When it comes to money, a person’s personality serves a notable role in their financial decision-making. Everyone is unique, and that’s what makes us human, so it really shouldn’t come as a revelation that there are certain types of personalities that are more likely to have money problems than others. It’s hard to modify your personality traits, specifically when you’re older, so simply being aware of how your personality impacts your financial decisions can help you make better financial decisions in the future. It’s without a doubt an important topic to understand, as money difficulties can exacerbate rather quickly and you can end up in deep water within the blink of an eye. This post will examine 4 different personality types whom are more likely to have money difficulties, in addition to some recommended ways to improve your financial situation if you fall under one of these personality categories.
- The Risk-Takers
Economically speaking, the higher the risk the higher the reward, but the chances of experiencing high risk success is notably low. Some individuals 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 individuals take pleasure in. Statistically, the likelihood 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 probability of financial success. These folks can make high-risk investments, but they can’t put all their eggs in one basket. A blend of high-risk and low-risk investments will substantially improve their financial future.
- The Spenders
Whether they’re wealthy or not, the spenders are the types of individuals who live life to the fullest without taking into account the financial consequences 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 enormous amounts of debt which can take a very long time to repay. As a result, their likelihood of financial success are considerably restricted. Saving money is the key to financial success, so to avoid overspending, the spenders should consider setting up a budget to observe their spending habits and additionally, explore the triggers that cause them to spend their money in the first place. Addressing 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 folks that are financially uneducated and have no interest in improving their fiscal skills. The ignorants may have a similar mindset to the risk-takers in that they want to ‘live life to the fullest’ and because of this, spend all of their money and find themselves in debt. It’s crucial that people 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 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 generally pass up on opportunities to make money simply because they’re afraid they won’t succeed. When it concerns 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 concern 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 make sure that they have a well-balanced portfolio that is low-risk and offers an opportunity for a good return.
There are clearly many other types of personalities than the ones detailed above, however these are perhaps the most common personality traits that restricts financial growth and can result in money concerns. 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 signify that you can’t alter 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 as a result of overspending, talk with Bankruptcy Experts Gold Coast on 1300 879 867 for assistance, or visit http://www.bankruptcyexpertsgoldcoast.com.au for more information.