When it relates to money, a person’s personality takes on an important role in their financial decision-making. Everybody is unique, and that’s what makes us human, so it really shouldn’t come as a revelation that there are some personality types that are more likely to have money complications than others. It’s hard to alter your personality traits, specifically when you’re older, so simply having an understanding of how your personality influences your financial decisions may help you make better financial decisions down the road. It’s definitely an important topic to understand, as money issues can intensify rapidly and you can find yourself in deep water within the blink of an eye. This post will look at four different personality types whom are more likely to have money problems, coupled with some suggested ways to improve your financial situation if you fall into one of these personality types.
- The Risk-Takers
Fiscally speaking, the higher the risk the higher the reward, but the probability of experiencing high risk success is significantly low. Some individuals are born as risk-takers, others develop this personality trait in time; but the majority of the time, it’s the thrill of the risk that these types of individuals enjoy. Statistically, the likelihood 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 mixture 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 individuals who live life to the fullest without contemplating the financial repercussions of their decision-making. Whether they’re spending money to have a good time, look good, or to simply please others, the spenders are likely to acquire considerable amounts of debt which can take a long time to repay. As a result, their opportunity of financial success are significantly hindered. Saving money is the key to financial success, so to prevent overspending, the spenders should consider forming a budget to keep track of their spending habits and at the same time, analyse the triggers that cause them to spend their money to begin with. Dealing with the triggers that cause these types of people to overspend is the key to solving the problem.
- The Ignorants
The ignorants are often the type of folks that are financially uneducated and have no interest in improving their financial 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 consequently, spend all of their money and end up in debt. It’s important that people 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 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 stark contrast to the risk-takers, the pessimists tend to pass up on opportunities to make money simply because they’re afraid they won’t succeed. When it comes to large investments like purchasing 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 safe, and this will restrict their likelihood of financial growth and success. An effective 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 obviously many other personality types than the ones detailed above, however these are likely the most common personality traits that impedes financial growth and can lead to money troubles. 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 mean that you can’t modify some of them over 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, phone Bankruptcy Experts Wyong on 1300 795 575 for assistance, or visit http://www.bankruptcyexpertswyong.com.au for more details.