When it relates to money, a person’s personality plays a meaningful 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 particular types of personalities that are more likely to have money complications than others. It’s difficult to reshape your personality traits, especially when you’re older, so simply being aware of how your personality affects your financial decisions may help you make better financial decisions in the future. It’s surely an important topic to understand, as money challenges can magnify rapidly and you can end up in deep water within the blink of an eye. This post will look at four different types of personalities whom are more likely to have money complications, in conjunction with some recommended ways to improve your financial situation if you fall under one of these personality classifications.
- The Risk-Takers
Fiscally speaking, the higher the risk the higher the reward, but the likelihood of experiencing high risk success is substantially low. Some folks are born as risk-takers, others develop this personality trait over time; but most of the time, it’s the thrill of the risk that these types of people 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 likelihood of financial success. These individuals 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 dramatically improve their financial future.
- The Spenders
Whether they’re wealthy or not, the spenders are the types of people who live life to the fullest without thinking of the financial implications of their decision-making. Whether they’re spending money to have a good time, look good, or to simply please others, the spenders are more likely to incur enormous amounts of debt which can take a very long time to repay. For this reason, their chances of financial success are considerably restricted. Saving money is the key to financial success, so to avoid overspending, the spenders should consider creating a budget to monitor their spending habits and additionally, 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 fixing the problem.
- The Ignorants
The ignorants are typically the type of people that are financially uneducated and have no interest in improving their fiscal 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 as a result, spend all of their money and find themselves in debt. It’s vital that people 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?
- The Pessimists
In stark contrast to the risk-takers, the pessimists generally pass up on opportunities to make money purely because they fear they won’t succeed. When it involves 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 impair their chances of financial growth and success. An effective 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 obviously many other personality types than the ones specified above, however these are probably the most common personality traits that restricts financial growth and can cause money problems. 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 suggest 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 found yourself facing a mountain of debt caused by overspending, speak with Bankruptcy Experts Sunshine Coast on 1300 795 575 for assistance, or visit www.bankruptcyexpertssunshinecoast.com.au for more details.