When it comes to money, a person’s personality serves a major 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 particular types of personalities that are more likely to have money troubles than others. It’s tough to alter your personality traits, especially when you’re older, so simply knowing how your personality has an effect on your financial decisions can help you make better financial decisions in the future. It’s undeniably an important topic to understand, as money difficulties can exacerbate rapidly and you can end up in deep water within the blink of an eye. This blog will have a look at four different types of personalities whom are more likely to have money troubles, in conjunction with some recommended ways to improve your financial situation if you fall under one of these personality classifications.
Economically 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 gradually; but in many cases, it’s the thrill of the risk that these types of people relish. Statistically, the likelihood of financial success for the risk-takers are low, so it is crucial for these types of people to diversify their risks to increase their chances 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 substantially improve their financial future.
- The Spenders
Regardless if they’re wealthy or not, the spenders are the types of individuals who live life to the fullest without taking into account the financial consequences of their decision-making. Whether they’re spending money to enjoy themselves, look good, or to simply please others, the spenders are likely to acquire massive amounts of debt which can take a long time to repay. Consequently, their likelihood of financial success are noticeably inhibited. Saving money is the key to financial success, so to prevent overspending, the spenders need to consider developing a budget to track their spending habits and additionally, review the triggers that cause them to spend their money to begin with. 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 mentality to the risk-takers in that they want to ‘live life to the fullest’ and because of this, spend all of their money and wind up in debt. It’s critical 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 attempt 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 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 purely because they fear they won’t succeed. When it concerns 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 safe, and this will hinder 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 ensure 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 probably the most common personality traits that inhibits financial growth and can lead to money difficulties. In today’s world, money is without question incredibly 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 reshape some of them with time to be more financially responsible. If you need any support with your finances, or you’ve found yourself facing a mountain of debt as a result of overspending, get in touch with Bankruptcy Experts Hervey Bay on 1300 795 575 for assistance, or visit http://www.bankruptcyexpertsherveybay.com.au for additional information.