What Your MBTI Type Says About Your Money Habits

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People personality affects that money habits such can be seen with two friends out shopping

Money plays such an intricate part in our lives that we tend to build habits around it. Thus, knowing our personality type could be the key to building healthy financial habits. The Myers-Briggs Type Indicator (MBTI) measures our personality along four axes: Extraversion vs introversion; sensing vs intuition; thinking vs feeling; and judging vs perceiving. The results for the 4 axes are combined, resulting in one of 16 possible MBTI types. Let’s take a look at what those 16 personalities say about the way we handle money.

Extraversion vs Introversion

The first axis in the MBTI is labelled Extraversion – Introversion, or the E-I pair. It describes how each of us sources our energy. If you tend to become energised the more you interact with people, you probably fall towards the E end of the scale. Conversely, introverts regularly need to spend time by themselves to ponder and reflect, recharging themselves in the process.

Money traits of E-I

Because of their sociable nature, Extraverts can find themselves splurging on social activities, pulling out all the stops for their annual vacation with friends. This can lead to regrettable impulse buys, and even credit card debt and little to no savings.

Introverts – a personality type that relies mostly on their own judgment – tends to take too narrow a view, which can cause them to miss out on good financial opportunities. They could also be locked into a repeating pattern of sub-optimal purchases or investments because they simply lacked a different viewpoint.

Both Extraverts and Introverts would benefit from seeking the advice of trusted close friends when making important money decisions. Doing so will give Extraverts a chance to lay out and examine their thoughts – thus saving themselves from risky or wasteful purchases. Meanwhile, Introverts will benefit from alternative viewpoints they may not have considered on their own.

Sensing vs Intuition

A zoom-in on a woman using her smartphone and credit card to manage her money habits

This next axis – aka the S-N (N for iNtuition) pair – describes how you take in information and how you arrive at conclusions. People who fall on the S end of the axis tend to seek information that is detailed, specific and sequential. Conversely, people who fall on the N end of the axis tend to display a preference for the ‘big picture’, so they can work out what it all means for themselves.

Money traits of S-N

Sensers often display a knack for managing detailed data, which means they are most often the one who remembers what each person ordered at dinner, and what they owe. However, it is this hyper-focus on details that can cause them trouble.

Extraverted Sensers tend to have a “right here-right now” approach towards money, which means they can have trouble seeing how their money decisions affect long-term plans. Introverted Sensers might become too invested in their own data, becoming unable to consider alternative ideas. This can prevent them from making meaningful progress towards their money goals.

People falling on the N end of the scale have no trouble coming up with future financial goals – but they might flounder in how to get there. If this describes you, grab your Senser friend and sit down together to work out a detailed plan.

Thinking vs Feeling

The third axis – or the T-F pair – describes how you evaluate the information you receive. People who are Thinkers tend to think about the task at hand. The decisions they come up with are often objective and logical. Feelers are aware of how their decisions and actions affect the people around them. As such, they tend to weigh their choices against the possible consequences on others.

Money traits of T-F

Thinkers are rational. Although this is generally good, Thinkers might find themselves over-analysing even small financial decisions. They could also end up delaying or sacrificing personal financial goals.

The trick, then, is to give yourself regular opportunities to do what you feel like doing, instead of what you think you should do.

Because Feelers place other’s feelings highly, they may run the risk of making bad financial decisions just to please others. Or, they may let their emotions override logic – which can lead to some questionable financial choices.

Feelers should regularly challenge their money decisions, perhaps by seeking out logical arguments for and against. They could also practice making Pros vs Cons lists.

Judging vs Perceiving

A group of young professional discussing with sticky notes on a glass, judging and perceiving the solutions

The fourth and final axis – the J-P pair – is concerned with how we organise the world. People tend to fall into two camps: those who seek definite answers, and those who prefer open-ended ones.

People who are Judges like closure. They like making decisions, and would happily tick things off as they go through their To-Do list. Those who are Perceivers prefer not to rush into decisions. This personality type is more comfortable with leaving things open-ended, and tend to take a more spontaneous approach to life.

Money traits of J-P

Because Judges feel a sense of satisfaction from closure, they are also prone to rushing into decisions – even if they do not have the full picture.

Restraint is the name of the game here – waiting even a day or two could allow you the time to reconsider a risky investment.

If Judges tend to make decisions too quickly, then Perceivers tend to do so too slowly. Because of their more casual and flexible attitude, Perceivers tend to drag their feet when it comes to financial matters. This could cause them to miss good opportunities, or worse, never get down to putting important money matters in place.

The solution? Try setting more boundaries around important topics, such as a deadline by which to make a decision or take action.


This article is contributed by Singsaver. All information is correct as at the date of publication on 26 February 2020. For more information, please visit here.



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