When it comes down to money, a person’s personality takes on a considerable 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 particular personality types that are more likely to have money complications than others. It’s hard to change your personality traits, specifically when you’re older, so simply having an understanding of how your personality impacts your financial decisions can help you make better financial decisions down the road. It’s surely 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 post will investigate 4 different personality types whom are more likely to have money challenges, along with some recommended ways to improve your financial situation if you fall into one of these personality types.
- The Risk-Takers
Financially speaking, the higher the risk the higher the reward, but the probability of experiencing high risk success is significantly low. Some folks are born as risk-takers, others develop this personality trait with time; but the majority of the time, it’s the thrill of the risk that these types of individuals revel in. Statistically, the likelihood of financial success for the risk-takers are low, so it is essential 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 drastically 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 consequences of their decision-making. Whether they’re spending money to have a great time, look good, or to simply please others, the spenders are likely to accumulate huge amounts of debt which can take a long period of time to repay. Due to this fact, their chances of financial success are noticeably inhibited. Saving money is the key to financial success, so to avoid overspending, the spenders need to consider setting up a budget to track their spending habits and additionally, analyse the triggers that cause them to spend their money to begin with. Facing the triggers that cause these types of people to overspend is the key to solving the problem.
- The Ignorants
The ignorants are generally the type of individuals 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 essential that individuals 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 attempt 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 have the tendency to pass up on opportunities to make money simply because they’re afraid they won’t succeed. When it comes 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 concern with the pessimists is that by avoiding all risks, they will feel more secure, and this will impair their opportunity of financial growth and success. An ideal 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 detailed above, however these are perhaps the most common personality traits that restricts financial growth and can lead to 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 specific personality traits doesn’t imply that you can’t change some of them with time to be more financially responsible. If you need any assistance with your finances, or you’ve ended up facing a mountain of debt due to overspending, contact Bankruptcy Experts Mildura on 1300 795 575 for assistance, or visit http://www.bankruptcyexpertsmildura.com.au for more details.