When it relates to money, a person’s personality serves a significant 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 revelation that there are specific types of personalities that are more likely to have money issues than others. It’s hard to adjust your personality traits, especially when you’re older, so simply having an understanding of how your personality influences your financial decisions can help you make better financial decisions down the road. It’s undoubtedly an important topic to understand, as money complications can exacerbate quickly and you can end up in deep water within the blink of an eye. This blog will look into 4 different personality types whom are more likely to have money challenges, as well as some suggested ways to improve your financial situation if you fall into one of these personality categories.
- The Risk-Takers
Financially speaking, the higher the risk the higher the reward, but the probability of experiencing high risk success is substantially low. Some folks are born as risk-takers, others develop this personality trait gradually; but for the most parts, it’s the thrill of the risk that these types of folks relish. Statistically, the probability of financial success for the risk-takers are low, so it is very important for these types of individuals to diversify their risks to increase their probability 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 considerably 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 considering the financial effects of their decision-making. Whether they’re spending money to have fun, look good, or to simply please others, the spenders are likely to accumulate huge amounts of debt which can take a long time to repay. Consequently, their likelihood of financial success are significantly inhibited. Saving money is the key to financial success, so to avoid overspending, the spenders should consider forming a budget to track their spending habits and at the same time, investigate 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 problem.
- The Ignorants
The ignorants are frequently the type of folks that are financially uneducated and have no interest in improving their monetary skills. The ignorants may have a similar way of thinking 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 crucial 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 try to think about how spending their money now will affect 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 tend to 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 issue with the pessimists is that by avoiding all risks, they will feel more secure, and this will inhibit 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 sure that they have a well-balanced portfolio that is low-risk and offers an opportunity for a good return.
There are naturally many other types of personalities than the ones mentioned above, however these are perhaps the most common personality traits that restricts financial growth and can cause money problems. 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 specific personality traits doesn’t suggest that you can’t adjust some of them over time to be more financially responsible. If you need any assistance with your finances, or you’ve ended up facing a mountain of debt as a result of overspending, talk to Bankruptcy Experts Tennant Creek on 1300 795 575 for assistance, or visit http://www.bankruptcyexpertstennantcreek.com.au for additional information.