When it involves money, a person’s personality represents 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 specific types of personalities that are more likely to have money problems than others. It’s tough to modify your personality traits, especially when you’re older, so simply understanding how your personality influences your financial decisions can help you make better financial decisions down the road. It’s undoubtedly an important topic to understand, as money complications can exacerbate rather quickly and you can find yourself in deep water within the blink of an eye. This post will examine four different personality types whom are more likely to have money issues, together with some recommended ways to improve your financial situation if you fall under one of these personality categories.
- The Risk-Takers
Financially speaking, the higher the risk the higher the reward, but the odds of experiencing high risk success is notably low. Some people are born as risk-takers, others develop this personality trait with time; but for the most parts, it’s the thrill of the risk that these types of individuals enjoy. Statistically, the probability of financial success for the risk-takers are low, so it’s important for these types of individuals 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 considerably improve their financial future.
- The Spenders
Regardless of whether they’re wealthy or not, the spenders are the types of people who live life to the fullest without considering the financial effects of their decision-making. Whether they’re spending money to have a good time, look good, or to simply please others, the spenders are more likely to accumulate large amounts of debt which can take a long period of time to repay. For this reason, their likelihood of financial success are greatly inhibited. Saving money is the key to financial success, so to prevent overspending, the spenders need to consider forming a budget to monitor their spending habits and additionally, analyse the triggers that cause them to spend their money in the first place. Dealing with the triggers that cause these types of people to overspend is the key to resolving the issue.
- The Ignorants
The ignorants are frequently the type of people that are financially uneducated and have no interest in improving their monetary 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 because of this, spend all of their money and wind up in debt. It’s crucial that people 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 affect 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 stark 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 relates to large investments like buying a house or investing in the stock exchange, 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 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 that they have a well-balanced portfolio that is low-risk and offers an opportunity for a good return.
There are obviously many other types of personalities than the ones discussed above, however these are likely the most common personality traits that impedes financial growth and can lead to money concerns. 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 signify 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 as a result of overspending, talk with Bankruptcy Experts Adelaide on 1300 795 575 for assistance, or visit http://www.bankruptcyexpertsadelaide.com.au for more information.