When it involves money, a person’s personality takes on 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 surprise that there are certain personality types that are more likely to have money concerns than others. It’s hard to alter your personality traits, specifically when you’re older, so simply recognising how your personality influences your financial decisions may help you make better financial decisions in the future. It’s certainly an important topic to understand, as money difficulties can intensify quickly and you can find yourself in deep water within the blink of an eye. This blog will have a look at 4 different personality types whom are more likely to have money problems, in addition to some recommended ways to improve your financial situation if you fall under one of these personality categories.
- The Risk-Takers
Fiscally speaking, the higher the risk the higher the reward, but the odds of experiencing high risk success is considerably low. Some individuals 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 revel in. Statistically, the chances of financial success for the risk-takers are low, so it’s important for these types of people to diversify their risks to increase their probability of financial success. These folks can make high-risk investments, but they can’t put all their eggs in one basket. A blend of high-risk and low-risk investments will substantially improve their financial future.
- The Spenders
Regardless of whether they’re wealthy or not, the spenders are the types of folks who live life to the fullest without thinking of 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 likely to acquire huge amounts of debt which can take a long period of time to repay. Due to this fact, their likelihood of financial success are considerably impeded. Saving money is the key to financial success, so to avoid overspending, the spenders should consider developing a budget to observe their spending habits and at the same time, study 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 often the type of individuals that are financially uneducated and have no interest in improving their monetary 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 a result, spend all of their money and end up 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 try 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 blog posts 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 simply because they’re afraid they won’t succeed. When it relates 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 challenge with the pessimists is that by avoiding all risks, they will feel more protected, and this will hinder their chances of financial growth and success. An ideal 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 undoubtedly many other types of personalities than the ones detailed above, however these are perhaps the most common personality traits that impedes financial growth and can cause money concerns. In today’s world, money is without question remarkably 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 indicate that you can’t reshape some of them with time to be more financially responsible. If you need any support with your finances, or you’ve ended up facing a mountain of debt due to overspending, get in touch with Bankruptcy Experts Hobart on 1300 795 575 for assistance, or visit http://www.bankruptcyexpertshobart.com.au for more details.