When it comes down to money, a person’s personality plays a significant role in their financial decision-making. Everyone is unique, and that’s what makes us human, so it really shouldn’t come as a shock that there are various personality types that are more likely to have money complications than others. It’s hard to change your personality traits, especially when you’re older, so simply being aware of how your personality affects your financial decisions can help you make better financial decisions down the road. It’s most certainly an important topic to understand, as money troubles can compound rather quickly and you can end up in hot water within the blink of an eye. This post will have a look at four different personality types whom are more likely to have money concerns, as well as some suggested ways to improve your financial situation if you fall into one of these personality groups.
- The Risk-Takers
Financially 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 in time; but in many cases, it’s the thrill of the risk that these types of people relish. Statistically, the chances of financial success for the risk-takers are low, so it is crucial for these types of people 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 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 taking into account the financial consequences of their decision-making. Whether they’re spending money to have a great time, look good, or to simply please others, the spenders are more likely to accumulate huge amounts of debt which can take a long time to repay. For this reason, their chances of financial success are noticeably impaired. Saving money is the key to financial success, so to prevent overspending, the spenders need to consider creating a budget to track their spending habits and additionally, study 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 resolving the issue.
- The Ignorants
The ignorants are generally the type of people that are financially uneducated and have no interest in improving their financial skills. The ignorants may have a similar mindset to the risk-takers in that they want to ‘live life to the fullest’ and because of this, spend all of their money and find themselves in debt. It’s essential that folks 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 generally pass up on opportunities to make money simply because they fear they won’t succeed. When it comes to 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 secure, and this will impair 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 certain 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 detailed above, however these are perhaps the most common personality traits that inhibits financial growth and can result in 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 particular personality traits doesn’t signify that you can’t reshape some of them in time to be more financially responsible. If you need any help with your finances, or you’ve ended up facing a mountain of debt due to overspending, call Bankruptcy Experts Port Macquarie on 1300 795 575 for assistance, or visit http://www.bankruptcyexpertsportmacquarie.com.au for additional information.