already have one),
for example, means sacrificing money on essential things like saving for
retirement or paying off debt.

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4/30/2021 There are 7 money personality types, says psychology expert. Which one are you?

3. The Compulsive Moneymaker

Signs you might be a Compulsive Moneymaker:

• You believe that earning more money is the secret to happiness.

• You spend most of your energy on trying to make as much money as possible.

• You get pleasure from the approval and recognition from other people for your
financial success.

Pitfalls: While Compulsive Moneymakers are usually on a strong path to

achieving financial freedom, they can enter dangerous territory if they start
neglecting important relationships to prioritize growing their wealth (e.g.,
choosing to work on weekends over spending time with loved ones).

Money advice: Recognize that there’s more to life than money. And if you do have
a sizeable amount of wealth, give it purpose by helping others, whether that
means donating to an important cause or treating yourself to that family
vacation you’ve been talking about for years.

4. The Indifferent-to-Money

Signs you might be an Indifferent-to-Money:

• You rarely think about money (and just the idea of creating a budget makes
you nauseous).

• In extreme cases, you believe that money is inheritably bad or evil.

• You feel strongly that money shouldn’t influence important decisions in life.

Pitfalls: Many people who are indifferent to money feel they only need a modest
amount of money to be happy, which is a healthy mindset. But things can get
ugly if they’re not responsible with their finances (e.g. depending on a partner or
spouse to do the work for them).

Money advice: Even if you are financially comfortable, make it a point to know
things like where your money is going, what your monthly expenses are, and

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4/30/2021 There are 7 money personality types, says psychology expert. Which one are you?

where you stand on debt. Doing all these things can save you a lot of financial
stress in the future.

5. The Saver-Splurger

Signs you might be a Saver-Splurger:

• You share common traits between Savers and Spenders.

• You start out saving a lot of money, but then give into spending impulses out of
nowhere.

• When you do use your savings, you might spend on things you don’t need or
will rarely use.

Pitfalls: It can be emotionally exhausting when the pendulum swings from

compulsive saving to compulsive splurging. Saver-Spenders often end up stressed
and disappointed in themselves for working so hard to save money, only to lose it
so quickly.

Money advice: Like Compulsive Spenders, Saver-Splurgers rarely put thought into
what they’re spending on when they decide to splurge. Before any big purchase,
imagine how you might feel the following week or two. Don’t lose sight of your
financial goals.

6. The Gambler

Signs you might be a Gambler:

• You share common traits between Moneymakers and Spenders.

• The thrill of risk and promise of reward is a pleasure unto itself that you can
quickly get lost in.

• You gamble away your money sometimes for the purpose of escaping
boredom.

Pitfalls: It’s not unusual for Gamblers to encounter sudden windfalls or

devastating losses. The most obvious risk is when the gambling gets out of control
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4/30/2021 There are 7 money personality types, says psychology expert. Which one are you?

and they borrow against things like their retirement money or children’s college
fund to make up for losses along the way.

Money advice: The goal is to be introspective and strict with the financial risks
you take. Balance and security are essential to have, so start setting aside
monthly savings before making any big financial decisions.

7. The Worrier

Signs you might be a Worrier:

• It doesn’t matter how much money you have — you’re constantly worried that
you’ll lose it at any given moment.

• You lack confidence in your abilities to achieve financial freedom.

• You constantly obsess over the worst case scenario of what will happen if you
run out of money.

Pitfalls: It’s smart to be aware of what could happen if you don’t prepare for your
future. But letting worry and anxiety eat away at your happiness in the present
moment is never a good thing.

Money advice: Seek positivity around money conversations. Work on

understanding where your financial worries are coming from, whether that means
talking to a financial advisor or a therapist.

Ken Honda is an expert in the psychology of money and happiness, and the
bestselling author of “Happy Money: The Japanese Art of Making Peace With
Your Money.” He has owned and managed businesses, including an accounting
company, consulting firm and VC corporation. Ken currently lives in Tokyo, Japan.

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4/30/2021 There are 7 money personality types, says psychology expert. Which one are you?

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