The 4 Types of Money Personalities

Whether you’re an Ortho Bro, Neuro Nerd, or Derm Diva, the way you think about money reveals a lot about your financial habits.

Today, we're breaking down the four money personalities introduced by personal finance expert Ramit Sethi—an insightful way to understand and address poor financial habits.

Let’s dive in.

^{Disclaimer: This is for informational purposes only and not intended as financial advice. Please consult qualified financial professionals for advice specific to your situation.}

The Four Money Personalities

Money management is deeply personal. Shaped by childhood lessons and our unique quirks, our approach to money influences many aspects of life—especially the careers we choose.

While the following personalities don’t represent the full spectrum of how we manage money, I think they track pretty well.

Sure, they’re reductive and simplistic. You’ll likely be a mix of two.

However, once you understand which one(s) you are and the tendencies that come with it, they’ll help clarify how to get started on a path to better money management.

So which one are you?

1. The Dreamer

Characteristics:

• Aspirational about money but often lacks concrete action

• Loves imagining financial success but struggles with implementation

• Typically seeks out get rich quick schemes or more opportunities to create income

In Medicine:

You're the resident who talks about opening a private practice, but haven’t opened a Roth IRA yet. You dream of paying off your loans quickly but haven't researched repayment strategies.

Action Steps:

• Set one concrete financial goal this month (e.g., open a retirement account)

• Create a realistic budget that includes loan repayment and saving

For what it’s worth, I don’t think many medical professionals are of the Dreamer type.

Typically, this crowd is more focused on optimization or avoids discussing money.

2. The Optimizer

Characteristics:

• Strategic, detail-oriented

• Loves researching best strategies, comparing options

• Typically lives in spreadsheets and credit card point websites

In Medicine:

You're meticulously comparing loan repayment plans and investment platforms. You know the best travel cards, the merits of a Roth investing and know about r/FIRE or r/churning.

Action Steps:

• Use your research skills to maximize tax deductions (e.g., work-related expenses, student loan interest); maybe plan a nice trip for yourself

• Apply optimization skills to negotiate your first attending contract

3. The Avoider

Characteristics:

• Uncomfortable discussing money

• Procrastinates financial decisions

In Medicine:

You might not open emails about student loans. You put off setting up retirement or savings accounts, despite knowing their importance.

Action Steps:

• Set up automatic contributions to a retirement account

• Schedule a "money date" with yourself monthly to review finances

4. The Worrier

Characteristics:

• Constantly anxious about money

• Experiences significant stress around finances

• Typically checks every dollar spent

In Medicine:

You're always stressed about cashflow. You worry about making the "perfect" financial choice, leading to analysis paralysis.

Action Steps:

• Educate yourself on income-driven repayment plans to ease loan anxiety

• Start small: contribute even $50/month to retirement or investing accounts to build confidence

Tailoring Financial Strategies to Your Money Personality

Regardless of your money personality, here are some key strategies for medical trainees:

1. Tax Optimization:

   • Deduct work-related expenses (e.g., licensing fees, board exam costs)

   • Contribute to pre-tax retirement accounts to lower taxable income

     • We talked more through this topic in a recent newsletter
       

2. Retirement Planning:

   • Contribute to your employer's 403(b) or 401(k) if offered

   • Consider a Roth IRA during lower-income training years
     

3. Student Loan Management:

   • Explore PSLF qualification strategies

   • Optimize income-driven repayment plans
     

4. Insurance:

   • Don't neglect disability insurance

   • Consider professional liability insurance needs

Your Financial Prescription

After reading through the 4 money personalities, does anything strike a chord? We’re curious if this topic connected any dots for you.

We want to hear from you! Reply to the email with what money personality you are and what habits you’d like to kick.

Meme of the Week

Talk soon,

M&H