When it relates to money, a person’s personality serves 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 specific types of personalities that are more likely to have money concerns than others. It’s tough to adjust your personality traits, specifically when you’re older, so simply understanding how your personality affects your financial decisions can help you make better financial decisions down the road. It’s undeniably an important topic to understand, as money complications can compound quickly and you can end up in hot water within the blink of an eye. This post will have a look at four different personality types whom are more likely to have money concerns, along with some suggested ways to improve your financial situation if you fall into one of these personality groups.
- The Risk-Takers
Financially speaking, the higher the risk the higher the reward, but the probability of experiencing high risk success is considerably low. Some people 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 people relish. Statistically, the chances of financial success for the risk-takers are low, so it is crucial for these types of individuals to diversify their risks to increase their likelihood 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 drastically improve their financial future.
- The Spenders
Regardless of whether they’re wealthy or not, the spenders are the types of people 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 considerable amounts of debt which can take a very long time to repay. As a result, their likelihood of financial success are noticeably impaired. 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 additionally, investigate the triggers that cause them to spend their money in the first place. Facing the triggers that cause these types of people to overspend is the key to resolving the problem.
- The Ignorants
The ignorants are generally the type of individuals that are financially uneducated and have no interest in improving their fiscal skills. The ignorants may have a similar reasoning to the risk-takers in that they want to ‘live life to the fullest’ and consequently, spend all of their money and wind 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 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 bleak contrast to the risk-takers, the pessimists often pass up on opportunities to make money purely because they fear they won’t succeed. When it comes down 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 protected, and this will inhibit their opportunity of financial growth and success. An effective solution for the pessimists is to diversify their investments in a wide-range of markets to make certain that 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 mentioned above, however these are perhaps the most common personality traits that impedes financial growth and can result in money troubles. 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 particular personality traits doesn’t mean that you can’t alter 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 caused by overspending, phone Bankruptcy Experts Toowoomba on 1300 795 575 for assistance, or visit Bankrupt Toowoomba for more information.