When it comes down to money, a person’s personality takes on a notable role in their financial decision-making. Everyone 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 complications than others. It’s tough to adjust your personality traits, in particular when you’re older, so simply understanding how your personality impacts your financial decisions may help you make better financial decisions down the road. It’s undeniably an important topic to understand, as money problems can compound rapidly and you can end up in hot water within the blink of an eye. This article will look at four different personality types whom are more likely to have money problems, along with some suggested ways to improve your financial situation if you fall into one of these personality classifications.
- The Risk-Takers
Fiscally speaking, the higher the risk the higher the reward, but the chances of experiencing high risk success is substantially low. Some people are born as risk-takers, others develop this personality trait in time; but in many cases, it’s the thrill of the risk that these types of individuals enjoy. Statistically, the chances 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 chances 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 considerably improve their financial future.
- The Spenders
No matter if they’re wealthy or not, the spenders are the types of folks who live life to the fullest without taking into account the financial implications of their decision-making. Whether they’re spending money to have fun, look good, or to simply please others, the spenders are likely to acquire huge amounts of debt which can take a long time to repay. As a result, their opportunity of financial success are considerably impaired. Saving money is the key to financial success, so to avoid overspending, the spenders need to consider setting up a budget to monitor their spending habits and additionally, inspect the triggers that cause them to spend their money in the first place. Confronting the triggers that cause these types of people to overspend is the key to fixing the issue.
- The Ignorants
The ignorants are generally the type of folks that are financially uneducated and have no interest in improving their financial 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 end up in debt. It’s critical 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 aim 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 weblogs and articles. Who knows, they might actually enjoy it?
- The Pessimists
In bleak contrast to the risk-takers, the pessimists tend to pass up on opportunities to make money simply because they fear they won’t succeed. When it comes 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 safe, and this will hinder their chances of financial growth and success. An effective solution for the pessimists is to diversify their investments in a wide-range of markets to make sure they have a well-balanced portfolio that is low-risk and offers an opportunity for a good return.
There are of course many other types of personalities than the ones specified above, however these are probably the most common personality traits that impedes financial growth and can result in money issues. 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 particular 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 Maitland on 1300 795 575 for assistance, or visit http://www.bankruptcyexpertsmaitland.com.au for more information.