There are a few
Recently I've been noticing how different people seem to think about money. It's really interesting.
Here are some rough categories. Do you know anyone that fits them?
This could also be called the 'miser mindset'. Money is something to be held onto and not spent. People with a scarcity mindset approach to money focus on the price of things and try to reduce their spending. Quality or cost performance don't really matter as much as absolute price. Scarcity mindset people tend to keep money in cash or cash-like instruments and don't 'get' investing -putting money to work.
People with this mindset don't really think about money. It comes, it goes, and there is not much thought put into how to get more or how to spend it more effectively. Investments are mysterious, saving is something that other people do.
These would be people living paycheck to paycheck, who run out of money at the end of the month or overspend on credit.
The wariness mindset makes people scared of money. They find it distasteful or frightening, and are nervous about losing it. 'Safe' options like keeping it at home or in a bank account seem more attractive than investing.
This one is fairly rare. A disgust mindset is based on the perception that money is evil, and people that have money have done distasteful things to get it. There is a purity in poverty and 'honest work'. Income from work or interest from bank accounts is okay, but other forms of income (dividends, capital gains, rents, peer-to-peer lending) are not.
I can sympathize with the disgust mindset, but believe it is a debilitating one, as it prevents you from gaining control over money.
If you find yourself thinking about money every day, you are probably obsessed. I am. I think this could be a phase on the path to mastering your finances. Ideally it's a phase that you will transcend.
A healthy obsession will see you voraciously learn and look for information and advice. An unhealthy one will see you looking at your accounts and spreadsheets all the time.
This is the goal I guess. The mastery mindset is where you are comfortable with money, know how you want to use it and how to manage it, but don't spend a lot of time thinking about it. You have plans and systems in place, and if something changes you know what to do. You understand principles and concepts, and have an effortless understanding of how money fits into your life.
Your money allows you to get on with your life.
So I guess I am in the money obsession mindset at the moment. How about you? Have you noticed any other mindsets we could add to the list?