When it comes to money, a person’s personality plays a major 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 shock that there are certain types of personalities that are more likely to have money issues than others. It’s hard to alter your personality traits, in particular when you’re older, so simply understanding how your personality influences your financial decisions may help you make better financial decisions down the road. It’s undeniably an important topic to understand, as money difficulties can exacerbate quickly and you can end up in hot water within the blink of an eye. This post will have a look at 4 different personality types whom are more likely to have money issues, as well as some recommended ways to improve your financial situation if you fall under one of these personality groups.
- The Risk-Takers
Fiscally speaking, the higher the risk the higher the reward, but the chances of experiencing high risk success is substantially low. Some individuals 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 individuals enjoy. Statistically, the odds 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 odds 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 considerably 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 consideration the financial consequences of their decision-making. Whether they’re spending money to have fun, look good, or to simply please others, the spenders are likely to incur large amounts of debt which can take a long period of time to repay. Consequently, their likelihood of financial success are noticeably inhibited. Saving money is the key to financial success, so to prevent overspending, the spenders need to consider putting together a budget to observe their spending habits and additionally, review 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 fixing the issue.
- The Ignorants
The ignorants are normally the type of folks that are financially uneducated and have no interest in improving their fiscal skills. The ignorants may have a similar rationality 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 crucial 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 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 tend to pass up on opportunities to make money purely because they’re afraid they won’t succeed. When it relates to 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 trouble with the pessimists is that by avoiding all risks, they will feel more safe, and this will impede their chances 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 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 mentioned above, however these are perhaps the most common personality traits that inhibits financial growth and can lead to money difficulties. 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 certain personality traits doesn’t suggest that you can’t reshape some of them with time to be more financially responsible. If you need any assistance with your finances, or you’ve ended up facing a mountain of debt due to overspending, speak to Bankruptcy Experts Gosford on 1300 795 575 for assistance, or visit http://www.bankruptcyexpertsgosford.com.au for additional information.