What Is Your Money Personality? Meet Sally Spender, Holly Hoarder, Wendy Worrier, and Alice Avoider

It is important to reflect and discuss a topic close to every wallet: money personalities. Just as each of us has a unique fingerprint, our approaches to managing finances can differ greatly. Meet Sally Spender, Holly Hoarder, Wendy Worrier, and Alice Avoider. They represent the diverse spectrum of money personalities that many of us fall into. Let's delve into their financial habits, quirks, and potential pitfalls.

Sally Spender: The Impulsive Shopper

Sally Spender lives life in the fast lane. She’s the epitome of impulse buying, often succumbing to the allure of flashy sales and trendy gadgets. From designer handbags to the latest tech gadgets, Sally finds it hard to resist the urge to splurge.

While spontaneity can add excitement to life, Sally’s lack of restraint can lead to financial instability. Without a budget or savings plan, she risks falling into debt and living paycheck to paycheck. Sally can benefit from practicing mindfulness regarding spending and developing a budget that aligns with her financial goals.

Sally should:

1. Drill down on her budget and choose the 2-3 items that bring her the most joy. With little exception, she will only be allowed to spend money on her necessities and the 2-3 subjects she chooses.

2. Implement the 24-hour rule: Whenever she feels the urge to make an impulsive purchase, she should force herself to wait 24 hours before buying. This cooling-off period will allow her to reflect on her intentions behind purchasing the item and whether the purchase aligns with her needs and budget.

3. Unfollow any accounts that usually incite her to click and buy to remove the temptation. The same goes with any promotional emails. Delete and send to SPAM.

Holly Hoarder: The Extreme Saver

On the opposite end of the spectrum, we have Holly Hoarder. She’s the queen of thriftiness, squeezing every penny until it squeaks. Holly takes pride in her frugal lifestyle, clipping coupons, and scoring deals like a pro. Her savings account is her pride and joy, and she’s always on the lookout for ways to stash away more cash.

While Holly’s dedication to saving is admirable, Holly may take it to an extreme by hoarding excessive amounts of cash instead of investing for long-term growth. This could lead to her savings losing value due to inflation over time.

Holly might also deprive herself of essential expenses like proper healthcare, home maintenance, or replacing worn-out items, potentially leading to larger costs down the line.

Holly should:

1. Create a “Fun Bucket. ” Given how well Holly manages her budget, she shouldn't have any trouble intentionally setting aside money for activities she enjoys. This fund can be earmarked for a particular leisure pursuit, trip, or hobby, or it can simply be labeled as "Miscellaneous Good Times" for guilt-free spending. This approach will help her avoid feeling deprived.

2. To ensure she will contribute to this fund, Holly can set up automatic transfers from her checking account to her savings account. This way, a predetermined amount is allocated.

3. Holly would benefit in general from the bucket method. In addition to the FUN Bucket, this type of person would have several buckets: healthcare, home maintenance, clothing, etc. This practice will give her the sense of control she values.

Wendy Worrier: The Anxious Investor

Wendy Worrier is constantly on edge when it comes to her finances. She frets over every financial decision, from choosing investments to paying bills on time. Wendy’s fear of the unknown often leads to analysis paralysis, causing her to miss out on potential opportunities for growth. Wendy jumps in and out of the market whenever she feels nervous. Rather than sticking to a long-term strategy, she may impulsively buy and sell investments based on short-term market fluctuations and her fears. This pattern can lead to suboptimal returns and increased transaction costs.

Wendy should:

1. Create a comprehensive financial plan – Having a well-defined roadmap can provide a sense of control and reduce uncertainty.

2. Start with more conservative investments that allow her to sleep at night.

3. Celebrate small wins and have annual reviews to acknowledge and celebrate her financial achievements. This positive reinforcement will boost her confidence and remind her that over time, her efforts are paying off.

4. Automate her investments and savings. This approach will prevent her from making emotion-driven decisions during market fluctuations.

5. Practice Mindfulness – Wendy can utilize techniques like meditation and deep breathing to stay grounded and focus on the present moment. This will help her in all aspects of her life so she does not catastrophize about the future.

Alice Avoider: The Procrastinator

Last but not least, we have Alice Avoider. She prefers to bury her head in the sand when it comes to money matters, avoiding financial responsibilities until they can no longer be ignored. From ignoring bills to neglecting retirement planning, Alice is a master of procrastination.

She might also delay time-sensitive financial decisions that will have negative consequences such as:

• Failing to file taxes on time

• Failing to update beneficiaries on retirement and investment accounts

• Refinancing a mortgage when rates are low

• Rolling over a 401(k). This person usually has 5 old 401(k)s sitting around.

Alice should:

1. Find an accountability buddy that will help her face the facts and get a clear picture of her current situation. Whether it is a spouse, a friend, a support group, or a financial planner, Alice should find someone who will hold her accountable as she gets her finances organized.

2. Prioritize her finances. Often, Alice neglects her finances because she feels she doesn't have the time to deal with them, not because she doesn't care. Setting aside one day a month or week to focus on completing a few financial tasks will make it seem less overwhelming.

3. Take it one small step at a time. Breaking her financial tasks down into smaller tasks will help her feel accomplished and build confidence. Reflect on what is the most important or time-sensitive (needle-moving) task, and start with that one first.

4. Getting started is the worst part. But once you start, you are on your way!

All of these personality types could benefit from self-reflection and/or guidance from a financial therapist or counselor help to understand their relationship with money. It is important to develop a healthier relationship with money and find a balanced approach to saving and spending. True wealth encompasses more than just financial assets. By incorporating moderation and mindfulness into their saving habits, each of these ladies can enjoy a fulfilling life without compromising their long-term financial security.