money mistakes to avoid

The Most Common Money Mistakes To Avoid Based On The 5 Money Personalities

Laura Vanderkam, Verily contributor and author of All the Money in the World: What the Happiest People Know About Wealth, wrote an incredible article about common money mistakes to avoid, based on the 5 Money Personalities!  Here it is!  Enjoy!

Everyone has his or her own unique way of thinking about and dealing with money. The Money Couple, Bethany and Scott Palmer, financial advisors and authors of The 5 Money Personalities: Speaking the Same Love and Money Language, say these ideas are what make up one’s Money Personality (they have a 15-minute quiz on their site to identify your primary and secondary personalities, which are both at play in how you approach your finances).

But even without taking the quiz, it’s helpful to know how our attitude toward money can help—and more importantly, hinder—our long-term financial goals. Here’s how to avoid the financial faux pas you’re most likely to make based on your Money Personalities.

THE SAVER

Savers get a rush from a deal and take pride in spending less than someone else for what they want. That doesn’t necessarily mean that they’re cheapskates—they just like knowing that they didn’t pay full price for the same trendy handbag. Your friend who only shops the sales, or your aunt who clips coupons like it’s her job? They’re probably Savers.

That impulse to save means that savers usually don’t spend impulsively—although a good deal might incentivize them—and since they’re conscientious about their spending they’re usually trustworthy with their cash. That doesn’t mean that Savers are always making great holistic decisions though. Their love of a deal can still lead to unnecessary spending (I mean, who hasn’t regretted an impulse “cheap” sale purchase?), and they may seek overly safe investments rather than focusing on growth when they should.

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