When it concerns money, a person’s personality serves a substantial role in their financial decision-making. Each person 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 problems than others. It’s tough to change your personality traits, in particular when you’re older, so simply comprehending how your personality impacts your financial decisions may help you make better financial decisions down the road. It’s surely an important topic to understand, as money issues can magnify rapidly and you can find yourself 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 complications, along with some suggested ways to improve your financial situation if you fall into one of these personality categories.
- The Risk-Takers
Fiscally speaking, the higher the risk the higher the reward, but the possibility of experiencing high risk success is notably low. Some people are born as risk-takers, others develop this personality trait in time; but the majority of the time, it’s the thrill of the risk that these types of people take pleasure in. 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 combination 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 folks who live life to the fullest without thinking of the financial effects of their decision-making. Whether they’re spending money to enjoy themselves, look good, or to simply please others, the spenders are likely to accumulate considerable amounts of debt which can take a very long time to repay. Due to this fact, their likelihood of financial success are significantly hindered. 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, analyse the triggers that cause them to spend their money in the first place. Confronting the triggers that cause these types of people to overspend is the key to solving the problem.
- The Ignorants
The ignorants are usually the type of folks that are financially uneducated and have no interest in improving their fiscal skills. The ignorants may have a similar frame of mind to the risk-takers in that they want to ‘live life to the fullest’ and as such, spend all of their money and wind up in debt. It’s crucial 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 have a bearing 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 stark contrast to the risk-takers, the pessimists have a tendency pass up on opportunities to make money purely because they’re afraid they won’t succeed. When it concerns 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 issue with the pessimists is that by avoiding all risks, they will feel more safe, and this will impede 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 certainly many other types of personalities than the ones discussed above, however these are probably the most common personality traits that impairs financial growth and can lead to money troubles. 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 certain personality traits doesn’t suggest that you can’t alter some of them in time to be more financially responsible. If you need any help with your finances, or you’ve found yourself facing a mountain of debt due to overspending, talk with Bankruptcy Experts Rockingham on 1300 795 575 for assistance, or visit http://www.bankruptcyexpertsrockingham.com.au for more information.