When it comes to money, a person’s personality serves a considerable 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 revelation that there are various types of personalities that are more likely to have money complications than others. It’s tough to modify your personality traits, in particular when you’re older, so simply knowing how your personality impacts your financial decisions can help you make better financial decisions down the road. It’s certainly an important topic to understand, as money problems can exacerbate quickly and you can find yourself in hot water within the blink of an eye. This post will explore 4 different types of personalities whom are more likely to have money problems, in addition to some suggested ways to improve your financial situation if you fall into one of these personality classifications.
- The Risk-Takers
Economically speaking, the higher the risk the higher the reward, but the possibility of experiencing high risk success is notably low. Some people are born as risk-takers, others develop this personality trait over time; but for the most parts, it’s the thrill of the risk that these types of people take pleasure in. Statistically, the probability 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 mix of high-risk and low-risk investments will drastically improve their financial future.
- The Spenders
No matter if they’re wealthy or not, the spenders are the types of individuals who live life to the fullest without taking into consideration the financial repercussions 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 large amounts of debt which can take a long period of time to repay. As a result, their opportunity of financial success are greatly restricted. Saving money is the key to financial success, so to prevent overspending, the spenders should 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. Addressing the triggers that cause these types of people to overspend is the key to fixing the problem.
- The Ignorants
The ignorants are normally the type of folks that are financially uneducated and have no interest in improving their fiscal 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 find themselves in debt. It’s important that folks with this personality trait learn the value of money and how it can be used to provide a better future. Rather than thinking about now, they should aim to think about how spending their money now will affect 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 simply because they’re afraid they won’t succeed. When it involves 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 issue with the pessimists is that by avoiding all risks, they will feel more secure, and this will hinder their likelihood of financial growth and success. A good 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 undoubtedly many other types of personalities than the ones mentioned above, however these are perhaps the most common personality traits that impedes financial growth and can cause money difficulties. 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 specific personality traits doesn’t signify that you can’t adjust some of them in time to be more financially responsible. If you need any assistance with your finances, or you’ve found yourself facing a mountain of debt as a result of overspending, call Bankruptcy Experts Northern Rivers on 1300 795 575 for assistance, or visit http://www.bankruptcyexpertsnorthernrivers.com.au for more details.