How your money personality can affect your finances

Discovering what money personality you are can make it easier to put financial plans in place.

The way you think about money could have a big impact on how much, or how little you have in the bank.

Financial psychologist Dr Brad Klontz believes your thoughts about money play a big role in your overall financial health.

"If you're feeling bad about money, don't let shame keep you stuck," he said.

"Your financial problems will make perfect sense if you understand how you think."

Financial psychology is a hybrid of financial planning and psychology and is popular in the United States.

Dr Klontz places people into one of four different money psychology groups — find out below which personality type you are.

Money avoidant

If you relate to the following statements about money:

1. I don't deserve a lot of money when others have less than me
2. Rich people are greedy
3. It is not okay to have more than you need
4. People get rich by taking advantage of others

You are MONEY AVOIDANT

Money avoiders give money away in an unconscious effort to have as little as possible, ignore bank statements, struggle sticking to a budget and are at risk of overspending and hoarding.

"They sabotage their own financial success because they have a negative association with money and being a good person," Dr Klontz said.

Money worshipper

If you relate to the following statements about money:

1. More money will make you happier
2. You can never have enough money
3. Money could solve all my problems, no matter how big or small
4. Money buys freedom

You are a MONEY WORSHIPPER

Money worshipers often overspend or overwork in an effort to find happiness or a sense of fulfilment.

They are more likely to have lower income, credit card debt, spend compulsively, hoard possession and put work ahead of family.

"They are often after more stuff to make themselves happier and the latest purchase or raise does not fundamentally change how you feel on the inside," Dr Klontz said.

Money status seeker

If you relate to the following statements about money:

1. I will not buy something unless its new
2. Your self-worth equals your net-worth
3. Poor people are lazy
4. If something is not considered the 'best', it is not worth buying

You are a MONEY STATUS SEEKER

This group tend to over spend money on things to raise their social status.

"They usually say they make more than they do and they want to buy things brand new that are flashy so they can tell the world that they are important," Dr Klontz said.

Money status personality traits include a tendency to be compulsive spenders, gamblers and lie to their spouses about spending.

Money vigilant

If you relate to the following statements about money:

1. It is important to save for a rainy day
2. You should always look for the best deal, even if it takes time
3. If you can't pay cash for something, you should not buy it
4. I would be a nervous wreck if I did not have an emergency fund

You are MONEY VIGILANT

Dr Klontz said the money vigilant are often frugal, nervous if they don't have enough saved for the future and live more modestly.

"They recognise that sometimes people look down on people that have more so they also downplay how much money they make when socialising … they are the opposite to the money seeker," he added.

The money vigilant are often alert, watchful, believe it's important to save and are less likely to buy on credit.

Hear more ways to organise your finances with the ABC podcast The Pineapple Project available on the ABC Listen app or wherever you find your favourite podcasts.