When it concerns money, a person’s personality serves an important 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 some types of personalities that are more likely to have money troubles than others. It’s difficult to modify your personality traits, especially when you’re older, so simply recognising how your personality impacts your financial decisions may help you make better financial decisions in the future. It’s most certainly an important topic to understand, as money issues can compound rather quickly and you can find yourself in deep water within the blink of an eye. This post will look into four different personality types whom are more likely to have money complications, in conjunction with 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 odds of experiencing high risk success is considerably low. Some individuals 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 people take pleasure in. Statistically, the odds of financial success for the risk-takers are low, so it’s important for these types of folks to diversify their risks to increase their probability of financial success. These people can make high-risk investments, but they can’t put all their eggs in one basket. A mix of high-risk and low-risk investments will dramatically 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 thinking about the financial effects of their decision-making. Whether they’re spending money to have a great time, look good, or to simply please others, the spenders are likely to acquire huge amounts of debt which can take a very long time to repay. Subsequently, their opportunity of financial success are considerably impeded. 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, inspect the triggers that cause them to spend their money in the first place. Addressing the triggers that cause these types of people to overspend is the key to resolving the problem.
- The Ignorants
The ignorants are typically the type of individuals that are financially uneducated and have no interest in improving their financial skills. The ignorants may have a similar mentality 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 important 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 try to think about how spending their money now will impact their future. Take an interest in learning how to budget by reading online weblogs 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’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 secure, and this will impair 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 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 detailed above, however these are likely the most common personality traits that impairs financial growth and can result in money issues. 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 mean 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, speak to Bankruptcy Experts Geraldton on 1300 795 575 for assistance, or visit www.bankruptcyexpertsgeraldton.com.au for more details.