When you think about your relationship with money, what words or ideas spring to mind? Maybe it’s fun and big nights out, perhaps it’s planning and pensions, or it could be nothing at all because you’d rather spend your time thinking about anything other than money. One thing is clear, we all have different money personality types.
The saver. Do you like spending as little money as possible? You could be a saver. Your brain is focused squarely on the future and you love saving your money for those times you’ll really need it – when the boiler breaks, you have to take that emergency trip, or your car blows a gasket. Even if that proverbial rainy day never comes you have a hard time parting with money, which can mean you miss out on experiences or go without something that would give you enjoyment in the present.
The spender. What good is life if you don’t enjoy it? Unlike the saver, you see money as a way to have fun in the here and now. You don’t stress over spending on celebrations, nights out, trips, or some new clothes. Your guilt free spending allows you to revel in the here and now, but watch out, you may find yourself caught short when retirement rolls around or if an emergency arises.
The ostrich. If you’d rather walk over broken glass than talk or think about money you might be an ostrich. Perhaps you find money matters a bit stressful because you think you lack financial knowledge or maybe you just find the topic dull as dishwater. Whatever your reason, you spend a lot of your life ignoring money – just make sure not to neglect it so much that you fail to plan for retirement or properly monitor your bank account.
It’s not always clear where we get our ideas and feelings about money. Sometimes they develop during our early years. By seeing how our families deal with money and the impact it has on quality of life, we form basic mind-sets about finances that encourage us to squirrel away money for the future or spend lavishly.
Our money personality can also spring from financial situations we’ve had to deal with in the past. An obvious example being the way rationing during World War II helped promote a “make do and mend” attitude that led many people to be risk-averse savers even after rationing ended.
But some research suggests that our attitudes towards money are related to genetics and our brain chemistry. In one study, researchers found that areas of the brain associated with pain showed activity when savers spent money. This explains why some of us actually feel a bit of physical agony at pressing the checkout button when we buy something on line.
So, which money personality are you? There is no right or wrong way to be and each type has its pros and cons. It’s important to recognise what your tendencies are, though because they have the ability to impact all aspects of your life from relationships to retirement.
Luckily, Ordo can be of help no matter how you feel about money. If you are a methodical saver, a fly by the seat of your pants spender, or even a blissful ostrich, Ordo is easy to use, will save you money on transaction fees, and keep all your payment information organised and ready when you need to refer to it.