When it concerns money, a person’s personality serves a meaningful 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 certain personality types that are more likely to have money troubles than others. It’s difficult to reshape your personality traits, specifically when you’re older, so simply understanding how your personality impacts your financial decisions may help you make better financial decisions in the future. It’s surely an important topic to understand, as money complications can magnify quickly and you can find yourself in hot water within the blink of an eye. This blog will examine four different personality types whom are more likely to have money problems, in addition to 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 chances of experiencing high risk success is significantly low. Some individuals are born as risk-takers, others develop this personality trait with time; but in most cases, it’s the thrill of the risk that these types of individuals relish. Statistically, the likelihood of financial success for the risk-takers are low, so it is vital for these types of folks to diversify their risks to increase their odds of financial success. These folks 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 greatly improve their financial future.
- The Spenders
Whether they’re wealthy or not, the spenders are the types of people who live life to the fullest without taking into consideration 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 more likely to accumulate significant amounts of debt which can take a long time to repay. For this reason, their chances of financial success are considerably inhibited. Saving money is the key to financial success, so to avoid overspending, the spenders should consider putting together a budget to observe their spending habits and at the same time, explore the triggers that cause them to spend their money to begin with. Confronting the triggers that cause these types of people to overspend is the key to solving the problem.
- The Ignorants
The ignorants are often the type of individuals 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 imperative that individuals 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 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 bleak contrast to the risk-takers, the pessimists typically pass up on opportunities to make money purely because they’re afraid they won’t succeed. When it comes down to large investments like buying a house or investing in the stock market, the pessimist will avoid taking any risks for fear of losing their hard-earned money. The problem 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. 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 certainly many other personality types than the ones detailed above, however these are perhaps the most common personality traits that hinders financial growth and can result in money concerns. In today’s world, money is without question exceptionally important not only for survival, but also to be able to enjoy the only life we have. Just because you have specific personality traits doesn’t imply that you can’t adjust 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 caused by overspending, phone Bankruptcy Experts Wangaratta on 1300 795 575 for assistance, or visit http://www.bankruptcyexpertswangaratta.com.au for more information.