What These Money Tendencies Say About Your Financial Habits

Understanding Your Money Tendencies

Did you know that there are seven money tendencies that influence how you manage your finances? These tendencies shape your spending, saving, and investing decisions—often without you even realizing it.

A few years ago, I wrote a book called Know Yourself, Know Your Money, where I identified these seven tendencies and how they affect wealth-building. Today, I want to share them with you so you can understand where you fall on the spectrum and how to use this knowledge to your advantage.

This is not about judgment but about awareness and intentionality. By recognizing these tendencies, you can make better financial decisions that align with your goals.

1. Spender vs. Saver

One of the biggest money tendencies is whether you naturally lean toward spending or saving.

• Spenders enjoy using money for experiences and material things but may struggle with budgeting.
• Savers prioritize financial security but may find it hard to enjoy their money. Neither is inherently good or bad. The key is finding a balance where you can save responsibly while still enjoying your money.

2. Security vs. Status

This tendency is about what money represents to you.

• Security-driven individuals see money as a safety net and focus on long-term financial stability.
• Status-driven individuals view money as a tool for lifestyle upgrades, prestige, and social standing. Understanding this tendency can help you align your financial goals with your personal values.

3. Abundance vs. Scarcity Mindset

How do you view financial opportunities?

• An abundance mindset believes there are endless opportunities to earn and grow wealth.
• A scarcity mindset sees money as limited and feels the need to hold on to every dollar tightly. If you find yourself stuck in a scarcity mindset, working on shifting your perspective can help you take more calculated financial risks.

4. Experiences vs. Things

Where do you prefer to spend your money?

• Experience-driven people invest in travel, events, and making memories.
• Material-driven people enjoy purchasing items that add value to their daily lives. Neither is right or wrong, but being aware of your preference can help you budget accordingly.

5. Spontaneous vs. Planned Spending

Do you make purchases on impulse or carefully plan them out?

• Spontaneous spenders tend to make quick financial decisions and may struggle with long-term saving.
• Planners research before making purchases and often have detailed financial strategies. If you’re more spontaneous, setting limits or using cash envelopes may help you avoid overspending.

6. Debt-Accepting vs. Debt-Averse

How do you feel about borrowing money?

• Debt-accepting individuals view debt as a necessary tool for opportunities (e.g., student loans, mortgages, business investments).
• Debt-averse individuals prefer to avoid debt at all costs and focus on paying everything in cash. Recognizing where you stand can help you create a debt management plan that aligns with your comfort level.

7. Giving vs. Holding on to Money

This tendency focuses on generosity versus financial self-preservation.

• Givers find joy in charitable giving, helping others, and sharing their wealth.
• Money holders prioritize personal financial security and may struggle to part with money. Striking a balance between giving and financial self-care ensures that you are both generous and secure.

How to Use These Insights

Once you recognize your money tendencies, you can start making more intentional financial decisions. Here’s how:

• If you’re a spender, create a budget that allows for fun money while prioritizing savings.
• If you’re security-driven, don’t forget to enjoy your hard-earned money.
• If you lean toward debt acceptance, ensure you’re using debt wisely and not relying on it too heavily.
• If you’re a spontaneous spender, consider implementing a 24-hour waiting rule before making big purchases.

By understanding your financial tendencies, you can develop habits that work in your favor rather than against you. The key is to recognize where you are, celebrate your strengths, and make adjustments where needed.

Which of these money tendencies do you relate to the most? Share your thoughts in the comments below!

All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.