Five Money Personalities and How They Shape You

I had an interesting conversation the other day. I have two clients in almost identical financial positions.

- Matthew Matthee

We follow the same strategy, and they hold the same portfolio—same asset allocation, same withdrawal rate, similar ages and lifestyle expenses.

The markets took a knock in the wake of Trump's Liberation Day tariffs, and both portfolios dipped for a couple of weeks. One client was visibly upset, and the other barely blinked.

Now, with the rebound we've seen this past month, both clients are considerably better off than before. Their portfolios did the same thing—yet their reactions couldn't have been more different.

The worried client insisted on making changes, while the other stayed the course. The facts and data were the same, but the emotional responses were totally different. And rather than fault either of them, it got me thinking.

We all have our own stories about money. Did we grow up in a household where money was tight or abundant? Who do we live with now, and how do they view financial security?

Most financial decisions are emotional.