When it relates to money, a person’s personality plays a meaningful role in their financial decision-making. Everybody is unique, and that’s what makes us human, so it really shouldn’t come as a surprise that there are specific types of personalities that are more likely to have money issues than others. It’s difficult to modify your personality traits, specifically when you’re older, so simply knowing how your personality has an effect on your financial decisions may help you make better financial decisions in the future. It’s unquestionably an important topic to understand, as money complications can exacerbate quickly and you can end up in deep water within the blink of an eye. This blog will explore 4 different types of personalities whom are more likely to have money difficulties, together with some suggested ways to improve your financial situation if you fall into one of these personality types.
Economically speaking, the higher the risk the higher the reward, but the probability of experiencing high risk success is significantly low. Some folks are born as risk-takers, others develop this personality trait over time; but in most cases, it’s the thrill of the risk that these types of people take pleasure in. Statistically, the odds of financial success for the risk-takers are low, so it is very important for these types of people to diversify their risks to increase their chances of financial success. These folks can make high-risk investments, but they can’t put all their eggs in one basket. A combination of high-risk and low-risk investments will drastically improve their financial future.
- The Spenders
Regardless if they’re wealthy or not, the spenders are the types of people who live life to the fullest without thinking of the financial consequences of their decision-making. Whether they’re spending money to have a great time, look good, or to simply please others, the spenders are likely to acquire large amounts of debt which can take a very long time to repay. For this reason, their opportunity of financial success are substantially inhibited. Saving money is the key to financial success, so to prevent overspending, the spenders need to consider forming a budget to observe their spending habits and additionally, examine the triggers that cause them to spend their money to begin with. Dealing with the triggers that cause these types of people to overspend is the key to resolving the issue.
- The Ignorants
The ignorants are typically the type of individuals that are financially uneducated and have no interest in improving their financial 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 essential 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 attempt 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 have a tendency pass up on opportunities to make money simply because they fear they won’t succeed. When it involves large investments like buying a house or investing in the stock exchange, the pessimist will avoid taking any risks for fear of losing their hard-earned money. The challenge with the pessimists is that by avoiding all risks, they will feel more safe, and this will impede their opportunity of financial growth and success. An ideal solution for the pessimists is to diversify their investments in a wide-range of markets to make certain that they have a well-balanced portfolio that is low-risk and offers an opportunity for a good return.
There are certainly many other types of personalities than the ones discussed above, however these are likely the most common personality traits that inhibits financial growth and can result in money issues. In today’s world, money is without question exceptionally 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 indicate that you can’t alter some of them with 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, call Bankruptcy Advice Perth on 1300 879 867 for assistance, or visit www.bankruptcy-advice.com.au/perth for more details.