When it relates to money, a person’s personality takes on a meaningful 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 various types of personalities that are more likely to have money problems than others. It’s tough to adjust your personality traits, specifically when you’re older, so simply comprehending how your personality impacts your financial decisions may help you make better financial decisions in the future. It’s without a doubt an important topic to understand, as money complications can magnify rapidly and you can end up in deep 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, together with some suggested ways to improve your financial situation if you fall into one of these personality groups.
- The Risk-Takers
Fiscally speaking, the higher the risk the higher the reward, but the probability of experiencing high risk success is notably low. Some individuals are born as risk-takers, others develop this personality trait gradually; but for the most parts, it’s the thrill of the risk that these types of individuals enjoy. Statistically, the likelihood 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 odds 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 greatly improve their financial future.
- The Spenders
No matter if they’re wealthy or not, the spenders are the types of people 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 likely to incur enormous amounts of debt which can take a long period of time to repay. Due to this fact, their opportunity of financial success are significantly hindered. Saving money is the key to financial success, so to prevent overspending, the spenders should consider setting up a budget to keep track of 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 resolving the problem.
- The Ignorants
The ignorants are typically the type of people 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 consequently, spend all of their money and end up 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 attempt to think about how spending their money now will have an effect on 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 purely because they’re afraid they won’t succeed. When it involves large investments like purchasing a house or investing in the stock market, the pessimist will avoid taking any risks for fear of losing their hard-earned money. The trouble with the pessimists is that by avoiding all risks, they will feel more safe, and this will restrict their likelihood of financial growth and success. An effective solution for the pessimists is to diversify their investments in a wide-range of markets to ensure 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 probably the most common personality traits that impedes financial growth and can result in money concerns. 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 indicate that you can’t reshape some of them over time to be more financially responsible. If you need any support with your finances, or you’ve found yourself facing a mountain of debt due to overspending, phone Bankruptcy Experts Shellharbour on 1300 795 575 for assistance, or visit http://www.bankruptcyexpertsshellharbour.com.au for additional information.