When it involves money, a person’s personality serves a considerable 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 specific personality types that are more likely to have money complications than others. It’s difficult to alter your personality traits, particularly when you’re older, so simply comprehending how your personality impacts your financial decisions can help you make better financial decisions in the future. It’s certainly an important topic to understand, as money issues can intensify rather quickly and you can find yourself in hot water within the blink of an eye. This article will look at four different personality types whom are more likely to have money troubles, in addition to some recommended ways to improve your financial situation if you fall into one of these personality groups.
- The Risk-Takers
Fiscally speaking, the higher the risk the higher the reward, but the possibility of experiencing high risk success is considerably low. Some people are born as risk-takers, others develop this personality trait with time; but most of the time, it’s the thrill of the risk that these types of individuals revel in. Statistically, the probability of financial success for the risk-takers are low, so it is vital for these types of people to diversify their risks to increase their chances 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 dramatically improve their financial future.
- The Spenders
Whether they’re wealthy or not, the spenders are the types of folks who live life to the fullest without thinking about the financial repercussions of their decision-making. Whether they’re spending money to enjoy themselves, look good, or to simply please others, the spenders are more likely to incur considerable amounts of debt which can take a long period of time to repay. As a result, their likelihood of financial success are considerably restricted. Saving money is the key to financial success, so to prevent overspending, the spenders should consider developing a budget to observe their spending habits and additionally, study 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 usually the type of folks that are financially uneducated and have no interest in improving their monetary skills. The ignorants may have a similar reasoning 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 imperative 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 aim to think about how spending their money now will impact their future. Take an interest in learning how to budget by reading online blogs and articles. Who knows, they might actually enjoy it?
- The Pessimists
In bleak contrast to the risk-takers, the pessimists have the tendency to 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 market, 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 protected, and this will restrict their opportunity 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 they have a well-balanced portfolio that is low-risk and offers an opportunity for a good return.
There are undoubtedly many other types of personalities than the ones mentioned above, however these are probably the most common personality traits that hinders 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 certain personality traits doesn’t imply that you can’t alter some of them with time to be more financially responsible. If you need any assistance with your finances, or you’ve found yourself facing a mountain of debt caused by overspending, reach out to Bankruptcy Experts Whitsundays on 1300 795 575 for assistance, or visit https://www.bankruptcyexpertswhitsundays.com.au for more details.