When it concerns money, a person’s personality serves 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 surprise that there are certain personality types that are more likely to have money complications than others. It’s tough to change your personality traits, particularly when you’re older, so simply realising how your personality impacts your financial decisions may help you make better financial decisions in the future. It’s definitely 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 article will have a look at 4 different personality types whom are more likely to have money difficulties, along with some suggested 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 odds of experiencing high risk success is substantially low. Some people are born as risk-takers, others develop this personality trait with time; but most of the time, it’s the thrill of the risk that these types of people relish. Statistically, the odds of financial success for the risk-takers are low, so it is vital for these types of people to diversify their risks to increase their probability of financial success. These individuals 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 noticeably improve their financial future.
- The Spenders
No matter if they’re wealthy or not, the spenders are the types of folks who live life to the fullest without contemplating the financial effects of their decision-making. Whether they’re spending money to have fun, look good, or to simply please others, the spenders are more likely to incur significant amounts of debt which can take a very long time to repay. Subsequently, their likelihood of financial success are substantially impaired. Saving money is the key to financial success, so to avoid overspending, the spenders need to consider setting up a budget to monitor their spending habits and at the same time, review the triggers that cause them to spend their money in the first place. Addressing 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 people 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 wind up in debt. It’s essential that people 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 try to think about how spending their money now will affect 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 generally pass up on opportunities to make money simply because they fear they won’t succeed. When it involves 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 challenge with the pessimists is that by avoiding all risks, they will feel more protected, and this will impair their opportunity of financial growth and success. A good solution for the pessimists is to diversify their investments in a wide-range of markets to make certain 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 specified above, however these are perhaps the most common personality traits that impedes financial growth and can lead to money problems. 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 particular personality traits doesn’t mean that you can’t adjust 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 caused by overspending, talk to Bankruptcy Experts Mackay on 1300 795 575 for assistance, or visit www.bankruptcyexpertsmackay.com.au for more details.