When it comes down to money, a person’s personality serves a meaningful 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 difficult to modify your personality traits, in particular when you’re older, so simply knowing how your personality impacts your financial decisions may help you make better financial decisions in the future. It’s most certainly an important topic to understand, as money issues can exacerbate quickly and you can end up in hot water within the blink of an eye. This post will examine 4 different types of personalities whom are more likely to have money troubles, in addition to some suggested ways to improve your financial situation if you fall into one of these personality categories.
Fiscally speaking, the higher the risk the higher the reward, but the chances of experiencing high risk success is substantially low. Some folks 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 folks take pleasure in. Statistically, the likelihood of financial success for the risk-takers are low, so it’s important for these types of folks to diversify their risks to increase their likelihood of financial success. These individuals can make high-risk investments, but they can’t put all their eggs in one basket. A mix of high-risk and low-risk investments will noticeably 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 about the financial repercussions 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 huge amounts of debt which can take a long time to repay. As a result, their likelihood of financial success are noticeably restricted. Saving money is the key to financial success, so to avoid overspending, the spenders need to consider setting up a budget to monitor their spending habits and at the same time, investigate the triggers that cause them to spend their money to begin with. Facing the triggers that cause these types of people to overspend is the key to solving the issue.
- The Ignorants
The ignorants are frequently the type of folks that are financially uneducated and have no interest in improving their monetary skills. The ignorants may have a similar rationality to the risk-takers in that they want to ‘live life to the fullest’ and because of this, spend all of their money and end up in debt. It’s imperative 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 a bearing on their future. Take an interest in learning how to budget by reading online blogs and articles. Who knows, they might actually enjoy it?
- The Pessimists
In bleak contrast to the risk-takers, the pessimists typically pass up on opportunities to make money simply because they fear they won’t succeed. When it relates 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 trouble with the pessimists is that by avoiding all risks, they will feel more secure, and this will hinder their chances of financial growth and success. An ideal solution for the pessimists is to diversify their investments in a wide-range of markets to ensure they have a well-balanced portfolio that is low-risk and offers an opportunity for a good return.
There are undoubtedly many other personality types than the ones detailed above, however these are likely the most common personality traits that hinders financial growth and can cause money troubles. 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 specific personality traits doesn’t imply that you can’t adjust some of them with time to be more financially responsible. If you need any assistance with your finances, or you’ve found yourself facing a mountain of debt caused by overspending, talk to Bankruptcy Experts Gympie on 1300 795 575 for assistance, or visit http://www.bankruptcyexpertsgympie.com.au for more information.