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girl holds a wallet in her hands and counts the dollars in it before shopping. She thinks about money philosophies

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There are some people who just seem to be great with money. They always have plenty stocked away, have several streams of income and seem in command of their finances. Then there are those who struggle with finances. They’ve lived a paycheck-to-paycheck life for as long as you can remember, always need to borrow money from friends and family, and are constantly paying down some debt. Maybe you know someone like this – maybe you are someone like this. Why do some people just do well with money while others flounder?

It goes without saying that there are certain things beyond one’s control. Some people are born into  wealth and stability. Others might inherit debt or poor money practices. But then, removing all external factors, there is one major thing that will define the place money holds in your life: your own financial philosophy.

Perhaps you didn’t know that was even a thing. Experts have identified four main money philosophies. Can you spot which one best describes you?


Money Avoidance

Young woman doing online Christmas shopping

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The simplest way to describe money-avoidant individuals is that they think money is “bad.” In a world that can lean materialistic, being money-avoidant almost seems like a good thing. But it has its pitfalls. Money-avoidant people often do not want to have credit cards and avoid spending money – including on necessary purchases.

Research reported on Science Direct originally published in the Journal of Economic Psychology shows that money avoidance often stems from financial scarcity. In other words, growing up with little money could lead someone to be money avoidant. Ironically, it can also cause financial scarcity aka money-avoidant adults tend to have low incomes. Research also shows that money-avoidant individuals tend to be young and single. Translation: building a family and getting older tends to show money-avoidant individuals that money can be a good thing.

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