34% of Americans are so stressed about money they’re losing sleep — here’s what the ‘Zen Millionaire’ says might be to blame for putting you in the poorhouse
If you're feeling anxious about your finances, you’re not alone.
According to a recent survey, 90% of Americans say that money is having an impact on their stress levels and 34% are losing sleep over it.
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The study, conducted by Discover and Thrive Global, found that 40% of those surveyed are so stressed, they wish they could push a reset button on their budgets and have a “fresh financial start” entirely.
While times are indeed tough, your relationship with money might be making things a lot worse.
Ken Honda, the best-selling author and “Zen Millionaire,” has spent years studying how people relate to money, and has pinpointed the seven most common personality types. Honda says your money habits say a lot about you — here’s how he says yours might be helping or ruining your financial well-being and what you can do about it.
WATCH NOW: What does your money personality mean for your relationships? Ken Honda shares his insights.
1. The moneymaker
“When you get together with [moneymakers], they always talk about cryptocurrency or whatever the thing is they do,” says Honda. “They love to make money.”
Moneymakers are fueled by external validation. They want approval and recognition from others. In romantic relationships, they’re generally attracted to spenders, which can be a dangerous combination.
How to improve it: If this sounds familiar, you’ll benefit from finding a balance between making and saving money, but also enjoying it. You may find fulfillment by donating to charity or taking up a hobby that doesn’t require money at all.
2. The worrier
This personality feels anxious about finances regardless of how much money they have. Honda says that worriers are generally pessimistic and lack self-confidence.
If this sounds like you, you’re not alone. Many Americans may have this money personality, with the Thrive survey finding that only 25% of those surveyed feel extremely optimistic about their financial futures.
That means the rest of us see the glass as half-empty.
Worriers have a fear about life in general, one that they project onto money. Without addressing what the real route of your fear is, you’ll be unable to make peace with your finances.
How to improve it: Bring a positive perspective when saving money by imagining the fun things you can do with it. You might focus on a vacation you would like to take, or something fun you can do for your family to bring them joy.
3. The compulsive spender
Compulsive spenders, no matter the situation, dispose of their money as quickly as they get it. A 2022 survey by Slickdeals found that 73% of respondents said most of their spending was spontaneous. This was up significantly, from 59% of shoppers who felt that way in 2021.
While there was certainly some “revenge spending” happening in 2022, in his book, "Happy Money: The Japanese Art of Making Peace with Your Money," Honda suggests that this personality's spending habits come out of their need to feel in control, and they often suffer from low self-esteem.
How to improve it: If this feels like you, take time to consider the reasons behind your purchases. Pause for a moment before acquiring things, and ask yourself if you really need it. Question why you’re purchasing something, and if it’s not essential, reconsider buying it.
4. The compulsive saver
These people are the polar opposite of spenders. The saver will take any money they get and immediately stash it away.
It looks like more Americans are prioritizing savings. The national personal savings rate increased to 4.7% in January, which is the highest it has been since February 2022.
Honda writes that savers generally come from households that faced financial troubles. This creates anxiety about money, which prevents them from enjoying things like hobbies.
How to improve it: To overcome this, explore where your fears about money come from. Confronting your anxiety allows you to let go of your fear of losing money, and therefore enjoy a fuller life.
Read more: Boomer's remorse: Here are the top 5 ‘big money’ purchases you’ll (probably) regret in retirement and how to prepare for them
5. The gambler
Whether it’s going to a casino or betting online, gamblers are addicted to the thrill of risk.
The danger gets drowned out by the hope of a big win. About 1% of Americans have a gambling addiction, according to the International Center for Responsible Gaming. While not everyone with this personality has a problem, there are steps you can take to keep it under control.
How to improve it: In order to reset your relationship with money, Honda recommends finding a healthier outlet for your addictive inclinations. Putting your power into a hobby provides a different way of spending your energy. And this will allow you to see the source of your addiction and find a healthier balance in your life.
6. The indifferent-to-money
This personality gets by without giving much thought to money. Honda cites one of his friends as an example.
“He didn't know he lost his wallet for a week,” said Honda. His friend only found out when police returned it.
The indifferent-to-money personality is often regarded as a happy personality, and is generally focused on non-material goods, like academic success.
You may rely on others to take care of financial matters, like letting your spouse take care of your expenses. This can be risky if something happens to your partner, and you’re unsure of how your money is managed.
How to improve it: Start engaging more directly with your accounts, and become aware of where your money is going and how to manage day-to-day financial affairs.
7. The saver-splurger
Honda recognizes that there are grey areas in personality types, and sometimes individuals will demonstrate more than one trait.
The seventh personality he identifies are saver-splurgers. This personality will be highly regimented and serious, but then be prone to impulsive spending.
Honda believes this personality is trying to control their life through their relationship with money.
You can work relentlessly, save your money and then make an extravagant purchase you regret.
“If you’re a spender,” Honda says, “you have the biggest fear of missing out, whereas worriers, they have the same fear but they're worried about money.”
How to improve it: In order to overcome the anxiety you feel related to spending, Honda recommends confronting your fear head on. Identify where your fear comes from, and discover positive ways to face it.
Your money blueprint
In “Happy Money,” Honda argues that your relationship with money is born from how your parents related to their finances, creating a “money blueprint.”
For example, if as a child, your parents told you they couldn’t afford to get you something you want, you may have felt like you aren’t worth it. How you internalize this over time can define your money personality.
But that doesn’t mean you can’t change your habits.
In Honda’s experience, when people worry about money, they are, in fact, worrying about a future without money.
Honda acknowledges that in North America, having open conversations about money with friends and colleagues is a bit taboo. But having a support system of friends and family that you can discuss your finances with lets you discover other perspectives on how to relate to money. Having strong friendships and interpersonal relationships is one way you can achieve a healthier relationship with your finances.
If you learn to be vulnerable and ask for help when it comes to your issues, you can reduce your anxiety and stress and gain more control over your money, instead of letting it control you.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
