Do you have a bad relationship with money?

That quote hit me so hard that it inspired me to write an entire newsletter about the lessons I’m learning in this book.

What if I told you, money is a game?
How well do you play now? Would you consider yourself to be winning?

“Winning” is not how well you do financially—it’s how good you feel about playing.

Are you happy with your financial situation right now?
Do you feel blessed and energized about life when you think of money? Or do you feel frustrated?

Your relationship with money shows itself in a pattern. If you’ve never been taught about how to actually work with money, you’ll likely fall into one of eight common pattern types.

Knowing your pattern helps you understand why you do the things you do.

The first step to creating a healthier relationship with money is to take an honest look at the map and acknowledge where you’re standing right now.

So, let’s look at Honda’s 8 Money Personality Types, and then a recommended action for each one.

1. Compulsive Saver (Stockpiler)

• LOVES saving money. If they saw money on the street, they’d pick it up and put it directly into their piggy bank.

• Believes saving money is the best way to guarantee a sense of security in life.

• Usually experts on bargain shopping and could give anyone advice on which phone company is the cheapest and which points cards are worth it.

• Hobbies and routines often don’t cost any money.

Backstory: Most Stockpilers have bad memories and fears around money from their childhood. They often grew up in a house without much money, and have a deep-down determination to not turn out the same way. However, they often don’t even know exactly when these fears began to take control.

Recommendation: If this is you, take this as your sign to finally confront your anxieties about money. Write down 10 memories from your childhood related to money, and see if you can pinpoint when you developed money anxiety.
Then, set yourself an enjoyment budget. Every month, allot 5-10% of your monthly income to activities or experiences that you enjoy.

2. Compulsive Spender (Spendthrift)

• LOVES spending money. If they saw money on the sidewalk, they’d take it straight to the nearest vending machine and enjoy a free drink.

• Fun to be around and have a YOLO way of being.

• Believes the reason for the economic downturn is that people have stopped spending money, so they feel a sense of pride by “helping the economy.”

• Spends money to feel more in control. Think about when you’re purchasing something at a store, and the attendant listens attentively to everything you say. This gives Spendthrifts a sense of self-respect or recognition that they might not get in other areas of life.

• Often have low self-esteem and use the thrill of buying to brighten up their mood. Unfortunately, many Spendthrifts don’t truly enjoy the things they buy.

Backstory: in most cases, they were brought up by Compulsive Savers. The way they spend becomes a judgement of or reaction to the boredom they felt with parents who enforced conservative spending.

Recommendation: if this sounds like you, the next step is to set a monthly budget. Add up all your essentials costs for the month, then add 10% of that to put in a savings account, and another 10% for fun spending. This is your total monthly budget.

Example:

This doesn’t mean you’re locked into this forever, but a common problem that Spendthrifts run into is spending more than they earn. So, setting a monthly budget is a good way to start noticing your spending habits.

3. Compulsive Moneymaker

• Believes life works best when they’re earning as much money as possible. If they found money on the sidewalk, they’d say it was proof that Lady Luck exists and she’s always on their side.

• Spends the majority of their energy on their ability to make more money.

• Doesn’t feel guilty about choosing to focus on work efficiency or time management skills over spending time with friends or family. This is partly because they truly believe that everything they’re doing is for the sake of their families.

Backstory: Compulsive Moneymakers live off of approval and recognition from others for their financial success. If this sounds like you, know that you’ll never stop craving more of that attention—no matter how much money you make—until you recognize the value in your life that has nothing to do with making money.

Recommendation: A really underrated starting point is to write down three things you’re grateful for each day that aren’t related to money or work.

The next step is to seek fulfillment. Volunteer some of your time to something you’re passionate about to gain a sense of purpose and achievement beyond financial success.

4. Indifferent-to-Money Type

• Hardly realizes that money exists. If they found a dollar on the street, they’re likely to pass over it without even noticing.

• Typically found among professors, teachers, public servants, doctors, artists, researchers, and homemakers.

• Daily life might look like waking up, taking their lunch with them on the train to work, then spending the day focused on tasks before returning home.

• Often leaves money managing up to a partner or spouse, to the point of being unsure how much they really have or where important financial documents are.

Backstory: Being quite well-off is a common characteristic for this type. They were probably financially comfortable as children, so never had to give money much thought. Therefore, this person is generally content in life — until their money-manager isn’t around…

Recommendation: Ask yourself, if you were suddenly thrusted into having to be responsible for your household’s accounting — would you even know where to start?
Do you know how much money comes in and out of your accounts every month? Do you know where you keep important documents? Do you know where your wallet is right now?

The idea here isn’t to turn you into a Compulsive Moneymaker, but to just get you familiar with your money movements so you can make informed decisions.

5. Hippie

• Basically thinks that money is a bad thing. If they found a dollar on the street, they’d instinctively give it to charity or put it toward a necessity.

• Tends to view money as a source of problems.

• Wishes the world could be less about making money and consumerism. They often reject the idea of “selling out” or selling themselves for a price.

• Wants to live a life that’s as little affected by money as possible.

Backstory: It’s common that these personalities grew up witnessing the negative effects of materialism, such as environmental harm or social inequality. This has caused them to view money as a source of problems.

Recommendation: It’s time to redefine money’s role in your life and start viewing it as a tool for achieving goals and supporting causes you care about rather than a problem-causer.

For one month, keep a journal of every dollar you spend and how you felt about each purchase. Review it after 30 days to pinpoint negative patterns and triggers. This will help you become more conscious of your spending habits, and begin to reshape your relationship with money by aligning it more with your values.

6. Saver-Splurger

• A combination of saver and spender.

• Usually quite regimented and serious, but will suddenly feel compelled to do something to use their money.

• Tries to control their life through the saving of money.

• Goes through life, saving diligently, but then the pendulum swings from saver to spender. They use their savings on things they don’t really need — like buying a car even though they don’t have a license. They might say, “It was going for a great price, so I figured I’d just buy it now. I was thinking of getting my license soon anyway.”

Backstory: These personality types often faced early financial instability. This led them to seek control through saving, but they sometimes splurge as a way to relieve stress or reward themselves.

Recommendation: Start by creating a budget plan (as we did with the Spendthrifts) and developing a couple financial goals.

Then start implementing a 48-hour waiting period before making any purchase. This gives you time to evaluate on if this purchase is really necessary and aligns with your long-term goals for yourself.

7. Gambler

• A combination of the Compulsive Moneymaker and the Spendthrift.

• Likes excitement and seeks thrills.

• Their end goals are not to increase their assets, although they may be convinced that they are.

• Tends to get lost in the thrill of risk and promise of reward

• Gets excited by commodity trading and venture capital, and finds routine and consistency very boring.

Backstory: These personalities are often raised by the Compulsive Saver type. The boredom of living with parents who were tight with money can lead a child to become the Spendthrift or the Gambler — which are at higher risk of experiencing major financial losses.

Recommendation: It’s crucial to acknowledge when you’re spending money for a specific goal VS a thrill. Start with the Spendthrift budget tip, then practice setting limits.

Every time you’re planning on risking money in high-stakes activities like trading or venture capital — look at your bank accounts and define a clear limit that you’re willing to risk. This will help balance satisfying your need for excitement while protecting your savings and investments.

8. Worrier

• Always worried about money, regardless of how much they have. When they’re in a stable financial place, they worry about losing their money. When they don’t have money, they worry about not having it.

• Do not trust life, and tend to expect that the future will bring problems.

• Second guesses their potential. They lack self-esteem and the basic confidence required to execute tasks.

Backstory: It’s important to mention that this type of worry is not directly linked to money. Rather, fear of life in general is being projected onto money. As long as these fears go unresolved, concerns about money will never subside.

Recommendation: educate yourself about two very important things:

1. YOU: Seek professional help to better understand why you feel so attached to worrying. Understanding how your unique brain works is a skill that will help anyone more forward more happily in life.

2. Money: Take a personal finance course or watch educational content like the Dave Ramsey Show to feel more empowered when making financial decisions.

Many money mistakes are related to emotions. You can be the smartest person in the world, but if you don’t have a handle on your emotions and how they affect your behaviour, it’s impossible to make good, clear decisions related to money.

Share this email with someone you think could benefit from it, and talk to them about which personality type you think you fit in.

If you’ve made it this far, take a second to be proud of yourself. The only way we grow and evolve in this game we call life is by being openminded enough to want to learn.

Keep going. Keep growing!

If you’re committed to the journey of…
growing every day
to become your ideal self
and making this life an exciting adventure
through business, fitness, and relationships
join other inspired idiots like you!