When it concerns money, a person’s personality serves an important 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 revelation that there are some personality types that are more likely to have money troubles than others. It’s tough to modify your personality traits, in particular when you’re older, so simply understanding how your personality has an effect on your financial decisions may help you make better financial decisions down the road. It’s undoubtedly an important topic to understand, as money problems can magnify rapidly and you can find yourself in deep water within the blink of an eye. This article will explore four different personality types whom are more likely to have money concerns, in conjunction with some suggested ways to improve your financial situation if you fall under one of these personality groups.
- The Risk-Takers
Financially speaking, the higher the risk the higher the reward, but the probability of experiencing high risk success is significantly low. Some people are born as risk-takers, others develop this personality trait with time; but the majority of the time, it’s the thrill of the risk that these types of people take pleasure in. Statistically, the odds of financial success for the risk-takers are low, so it is essential for these types of folks 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 combination of high-risk and low-risk investments will considerably improve their financial future.
- The Spenders
Regardless if they’re wealthy or not, the spenders are the types of folks 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 more likely to incur significant amounts of debt which can take a long period of time to repay. For this reason, their chances of financial success are significantly restricted. Saving money is the key to financial success, so to prevent overspending, the spenders need to consider developing a budget to keep track of their spending habits and additionally, inspect the triggers that cause them to spend their money to begin with. Facing the triggers that cause these types of people to overspend is the key to resolving the issue.
- The Ignorants
The ignorants are commonly the type of folks 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 such, spend all of their money and end up in debt. It’s essential 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 try 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 typically pass up on opportunities to make money simply because they’re afraid 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 safe, and this will impair 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 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 specified above, however these are perhaps the most common personality traits that impairs financial growth and can lead to money issues. In today’s world, money is without question extremely 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 indicate that you can’t alter some of them with time to be more financially responsible. If you need any support with your finances, or you’ve ended up facing a mountain of debt due to overspending, speak to Bankruptcy Experts Lismore on 1300 795 575 for assistance, or visit www.bankruptcyexpertslismore.com.au for more details.