Which Money Personality Can Make You Rich?

money personality

If you had the money to buy the thing you have always wanted right now, would you go and buy it?

How about this: if Warren Buffett wrote a million dollar check for you and you had the choice either to splurge it or save it, what would you rather do?

Here’s what I’m going to do and I’m 100% percent sure I’m going to do it.
1. Stash 20% as cash deposit for emergency
2. Invest 50% in high-risk assets
3. Invest 20% in low-risk assets
4. Enjoy and give away 10%

Some of you may disagree with me and I expect that that will be the case. That’s because we all relate to money in different ways. We have different money personalities.

I am a risk taker and you might be a security seeker or a saver. If you don’t know your money personality yet, let’s go and find it out on this episode. What are the money personalities?

Find out what’s your money personality and what you should do to become rich


Spenders are impulse buyers and love to spend for themselves or for others. It doesn’t matter how much they make, whether they can get by or not; they spend for what they want. Spending on vacations and acquiring stuff can make them feel good about themselves. For them, money is meant to be enjoyed and there are lots of memories to be made by spending for other people.

If your pocket were bottomless, being a spender is not a problem; in fact you may be very generous to your friends and families. The problem it that money is a limited resource. If you’re a shopaholic on the loose, you might be saving nothing or worse, rack up huge debts.

Have a self-introspection and admit that you’re blowing your money every payday; unless you realize this, change is not going to happen. Then, of course, you have to start living below your means, develop a saving habit, keep a budget and grow your emergency fund.


The opposite of spenders, savers get that emotional contentment when they get to keep part of what they earn. They love coupons and getting discounts; they avoid expensive stuff and buying on impulse. They avoid debt, save furiously, and always keep an eye on their financial goals.

Savers are meticulous about their money. They need to know where every cent goes and some are even obsessive about it. And that’s the not-so-fun part about it. Obsessive savers sometimes take the fun away just to save a few dollars. To other people, they might even come across as “kuripot.” Some savers save too furiously that they get burned out, feeling tired that life has too little to offer.

If you’re a saver, you need to loosen up and “take it easy.” Take some risks and enjoy the fruits of your own labor. To do this, you might want to allocate a fixed percentage of your income to a budget for “leisure” because all of us humans need some form of enjoyment. Go out with friends, take a vacation. Done on a budget, I’m sure savers will gradually like it.

Risk taker

The fearless bunch. Risk takers love the rush they get when they’re in a high-risk deal. The reward doesn’t matter as much as the risk-taking does. Risk avoiders may see something as a pile of mud, but risk takers see it as an ocean of opportunities for growing their money. They dump their money on an investment opportunity or a business deal; they think fast and seize the moment because there’s just plenty of risks worth taking. Most risk-takers grow up to become businessmen, angel investors, or market speculators.

In life, growth comes with taking risks and moving out of your comfort zone. Here, the risk taker has a huge advantage over other money personalities. When you read the biographies of big names like Donald Trump, Richard Branson, J.P. Morgan, – the list goes on – the common theme is endless risk-taking.

When it comes to money, however, risk-takers could be in a vulnerable position. If, for example, you are a risk-taker with most of your assets invested in a hedge fund focused on the commodities or currency exchange markets, or in a real estate business when people are losing their homes as the housing bubble pops, you could lose your money instantly.

If you’re a risk taker, you need to learn to allocate your assets, to manage risks, especially if you’re older. Avoid “gambling” unless you’re already in a financial position where “huge” risks only mean pennies to your assets.

Risk avoider

If risky deals give risk takers a thrill, they give risk avoiders a deep feeling of uneasiness. Risk averse people only want their money to be safe and sound. They don’t care about the possible payout from high risk/high reward opportunities. As such, they invest in low-risk assets like life insurance, bond or money market funds or keep mostly cash in a 7-inch fireproof safety deposit box. They’re content with safety because, well, it’s better to be safe than to be sorry.

Risk avoiders, however, might be missing out on better returns for their money if they seek shelter too early. We know that saving money is not enough because of inflation rates; we already have discussed the Ferraris of investing that is the stock market.

Loosen up a little bit and embrace some risks. Go beyond savings accounts and certificates of deposits. With proper asset allocation and risk management, you could get a lift from any of the investment vehicles, taking you faster to your financial goals.

Money personalities are shaped by fear and greed, two of the strongest emotions humans have about money. When you’re too scared, you’ll seek security; you can’t make money work for you. When you’re too greedy, you’ll seek risks that might border on gambling and put you into instant ruin.

The key is to know yourself and go against it. Our greatest enemies are ourselves, and when we know ourselves, we’ve already won half the battle.

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