When it concerns money, a person’s personality represents a considerable role in their financial decision-making. Everyone is unique, and that’s what makes us human, so it really shouldn’t come as a surprise that there are specific personality types that are more likely to have money issues than others. It’s hard to reshape your personality traits, especially when you’re older, so simply recognising how your personality has an effect on your financial decisions may help you make better financial decisions in the future. It’s without a doubt an important topic to understand, as money problems can exacerbate rather quickly and you can end up in hot water within the blink of an eye. This blog will investigate 4 different types of personalities whom are more likely to have money concerns, in addition to some suggested ways to improve your financial situation if you fall under one of these personality types.
- The Risk-Takers
Fiscally speaking, the higher the risk the higher the reward, but the chances of experiencing high risk success is notably low. Some folks are born as risk-takers, others develop this personality trait over time; but in most cases, 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 individuals to diversify their risks to increase their odds 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 drastically 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 taking into consideration the financial implications 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 accumulate substantial amounts of debt which can take a very long time to repay. Consequently, their likelihood of financial success are greatly restricted. Saving money is the key to financial success, so to prevent overspending, the spenders need to consider putting together a budget to keep track of their spending habits and at the same time, investigate the triggers that cause them to spend their money in the first place. Facing 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 monetary skills. The ignorants may have a similar rationality to the risk-takers in that they want to ‘live life to the fullest’ and as a result, spend all of their money and find themselves 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. 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 blog posts and articles. Who knows, they might actually enjoy it?
- The Pessimists
In stark contrast to the risk-takers, the pessimists have a tendency pass up on opportunities to make money purely because they’re afraid they won’t succeed. When it involves large investments like purchasing 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 opportunity of financial growth and success. An ideal 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 clearly many other personality types than the ones discussed above, however these are likely the most common personality traits that inhibits financial growth and can lead to money difficulties. 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 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 caused by overspending, talk to Bankruptcy Experts Taree on 1300 795 575 for assistance, or visit www.bankruptcyexpertstaree.com.au for more information.