Like almost everything else in life, your response to money is dictated by your personality. But have you thought about how your behavior affects your bottom line? Understanding your money personality will help you shape your spending, saving, and investing.

1. Big Spenders

Big spenders love nice cars, new gadgets, and brand-name clothing. People with a "spending" personality type aren't typically bargain shoppers. This often means a desire to have the latest and greatest technology and a beautiful home. When it comes to keeping up with the Joneses, big spenders are the Joneses. They are comfortable spending money, don't fear debt, and often take risks when investing.

2. Savers

Savers are the opposite of big spenders. They turn off the lights when leaving the room, close the refrigerator door quickly to keep in the cold, shop only when necessary, and rarely make purchases with credit cards. They generally have no debt and may be viewed as frugal. Savers are conservative and don't take risks with their investments.

3. Shoppers

Shoppers often develop great emotional satisfaction from spending money. They can't resist spending, even if it's to buy items they don't need. They may be aware of their urge and concerned about the debt that it creates. They look for bargains and are happy when they find them. Shoppers are varied in terms of investing. Some save regularly through 401(k) plans and may even invest a portion of any sudden windfalls to make a purchase.

4. Debtors

Debtors aren't trying to make a statement with their expenditures. They commonly don't spend much time thinking about their money or tracking what they spend and where they spend it. Debtors generally spend more than they earn and are deeply in debt.

5. Investors

Investors are consciously aware of money. They understand their financial situations and try to put their money to work. Regardless of their financial standing, investors tend to seek a day when passive investments will provide sufficient income to cover their bills. Their actions are driven by careful decision-making, and their investments reflect the need to take a certain amount of risk.

Making Changes

Many spenders and savers share parts of all five personality types. After evaluating your habits, here are some tips to help tweak your dominating trait:

• Spenders: Shop a little less and save a little more
• Savers: Use moderation. Sometimes, a saver who is too conservative may be missing out on high-return investments
• Shoppers: Establish a weekly or monthly budget, and don't spend money that you don't have
• Debtors: Evaluate your debt and credit limits and start a saving plan
• Investors: Keep up the good work and stay mindful of long-term goals and opportunities

The Bottom Line

While you may not be able to change your money personality, you can acknowledge it and address the financial challenges that it presents. Managing your money involves self-awareness; knowing where you stand will allow you to modify your behavior to achieve financial goals.