How to save according to your personality type

09 December 2021


Jonathan Smith
Jonathan Smith
Friends walk point into a shop window dressed in winter clothing. They are smiling and shopping together

What kind of person are you when it comes to saving? Do you sometimes find it difficult to sleep at night as you’re worried you haven’t saved enough? Or, do you prefer to avoid putting money away in order to take risks?

Wherever your personality sits on the scale, when it comes to saving there simply isn’t a tried and tested method that works for everyone. Understanding how you behave when it comes to money is an important step in shaping a habit that works for you.

In this blog post, we’re going to share some tips that should help you to adapt how you save around your personality type. With a little luck, it’ll help you start a healthy routine.

You’re a worrier

If you get anxious when you think about money, you could be a worrier when it comes to savings. With this personality type, you may lack confidence in your financial future and you might find it hard to relax or sleep due to an incoming bill.

A worrier often does not have the conviction to maintain a foolproof financial status, and will be unduly risk-averse. It’s not uncommon for them to experience panic or stress around key financial decisions and they can end up stuck in an uncomfortable cycle. They may be overprotective of their financial wellbeing and can obsess over errors.

The way forward?

If you’re a worrier, you tend to internalise and dwell on your finances, so it can be of great benefit to get an external perspective. An open and positive discussion with a financial adviser can be a good step, as can taking a financial awareness course to really build confidence. Perhaps opt for an instant access savings account, such as our Instant Saver, so that you can still have peace of mind that you can withdraw your money.

You’re an avoider

If you’re an avoider, you probably bury your head when it comes to your finances, which means that saving is not typically a priority for you. Though ignoring your lack of savings might put off the issue for a while, it doesn’t address the problem in the long term.

The way forward?

For those who prefer to dodge their money problems, adopting a fun and creative way to save can be a good way to stay engaged. For instance, doing a no-spend challenge in a certain area of expense for a week, such as not buying clothes, eating out or drinking alcohol, will free up some money to put into savings.

There is also MoneySavingExpert’s 1p challenge, which is a low-effort way to build up a good starting pot for savings. It’s easy to keep track of and super simple to do.

You’re a compulsive spender

Regularly go on spending splurges with your money or live outside your means? Then you could be a compulsive spender. We can all agree that shopping is fun, especially when you’re treating yourself, but when it becomes a compulsion it can be difficult to get a saving habit going and stick to it.

The way forward?

The most important thing is to gain a measure of control over your spending. One way to do this is to put a percentage of your income into a fixed savings account, like our Fixed Saver. These accounts lock away your funds for a set period of time while they usually benefit from a higher interest rate than regular accounts. This self-imposed financial lockdown will help to curb your compulsive spending and help you save.

You’re a compulsive saver

A compulsive saver is the complete opposite of a compulsive spender, putting every last penny possible into a savings account. This can sometimes be a disadvantage, however, as it can lead them with little disposable income to enjoy life. If you have little funds for the fun things, then you might be putting a bit too much aside for a rainy day.

The way forward?

Being overly frugal can quickly become a burden where every penny is pinched and no room is left for anything else. A healthy balance needs to be struck that allows healthy saving alongside moderate spending. To achieve this, try setting aside some money for spending on yourself each month, then you can treat yourself knowing it’s fully planned.

You’re a risk-taker

Do you believe in “speculating to accumulating” and are willing to put your money on the line at the prospect of greater returns, you may be a risk-taker personality type. This can be bad news for potential savings, however, as there’s always the possibility that a gamble will backfire and you won’t have any funds for the future.

The way forward?

If you regularly find yourself trying to make short-term gains by speculating with your money, you may need to set firmer boundaries and get financial advice to boost stability in your life — therapeutic advice may also be necessary if risk-taking becomes an issue.

Try to be as mindful as possible of your tendencies if you have this type of personality, and take action to make sure you set aside enough funds to maintain stability. Choosing a fixed rate saver is a great idea, as you can lock away essential funds to set a clear stopping point if you feel compelled to take a risk.

You’re a saver-splurger

You’re a saver-splurger if you begin each month with intentions to save, but then find that you’ve spent a bit too much to do so by the end. However, with a little bit more discipline and a new approach, you could probably become a good saver.

The way forward?

Save-splurgers should start with their usual monthly budget, but then drill down further and split it into weekly spending pots. These smaller chunks are easier to manage, so it should be simpler to track spending and saving as the month goes on, ensuring that there are no financial worries before the next payday.