When it comes to money, a person’s personality represents a substantial 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 certain personality types that are more likely to have money issues than others. It’s difficult to change your personality traits, specifically when you’re older, so simply being aware of how your personality has an effect on 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 rapidly and you can end up in deep water within the blink of an eye. This article will have a look at 4 different types of personalities whom are more likely to have money issues, alongside some suggested ways to improve your financial situation if you fall into one of these personality classifications.
Economically speaking, the higher the risk the higher the reward, but the odds of experiencing high risk success is significantly low. Some folks are born as risk-takers, others develop this personality trait gradually; but in many cases, it’s the thrill of the risk that these types of folks take pleasure in. Statistically, the odds of financial success for the risk-takers are low, so it’s important for these types of individuals 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 significantly improve their financial future.
- The Spenders
No matter if they’re wealthy or not, the spenders are the types of individuals who live life to the fullest without contemplating the financial implications of their decision-making. Whether they’re spending money to have a great 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 opportunity of financial success are noticeably inhibited. Saving money is the key to financial success, so to prevent overspending, the spenders need to consider creating a budget to monitor their spending habits and at the same time, inspect 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 fixing the issue.
- The Ignorants
The ignorants are typically the type of folks that are financially uneducated and have no interest in improving their financial skills. The ignorants may have a similar reasoning 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 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 attempt 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 weblogs and articles. Who knows, they might actually enjoy it?
- The Pessimists
In stark contrast to the risk-takers, the pessimists often 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 exchange, the pessimist will avoid taking any risks for fear of losing their hard-earned money. The concern with the pessimists is that by avoiding all risks, they will feel more safe, and this will impair their opportunity of financial growth and success. A good 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 clearly many other personality types than the ones discussed above, however these are perhaps the most common personality traits that inhibits financial growth and can lead to money concerns. In today’s world, money is without question remarkably 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 mean that you can’t adjust some of them with time to be more financially responsible. If you need any help with your finances, or you’ve ended up facing a mountain of debt due to overspending, speak to Bankruptcy Experts Cassowary Coast on 1300 795 575 for assistance, or visit http://www.bankruptcyexpertscassowarycoast.com.au for more details.