When it involves money, a person’s personality plays a notable role in their financial decision-making. Every person is unique, and that’s what makes us human, so it really shouldn’t come as a surprise that there are some personality types that are more likely to have money concerns than others. It’s hard to alter your personality traits, specifically when you’re older, so simply having an understanding of how your personality impacts your financial decisions may help you make better financial decisions in the future. It’s 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 look at four different personality types whom are more likely to have money challenges, in conjunction with some recommended ways to improve your financial situation if you fall under one of these personality groups.
- The Risk-Takers
Economically speaking, the higher the risk the higher the reward, but the possibility of experiencing high risk success is notably low. Some folks are born as risk-takers, others develop this personality trait over time; but the majority of the time, it’s the thrill of the risk that these types of individuals revel in. Statistically, the odds of financial success for the risk-takers are low, so it is essential for these types of people to diversify their risks to increase their chances of financial success. These people 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 dramatically improve their financial future.
- The Spenders
Regardless if they’re wealthy or not, the spenders are the types of individuals who live life to the fullest without thinking about the financial repercussions of their decision-making. Whether they’re spending money to enjoy themselves, look good, or to simply please others, the spenders are likely to accumulate substantial amounts of debt which can take a long time to repay. For this reason, their chances of financial success are greatly impaired. Saving money is the key to financial success, so to avoid overspending, the spenders need to consider developing a budget to observe their spending habits and at the same time, review 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 resolving the issue.
- The Ignorants
The ignorants are often the type of individuals that are financially uneducated and have no interest in improving their fiscal skills. The ignorants may have a similar frame of mind 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 essential 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 aim 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 tend to pass up on opportunities to make money purely because they fear they won’t succeed. When it comes to large investments like purchasing 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 impair 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 ensure 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 specified above, however these are probably the most common personality traits that restricts financial growth and can cause money issues. 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 particular personality traits doesn’t mean that you can’t modify some of them over 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, get in touch with Bankruptcy Experts Townsville on 1300 795 575 for assistance, or visit http://www.bankruptcyexpertstownsville.com.au for more information.