When it concerns money, a person’s personality plays a major 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 various personality types that are more likely to have money complications than others. It’s difficult to change your personality traits, specifically when you’re older, so simply comprehending how your personality affects your financial decisions can help you make better financial decisions in the future. It’s certainly an important topic to understand, as money issues can magnify rapidly and you can end up in deep water within the blink of an eye. This article will investigate four different personality types whom are more likely to have money problems, in conjunction with some suggested ways to improve your financial situation if you fall under one of these personality classifications.
Economically speaking, the higher the risk the higher the reward, but the probability of experiencing high risk success is considerably low. Some folks are born as risk-takers, others develop this personality trait in time; but most of the time, it’s the thrill of the risk that these types of individuals relish. Statistically, the probability of financial success for the risk-takers are low, so it is vital 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 mixture of high-risk and low-risk investments will noticeably improve their financial future.
2. The Spenders
Whether they’re wealthy or not, the spenders are the types of individuals who live life to the fullest without thinking about the financial effects of their decision-making. Whether they’re spending money to have a good time, look good, or to simply please others, the spenders are likely to incur large amounts of debt which can take a long period of time to repay. For this reason, 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 creating a budget to monitor their spending habits and at the same time, explore the triggers that cause them to spend their money to begin with. Addressing the triggers that cause these types of people to overspend is the key to resolving the issue.
3. The Ignorants
The ignorants are frequently the type of folks that are financially uneducated and have no interest in improving their fiscal skills. The ignorants may have a similar rationality to the risk-takers in that they want to ‘live life to the fullest’ and as such, spend all of their money and wind up in debt. It’s critical that folks with this personality trait learn the value of money and how it can be used to provide a better future. Instead of thinking about now, they should attempt to think about how spending their money now will affect their future. Take an interest in learning how to budget by reading online blog posts and articles. Who knows, they might actually enjoy it?
4. The Pessimists
In bleak contrast to the risk-takers, the pessimists often pass up on opportunities to make money simply 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 challenge with the pessimists is that by avoiding all risks, they will feel more protected, and this will hinder 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 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 likely the most common personality traits that impairs financial growth and can lead to money concerns. In today’s world, money is without question incredibly 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 imply that you can’t change some of them in time to be more financially responsible. If you need any help with your finances, or you’ve found yourself facing a mountain of debt due to overspending, talk to Bankruptcy Experts on 1300 795 575 for assistance, or visit www.bankruptcyexperts.com.au for more details.