When it relates to money, a person’s personality plays a substantial 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 revelation that there are various types of personalities that are more likely to have money problems than others. It’s difficult to modify your personality traits, especially when you’re older, so simply recognising how your personality affects your financial decisions may help you make better financial decisions down the road. It’s certainly an important topic to understand, as money difficulties can exacerbate rather quickly and you can end up in hot water within the blink of an eye. This article will examine four different personality types whom are more likely to have money issues, coupled with some recommended ways to improve your financial situation if you fall into one of these personality categories.
Fiscally speaking, the higher the risk the higher the reward, but the chances of experiencing high risk success is significantly low. Some people 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 people take pleasure in. Statistically, the chances 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 combination of high-risk and low-risk investments will greatly improve their financial future.
- The Spenders
Regardless of whether they’re wealthy or not, the spenders are the types of people who live life to the fullest without thinking of the financial implications of their decision-making. Whether they’re spending money to enjoy themselves, look good, or to simply please others, the spenders are more likely to acquire substantial amounts of debt which can take a long period of time to repay. Due to this fact, their opportunity of financial success are significantly restricted. Saving money is the key to financial success, so to avoid overspending, the spenders should consider setting up a budget to monitor their spending habits and additionally, analyse 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 solving the problem.
- The Ignorants
The ignorants are frequently the type of folks that are financially uneducated and have no interest in improving their monetary skills. The ignorants may have a similar reasoning to the risk-takers in that they want to ‘live life to the fullest’ and as a result, spend all of their money and wind 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. As opposed to thinking about now, they should attempt to think about how spending their money now will impact 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 stark 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 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 problem with the pessimists is that by avoiding all risks, they will feel more protected, and this will restrict their opportunity 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 that they have a well-balanced portfolio that is low-risk and offers an opportunity for a good return.
There are of course many other personality types than the ones detailed above, however these are perhaps the most common personality traits that inhibits financial growth and can result in money issues. In today’s world, money is without question exceptionally 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 adjust some of them over time to be more financially responsible. If you need any help with your finances, or you’ve ended up facing a mountain of debt as a result of overspending, phone Bankruptcy Experts Fremantle on 1300 795 575 for assistance, or visit http://www.bankruptcyexpertsfremantle.com.au for more information.