“That sounds expensive...”

The only thing we love more than money is avoiding it.

We each have a unique way we self-sabotage our finances, but I’ve found we generally fall into 1 of 6 buckets.

This Money Personality series is going to explore each one. We’ll cover:

• What this personality is like

• How it’s impacted by the money foundation you grew up with

• Actions you can take to fight your worst money habits

This week, let’s meet The Scrimper.

This week, meet:

➡️ The Scrimper
➡️ The Foundation
➡️ The Way Out

The Scrimper

Type: The Scrimper

Money Philosophy: Extreme Frugality

The Scrimper responds to the existence of money with frugality. If money is a game, the Scrimper doesn’t want to risk losing. They spend on nothing; they want nothing; they restrict always. The solution to not wanting to think about your finances? Simply don’t spend money.

What you’ll catch the Scrimper saying:

• “Hey, don’t waste that!”

• “Thanks but no thanks, I don’t want to spend any money.”

• “I don’t need a new one, what I have is fine.”

• “That sounds expensive, I’ll pass.”

• “We could make that at home.”

• “I can do without.”

The foundation

There are also 6 Money Foundations.

This is what you watched happening with money in your family growing up — and more importantly, how that’s shaped you as an adult.

The thing is, the 6 personalities don’t each have a corresponding foundation.

It’s not a prescription (ie, you grew up THIS way, so you were bound to turn out THAT way as an adult). But it’s more like a motivation (ie, you grew up this way, and that informs why you turned out the way you did).

So let’s look at the 6 Money Foundations AND how a Sleeper could spring from each one.

Finish the sentence:

Growing up, money was…

1. Fun, because we had plenty.

   Reality slapped the Scrimper in the face as an adult. After an upbringing of excess, they swung the pendulum in the other direction now that it’s their own money on the line.

2. Scarce, because we didn’t have a lot.

   The Scrimper embraces the frugality of their childhood. Scrimping is what they’ve always known, so they don’t have a way of expanding their money lens beyond that.

3. Elusive, because my family was bad with it.

   The Scrimper suffered from others’ poor money decisions, and they’ve vowed to not be put in that position again. And for the Scrimper, not spending money = being good with money.

4. Stressful, because it caused a lot of fights.

   The Scrimper who saw money as a source of conflict wants to do what they can to remove money from the equation altogether. A Scrimper’s policy is, we do not spend; therefore, we can pretend money does not impact us.

5. Encouraged, it was a game to be played, a reward to be won.

   This Scrimper likely tends toward money-hoarding more than others. It’s not about frugality as a solution to life’s problems; it’s about watching that bank account number get higher and higher as you save.

6. I don’t know. We didn’t talk about it.

   If no one taught the Scrimper about money, they’ve figured out on their own that the more frugal they are, the less they have to actually pay attention to their finances.

The way out

Honestly, if you’re a Scrimper, you’re probably better off than most of us. Best case scenario, the Scrimper has slowly hoarded up a little pile of money. You have no particular plan for it, but feel you’re doing something right by putting away “for a rainy day.”

Worst case scenario, you still find yourself in a tortuous paycheck to paycheck cycle, despite bringing a restriction mindset to every area of your finances. The Scrimper has a “three steps forward, two steps back” experience with finances, which only re-confirms the worldview of frugality.

Either way, blind restriction is never a healthy thing. In an attempt to ignore money, the Scrimper hyper-fixates on it. Too much emphasis on frugality keeps you from enjoying money. Here’s how the Scrimper can start to overcome this.

Action: The Scrimper should track their income and expenses. NOT to pore over the details, but rather to see the big picture.

Frugality isn’t inherently bad — in fact, most money personality types would benefit from taking a page from the Scrimper’s book. But it’s important to be able to rationalize that frugality, and, more importantly, to let go of the irrational aspects of it.

Once you track your expenses as a Scrimper, you can look at the big picture via a percentage breakdown:

• What are you actually earning monthly?

• What are you spending?

• What’s “leftover”?

• What are you spending on necessities?

• What are you spending on wants?

• What are you saving – and is that money in an account that accrues interest?

The point of money is to USE IT. Once you learn a way to effectively balance using & enjoying money and saving & investing money, you’ll be on the right track.

“Wait, I need MORE”

A couple things happening in the Meet Your Money world:

• More budget breakdowns and real talk on finances here on the newsletter & on socials. Completely free, always.

• Budget Club. Twice monthly. Currently at my house. With my friends. You’re not invited. (I hope to make this a recurring, free, online event soon… Stay tuned!)

• And coming soon — templates and 1:1 consulting time for those who need a little extra nudge.