When it relates to money, a person’s personality represents 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 certain types of personalities that are more likely to have money concerns than others. It’s tough to reshape your personality traits, in particular when you’re older, so simply comprehending how your personality affects your financial decisions may help you make better financial decisions down the road. It’s undoubtedly an important topic to understand, as money challenges can intensify rather quickly and you can end up in hot water within the blink of an eye. This article will have a look at 4 different personality types whom are more likely to have money troubles, alongside some suggested ways to improve your financial situation if you fall under one of these personality categories.
Fiscally speaking, the higher the risk the higher the reward, but the odds of experiencing high risk success is notably low. Some people are born as risk-takers, others develop this personality trait in time; but for the most parts, it’s the thrill of the risk that these types of individuals revel in. Statistically, the likelihood of financial success for the risk-takers are low, so it is vital for these types of individuals to diversify their risks to increase their probability of financial success. These people can make high-risk investments, but they can’t put all their eggs in one basket. A blend of high-risk and low-risk investments will dramatically improve their financial future.
- The Spenders
No matter if they’re wealthy or not, the spenders are the types of folks who live life to the fullest without thinking of the financial implications of their decision-making. Whether they’re spending money to have a good time, look good, or to simply please others, the spenders are more likely to accumulate enormous amounts of debt which can take a very long time to repay. As a result, their likelihood of financial success are greatly restricted. Saving money is the key to financial success, so to avoid overspending, the spenders need to consider setting up a budget to track their spending habits and additionally, study the triggers that cause them to spend their money in the first place. Confronting the triggers that cause these types of people to overspend is the key to resolving the problem.
- The Ignorants
The ignorants are often the type of folks that are financially uneducated and have no interest in improving their fiscal skills. The ignorants may have a similar way of thinking to the risk-takers in that they want to ‘live life to the fullest’ and because of this, spend all of their money and wind up in debt. It’s imperative that folks 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 aim 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 blog posts and articles. Who knows, they might actually enjoy it?
- The Pessimists
In stark 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 involves large investments like purchasing a house or investing in the stock exchange, the pessimist will avoid taking any risks for fear of losing their hard-earned money. The trouble with the pessimists is that by avoiding all risks, they will feel more protected, and this will restrict their chances of financial growth and success. An effective solution for the pessimists is to diversify their investments in a wide-range of markets to make certain they have a well-balanced portfolio that is low-risk and offers an opportunity for a good return.
There are of course many other personality types than the ones discussed above, however these are probably the most common personality traits that impedes financial growth and can lead to money difficulties. In today’s world, money is without question extremely important not only for survival, but also to be able to enjoy the only life we have. Just because you have certain personality traits doesn’t indicate that you can’t reshape some of them over time to be more financially responsible. If you need any assistance with your finances, or you’ve ended up facing a mountain of debt as a result of overspending, phone Bankruptcy Advice on 1300 879 867 for assistance, or visit www.bankruptcy-advice.com.au/ for more information.