How your net worth is linked to your self worth

I’ve been meaning to write about this article I read about how net worth is linked to your self worth. (NYT Article: Net Worth, Self-Worth and How We Look At Money.)

Money certainly isn’t everything, but it can be difficult to see the forest for the trees when you don’t have any money (or are in major debt).

The article and survey goes on to list out 4 camps of thinkers in this realm of net worth linked to self worth, and I think it’s worth a read through:

CAMP #1: MONEY AVOIDANCE

They:

• distance themselves from money
• worried about abusing credit cards
• may believe that they do not deserve to have money
• may sabotage their own financial well-being
• people in this group tend to have low incomes and net worth
• they also tend to be younger

CAMP #2: MONEY WORSHIP

They:

• believe that an increase in income or a windfall will make everything better
• love the status derived from the things that money can buy
• this belief also lands people in debt because they use whatever credit they have to buy things that will impress others

CAMP #3: MONEY VIGILANCE

They:

• do not like to share information about their income or wealth
• do not spend foolishly
• excessive wariness about spending can keep these people from enjoying the benefits of what money can buy
• while they did not necessarily have higher incomes, they paid off their credit card bills each month

CAMP #4: MONEY ANXIETY

They:

• link their self-worth is linked to their net worth
• they often take bigger financial risks because they want to have the stories of big gains to impress their friends

Read: “Money Beliefs and Financial Behaviors: Development of the Klontz Money Script Inventory” by Brad Klontz, via NYT Article: Net Worth, Self-Worth and How We Look At Money.

GUESSING WHICH CAMP I AM IN

I guess I identify with Camp #3 the most.

But it’s kind of odd as I do blog about my income/wealth-growing quite openly…although I’d never really discuss it with friends or family in real life unless explicitly asked.

I do have a slight wariness about spending too much, but I think it’s tempered by the fact that I do enjoy what money can buy (traveling for instance!).

I will note that when I was younger, the minute I had my hands on my first credit card, I have never paid a single red cent in interest. I never liked carrying a balance on those cards, and most of my debt was from school.

WHICH CAMP DO YOU FALL INTO?