Understanding seven cash personalities can unlock a affluent future

  • What makes somebody good at managing their cash? 
  • Understanding what is named your ‘cash character’ is commonly ignored
  • Your cash character is the way you work together with it – whether or not you splurge or save

What makes somebody good at managing their cash? Sure, it includes maintaining a price range, understanding how finance works and realizing methods to make it. But a rising variety of monetary specialists imagine that is solely half the battle. Understanding what is named your ‘cash character’ is simply as essential – and but it’s typically ignored.

Your cash character is the way you work together with it – whether or not, for instance, you are inclined to splurge or save militantly, do not care about cash or fear about it on a regular basis. These attitudes to cash are sometimes instilled in us from the tales that we’ve got heard about it via childhood and all through our lives.

For instance, we might have skilled shortage or seen cash used to specific love, or come to affiliate it with standing. These deep-seated attitudes have an effect on all of our interactions with cash, from how simple we discover it to save lots of, as to if we spend on the issues that matter to us or fritter it away.

Ken Honda, a monetary planner, cash guru and bestselling writer of Happy Money: The Japanese Art Of Making Peace With Your Money, is one in all a number of monetary specialists who’ve recognized an inventory of cash character sorts that all of us fall into. Here, Wealth & Personal Finance investigates his seven Money Personalities and asks specialists their ideas for managing your wealth relying on which you most determine with. Honda’s guide additionally has many extra concepts about exploring your cash character.

Remember that you’re prone to show attributes of multiple – and your cash character might change over time and in numerous circumstances. They aren’t designed to be prescriptive or inevitable. Rather than being fatalistic and resigning your self to a sure cash character, they are often helpful to assist analyse your individual behaviours and alter these holding you again.

Important: Your money personality is how you interact with it ¿ whether, for example, you tend to splurge or save militantly, don't care about money or worry about it all the time

Important: Your cash character is the way you work together with it – whether or not, for instance, you are inclined to splurge or save militantly, do not care about cash or fear about it on a regular basis

As main monetary wellbeing professional Jason Butler places it: ‘Money personalities do not outline us, however they may also help us perceive why we do issues and what we will do to vary it.’

Shah Abbasi, at cash coach Octopus Money, believes that understanding cash personalities of your family members may also assist construct concord. ‘There’s a lot friction in relationships with regards to cash,’ he says. ‘I feel so many {couples} would align a lot better on how they view their funds in the event that they took the time to grasp and share their cash personalities.’

So, listed below are the seven cash personalities. Which are you?

Compulsive Saver

Do you’re keen on discovering a cut price and get a thrill once you verify your financial savings account and see it steadily rising in worth? If so, you would be a compulsive saver. This character sort typically has unhealthy reminiscences about cash – or a scarcity of it – from their childhood, and see saving cash as key to making sure they by no means expertise the identical once more.

Expert ideas

1) Have a monetary plan and price range. Alistair Ford, Money Coach at Octopus Money, says: ‘People can turn out to be Compulsive Savers as a result of they do not know how a lot cash they should obtain their monetary objectives. They wish to keep away from overspending, however with no body of reference, they find yourself avoiding spending in any respect. A monetary plan and supporting price range could be liberating, as they typically discover they’ve extra capability to spend than they thought and might accomplish that with out concern that they are compromising their long-term objectives.’

2) Make certain you are saving tax- free. If you might be stashing cash into an everyday financial savings account, you danger breaching your Personal Savings Allowance, which limits the quantity of curiosity you’ll be able to earn tax-free to £1,000 for fundamental fee and £500 for larger fee taxpayers. Alice Haine, at funding platform Bestinvest by Evelyn Partners, says: ‘Make certain you employ your Isa allowance to maintain your financial savings curiosity tax free.’

3) Make your cash work laborious. Haine says: ‘Money held in a low-rate financial savings account will not be delivering an satisfactory return so looking out a greater financial savings fee or contemplating whether or not a few of that cash may work even more durable invested over the long run via a Stocks & Shares Isa is essential.’

Compulsive Spender

Do you take pleasure in splashing the money and stay by the spending philosophy that ‘you’ll be able to’t take it with you?’ If so, it’s possible you’ll be a Compulsive Spender.

This character tends to spend to really feel extra management over their environment, or maybe a way of self-respect or value.

According to Ken Honda, Compulsive Spenders are sometimes the kids of Compulsive Savers, and their angle to cash is available in response to enforced frugality or judgments about spending.

Expert ideas

1) Wait for a set interval earlier than spending. Shah Abbasi recommends a trick for Compulsive Spenders. Set a rule the place you wait a sure period of time earlier than shopping for one thing in order to create a time hole between the preliminary urge to buy and really spending the cash. This may also help forestall making reactive, emotional spending selections with out giving it some thought.’

2) Don’t retailer your card particulars with on-line retailers. Creating friction within the buying course of may also help sluggish you down and provides time to contemplate whether or not it’s actually value it. Being pressured to enter your financial institution particulars, relatively than having them saved, may also help, says Abbasi.

3) Create a price range that balances spending with saving objectives. Megan Rimmer, chartered monetary planner at Quilter Cheviot, says: ‘This may also help Compulsive Spenders to take pleasure in the very best of each worlds with out compromising their monetary future.’

Compulsive Moneymaker

Do you spend numerous your power bettering your means to earn more money and really feel little guilt over prioritising work? If so, take into account your self a Compulsive Moneymaker.

People with this trait are inclined to feed off the response of others to their monetary success, says Ken Honda. However, no sum of money will likely be sufficient for them to cease in search of that recognition.

Expert ideas

1) Work out what you make cash for. Abbasi recommends having milestones for what you do along with your cash – relatively than merely making as a lot as attainable. ‘Money would not make you content, it is all about what you do with it,’ he says.

‘If what you do with the cash has no goal (or you do not have a goal) it’s possible you’ll by no means assume you’ve gotten sufficient.

‘If you are prioritising getting cash over every little thing else, it’s essential proactively give your self a while to prioritise what to do with it.’

2) Make certain your wealth is balanced. Moneymakers could also be ready to tackle extra danger, however they need to consider carefully first, warns Haine. ‘Piling all of your cash into dangerous belongings within the hope of creating a fast return might not repay,’ she provides.

Indifferent to Money

Do you simply get on with life as if cash isn’t an essential issue? You want cash to stay, however do not spend a lot time regarding your self with managing it or considering an excessive amount of about it.

Indifferent to Money persons are additionally prone to go away checking out the funds to another person, akin to their partner.

This angle is innocent till it is not. In different phrases, when you have sufficient cash to not have to fret – or have somebody succesful whom you’ll be able to belief to supervise yours, then you definately’re high quality. But as quickly as issues go improper or the individual on whom you rely is not out there or falls quick, you are in hassle. People with this character sort are inclined to have had a reasonably financially snug upbringing, says Ken Honda.

Expert ideas

1) Check in along with your cash. Emma Gosling, Money Coach at Octopus Money, says: ‘If you do not interact with cash, do not anticipate it to have interaction with you. Dealing with cash is a bit like having a relationship – when you ignore your companion, you are not prone to develop a helpful two-way relationship.’

2) Make certain your cash is working laborious for you. If you might be detached, you will not be getting the very best offers in your financial savings. Haine advises checking whether or not there are higher choices.

3) Learn the fundamentals of private finance and saving. Megan Rimmer, chartered monetary planner at Quilter Cheviot, says: ‘What must be made clear for this character sort is that doing nothing can also be a alternative that has ramifications. A nudge in the direction of understanding the fundamentals of private finance can rework indifference into proactive monetary well being.’


Are you fairly a conscientious saver – however then immediately get the urge to splash out? Then you could be a Saver-Splurger.

People with this character are inclined to fastidiously save to carry management to their lives, however intermittently their management cracks and so they spend dramatically. The drawback is that once they do splash out, they typically make poor, spontaneous selections and find yourself regretting it.

Expert ideas

1) Budget gently. Leading monetary wellbeing professional Jason Butler says that Saver-Splurgers comply with related behaviours to individuals who eating regimen strictly after which go berserk on treats, or train fanatics who fall off the wagon after which do not work out for days.

He says the secret’s to not have such a decent price range that you simply danger giving up. ‘Don’t oversave,’ he says. ‘If you assume you’ll be able to put apart £100 each month, put £30 in an account that’s laborious to entry and £70 in a separate account that you may get to if it’s essential.’

2) Plan for spontaneous spending. Butler provides: ‘Don’t determine to chop out splurging fully, however do it thoughtfully. For instance, put apart a set price range each month for occurring an evening out with associates or treating your self to one thing you’ve gotten your eye on.’

3) Start small and construct. ‘Learning your spending mentality and altering it isn’t simple,’ says Butler. ‘Do it progressively and recurrently and do not turn out to be dispirited when you do not do it completely – when you’re not making errors, you are not studying.’


Do you search thrills and are prepared to take huge dangers? If so, you would be a Gambler.

This character sort typically convinces themselves that they’re taking dangers to develop their belongings, when really they’re simply getting caught up within the thrill of the chance taking itself, says Ken Honda. He provides that the Gambler typically seems as a mix of Compulsive Moneymaker and Compulsive Spender.

Expert ideas

1) Understand the dangers. ‘Taking dangers isn’t a nasty factor,’ says Haine. ‘But it is essential to grasp the dangers, as if you do not know what you are doing, you are playing.’

2) Know your life stage. The stakes will range relying in your age and life stage, so you’ll have to reasonable your danger taking at completely different factors in your life, says Haine. ‘Someone of their 70s with a assured revenue and more cash than they want is healthier positioned to tackle danger in comparison with somebody of their 40s making an attempt to get wealthy fast,’ she says.

3) Find methods to sate your danger urge for food. Rimmer says that this character sort ought to assemble a well-diversified portfolio to search out methods to fulfill their style for danger, whereas safeguarding towards potential losses. ‘Be on guard, too, towards monetary scams because the lure of an unbelievable return can show an excessive amount of,’ she provides.


Do you fret about cash no matter how a lot you’ve gotten? Then you match the character sort of the Worrier.

This form of worrying tends to not be restricted to cash however concern about life on the whole is solely projected on to interactions with cash.

Expert ideas

1) Learn about cash. Money worriers typically accomplish that as a result of they do not perceive the way it works, for instance how investing works or how they’ll obtain their monetary objectives. ‘Seeking steerage, for instance from a monetary coach, may also help unpack these considerations and assist make knowledgeable selections,’ says Haine.

2) Write an inventory of the methods you might be good with cash. Stacey Lowman, monetary coach at Claro Wellbeing, says that cash worriers are inclined to lack confidence and suggests making an inventory of how they’re good with it could possibly assist.

‘For instance, when you have prevented getting in to debt or verify your balances recurrently,’ she says, ‘the checklist will give proof that you may be good with cash, which can assist handle your fears.’

3) Carve out somewhat cash in your price range to do one thing enjoyable. Lowman provides: ‘Giving your self somewhat enjoyment with an sum of money you are snug with, with none unfavorable penalties, might assist to allow you to loosen up somewhat and see that allocating each penny to a goal is not all the time a useful technique.’