What Your Money Temperament Says About You • Everyday Cheapskate

Did you know your approach to money isn’t just about numbers—it’s about temperament? Whether you’re a spender, a saver, or a savvy deal-seeker, your natural money mindset affects every financial decision you make. But here’s the good news: your habits aren’t set in stone. In this guide, we’ll explore three distinct money temperaments and how understanding yours can help you make better financial choices, save more, and live stress-free.

Like it or not, we all have a money temperament—our built-in financial personality that shapes the way we think about, spend, and manage money. It’s that gut reaction you have when faced with a financial decision, whether it’s splurging on a sale, hunting for the best deal, or stashing every extra penny into savings. Your money temperament influences how you handle debt, budgeting, and even long-term financial security.

The good news? While your natural tendencies may lean one way, they’re not set in stone. With awareness and a little effort, you can train yourself to make smarter financial choices—ones that work for you, not against you.

The Three Money Mindsets: Which One Are You?

To get a fun and informal glimpse into your money temperament, consider this scenario:

You’re driving an old clunker of a car that’s nickel-and-diming you with constant repairs. Then, by some stroke of dumb luck, you win $20,000 in the lottery. Determined to replace your worn-out ride, you head out to buy a car. What do you do?

A. Make a $20,000 down payment on your dream car.

B. Pay cash for a $20,000 previously-owned car.

C. Use your negotiation skills and patience to snag a reliable, late-model used car for $10,000 cash—then stash the remaining $10,000 into savings.

Now, putting aside your humble columnist’s (obvious) bias, let’s break down what your answer might reveal about your financial mindset.

A. Twice the Price

If you picked A, you’re living life at twice the price. You see credit as a tool to bridge the gap between your income and what you want. Monthly payments? No problem—after all, that’s just how things work, right?

You don’t mind paying interest because, in your mind, borrowing money is how you access bigger, better things. The downside? Double-digit interest rates on revolving debt mean that, over time, you’re often paying twice (or more) for the things you buy. While you may feel like you’re maximizing your income, you might also find yourself in a cycle of working harder just to keep up.

B. Full Price

If B was your choice, you have a full-price mentality. You believe in paying cash and keeping things simple—if you have the money, you spend it. Negotiation isn’t really your thing; you’d rather just pay the asking price and move on.

You avoid credit card debt and live within your means, which is a big plus. But because you’re not in the habit of stretching your dollars, it often feels like there’s just enough to cover the bills, but not much extra. You’re making it work, but saving for the future? That’s still a challenge.

C. Half the Price

If C was your pick, congratulations—you’re wired to live life for half the price. You take pride in stretching your dollars and making savvy financial decisions. Paying full price? Not if you can help it!

You know how to find a deal, negotiate when needed, and save the difference. Living below your means isn’t a burden—it’s a skill you’ve mastered. You enjoy the peace of mind that comes with having savings, and you know that financial freedom isn’t about how much you earn, but how well you manage what you have.

Why This Matters

Now, let’s be real—no one always pays twice the price for everything, and it’s nearly impossible to never pay full price. That’s not the point. What is important is recognizing that every spending decision comes with a choice. You can choose to go into debt. You can commit to living within your means. Or you can sharpen your skills and aim to pay half the price whenever possible.

And here’s the kicker: We’re not locked into our money temperaments. The way we naturally think about and respond to money isn’t a life sentence—it’s just our default setting. But just like an unruly toddler who needs a little supervision (and maybe a timeout), our financial habits can be guided, corrected, and improved with a little discipline. The more intentional you are, the more control you’ll have over your financial future—and that’s where real freedom begins.

The Real Cost of Your Financial Choices

A couple of hundred years ago, Adam Smith, the economist and philosopher, wrote in Wealth of Nations:

“The real price of everything, what everything really costs to the man who wants to acquire it, is the toil and trouble of acquiring it.” – Adam Smith

I’m not about to sugarcoat it—living below your means isn’t always a walk in the park. For many of us (myself included), the natural instinct is to buy what we want now and whip out the credit card when the cash runs out. It’s as easy as rolling off a log.

But here’s the thing: there is a toil-and-trouble component to half-price living. Sometimes, it requires more effort than simply swiping a card. In a way, living below your means is like taking on a part-time job—one where your responsibilities include planning, researching, waiting, negotiating, strategizing, and comparison shopping.

But unlike most jobs, this one comes with perks. You set the hours, the agenda, and the pace. And the best part? The “wages” are tax-free. Every dollar you don’t spend is a dollar that stays in your pocket—fully taxed and ready to work for you.

Toil-and-Trouble on Wheels

Remember the $20,000 car scenario? Let’s take another look—this time, factoring in the toil-and-trouble equation.

Car Purchase Option A: The No-Sweat Route

Buying a brand-new car (Option A) took all of about an hour. The dealership practically rolled out the red carpet, handling every detail for you. It was quick, painless, and required zero effort on your part. No toil, no trouble—just a nice, shiny car and a long road of monthly payments ahead.

Car Purchase Option B: The Smarter-but-Still-Simple Route

Paying cash for a solid used car (Option B) took a little more legwork. You had to track one down, maybe take it to a mechanic for a once-over, and make sure you weren’t overpaying. It required some diligence, but in exchange, you saved a significant chunk of money compared to buying new.

Car Purchase Option C: The Big-Payoff Route

Finding that hidden gem (Option C)—a low-mileage, well-maintained, single-owner car at a steal—took patience. It meant weeks of searching, test-driving, negotiating, and being ready to pounce when the right deal appeared. But in the end? That buyer didn’t just get a great car—he kept an extra $10,000 in the bank.

How to Shift to a Half-Price Mindset

“Half-price” isn’t just about scoring deals—it’s a mindset, a new way of thinking about money. It’s a learned behavior, not something you’re born with. No matter your natural money tendencies, adopting this mindset means seeing the bigger picture. It’s about exercising discipline, respecting the money you have, and making every dollar work harder for you.

Want to start your half-price journey today? Try this: The next time you’re about to make a purchase, ask yourself—can I find it for half the price? Challenge yourself to research, wait, or negotiate before you buy. Every saved dollar is a win!

I want you to get excited about what’s possible when you start living below your means. If you’re just starting out, prepare to be amazed at how small changes can lead to big results. And if you’re already on this journey? Let’s take it to the next level.

And now, a totally unapologetic plug for my book—because I wrote it just for you:

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Live Your Life for Half the Price

Question: What’s your biggest financial weakness? Are you a sucker for sales, love dining out, or struggle with saving? Let’s talk about it in the comments below.

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Dick Ivey says:

February 24, 2025 at 9:54 am

Mary was it you who once told us …if you have a car payment, once it is paid off, continue to put your car payment in an interest bearing account and then plan to drive your PFC for another 3-5 years when you’ll have a nest egg to purchase a different car for cash. You only have to baby a paid off car once to make this a way to avoid having a car payment with interest while your ‘car payments’ savings make you money each year. You get to save twice…no interest on a car note going out and interest income coming in on your car payment savings.

Another way, if you just have to get another car payment, pledge your bank CD or other savings to cover your loan and agree to pay no more than 2% over what the bank is paying you.

Just some random thoughts.

Mary Hunt says:
February 24, 2025 at 1:29 pm

Why yes, that would be me! It’s a great idea. Here’s another way to put that theory to work: No More Car Payments: How to Buy the Car of Your Dreams with All Cash

February 24, 2025 at 9:49 am

Yep, my favorite car is a PFC and I always drive them until they wear out. Until repairs exceed what I’d pay out for another used car, I’ll just keep on maintaining and driving my 2008 mafia staff car, also known as a Lincoln Towncar. (that’s a paid-for-car)

Ellen says:

February 24, 2025 at 9:30 am

A few winters ago, 2 of our vehicles bit the dust, pretty much within months of each other. The 2004 Silvardo (250+k mile broken frame with other mechanical issues nickel and dime repairs needed) my 2010 Freestyle (200K miles, broken frame that was too rusted to fix!) left us with a 2006 sedan from my mom (who didn’t drive any longer). We both work, and husband is carpenter, so we needed 2 vehicles. We went to the dealership with the intention of getting a truck-used trucks were so overpriced and high mileage!! A chance viewing at their website found us a 2010 Trailblazer that had just arrived, low miles and great price. We bought it-financed it-right away. Then we ordered a new truck (2022 Ranger) for husband. No bells/whistles, but 4WD needed on our gravel roads for winter. By the time the Ranger arrived, (10 months later) we had paid off the Trailblazer. Then, I ordered my 2023 hybrid Maverick, with a nice package of some bells and whistles….heated seats are the best when it is -20 at midnight! We bought both or our trucks with the intention of having them paid off before the loan term. The Ranger is paid off this year, the Maverick in 2 years. It was the plan to have 2 newer vehicles by the time we wanted to retire, and not need to worry about expensive repairs. The number of days of missed work because we were down a vehicle added up to a car payment, so we really thought about these decisions. AND, my mom’s car was gifted to my son and daughter in law so she could still stay home with the little ones since they didn’t have a car payment. This is only the 3rd time in our 45 years of marriage that we have bought new vehicles. We are happy with our decision.

Holly O says:

September 17, 2023 at 5:20 pm

I have won money like that (multiple times ). FIRST thing you do is pay taxes on it!!! You should not spend it all as you will get a 1099 or a W2-g. I won $40,000 from Butterfinger ( yes the candy company) I put away $10,000 for taxes ( I pay quarterly ) Then I went and negotiated at great deal on a new ( yes I only buy new but sales people hate me – no extras, no pin stripe, window coat etc ) car and traded in my 12 year old car that had over 200,000 miles for double what the blue book was – Paid cash ( actually cashiers check ) then still had $6,000 left over. I have won $$$ multiple times – ALWAYS pay the Taxes first!! Having that car paid off was a great as it happened right while retiring . Always pay off anything you have recurring payments on – Debt free with money in savings is a wonderful feeling.

Sheri B. says:

September 16, 2023 at 7:13 pm

I paid full price on my 2021 Jeep Cherokee Trailhawk (4×4) last yr with only 11 miles on it and they said that was taking off the truck and putting some gas in.
I love it. It is so safe going up the mountain’s at Christmas time to be with my sister. She always has Black ice at the top of her street. A big patch of black ice. But with my Jeep, I can drive right over it and not slide!!!! Plus it has room for my 6’8″ adult son to ride with me up there.

Charlie O. says:

September 16, 2023 at 2:22 pm

My wife and I recently celebrated our 50th wedding anniversary. Several months ago we purchased a 2008 Lexus with 127,000 on it for $5000. It will be probably be our last car. Until then, in over 48 years we had paid a total of about $11,000 for all of our cars. We have always lived below our means, and the absence of financial tension, and the flexibility it affords has been a blessing. We save money in dozens of ways that enables us to enjoy vacations, a paid-for house, and a comfortable standard of living. In spite of the fact that our income has always been at best modest, we are able to have whatever we want. Fees and interest are poor ways to spend money.

What Your Money Temperament Says About You—And How to Improve It