When it comes to money, a person’s personality plays a notable role in their financial decision-making. Everyone is unique, and that’s what makes us human, so it really shouldn’t come as a shock that there are particular types of personalities that are more likely to have money complications than others. It’s difficult to change your personality traits, particularly when you’re older, so simply comprehending how your personality affects your financial decisions can help you make better financial decisions down the road. It’s certainly an important topic to understand, as money complications can magnify quickly and you can end up in deep water within the blink of an eye. This post will look into 4 different personality types whom are more likely to have money concerns, alongside some recommended ways to improve your financial situation if you fall into one of these personality classifications.
- The Risk-Takers
Fiscally speaking, the higher the risk the higher the reward, but the possibility of experiencing high risk success is substantially low. Some individuals are born as risk-takers, others develop this personality trait gradually; but in most cases, it’s the thrill of the risk that these types of folks relish. Statistically, the likelihood of financial success for the risk-takers are low, so it is crucial for these types of people to diversify their risks to increase their odds of financial success. These people can make high-risk investments, but they can’t put all their eggs in one basket. A mixture of high-risk and low-risk investments will significantly improve their financial future.
- The Spenders
Whether they’re wealthy or not, the spenders are the types of people who live life to the fullest without contemplating the financial effects of their decision-making. Whether they’re spending money to have a great time, look good, or to simply please others, the spenders are more likely to incur substantial amounts of debt which can take a long period of time to repay. Subsequently, their chances of financial success are considerably inhibited. Saving money is the key to financial success, so to avoid overspending, the spenders need to consider putting together a budget to monitor their spending habits and at the same time, analyse the triggers that cause them to spend their money in the first place. Dealing with the triggers that cause these types of people to overspend is the key to resolving the problem.
- The Ignorants
The ignorants are commonly the type of people that are financially uneducated and have no interest in improving their financial skills. The ignorants may have a similar rationality to the risk-takers in that they want to ‘live life to the fullest’ and consequently, spend all of their money and end up in debt. It’s critical that individuals with this personality trait learn the value of money and how it can be used to provide a better future. As opposed to thinking about now, they should try to think about how spending their money now will have an effect on their future. Take an interest in learning how to budget by reading online weblogs and articles. Who knows, they might actually enjoy it?
- The Pessimists
In bleak contrast to the risk-takers, the pessimists tend to pass up on opportunities to make money purely because they’re afraid they won’t succeed. When it comes down to large investments like buying a house or investing in the stock market, the pessimist will avoid taking any risks for fear of losing their hard-earned money. The problem with the pessimists is that by avoiding all risks, they will feel more secure, and this will impede their likelihood of financial growth and success. An effective solution for the pessimists is to diversify their investments in a wide-range of markets to make sure they have a well-balanced portfolio that is low-risk and offers an opportunity for a good return.
There are of course many other types of personalities than the ones detailed above, however these are perhaps the most common personality traits that restricts financial growth and can lead to money problems. In today’s world, money is without question remarkably important not only for survival, but also to be able to enjoy the only life we have. Just because you have specific personality traits doesn’t mean that you can’t alter some of them over time to be more financially responsible. If you need any support with your finances, or you’ve ended up facing a mountain of debt caused by overspending, get in touch with Bankruptcy Experts Rockhampton on 1300 795 575 for assistance, or visit http://www.bankruptcyexpertsrockhampton.com.au for more information.