When it relates to money, a person’s personality takes on a notable role in their financial decision-making. Everybody is unique, and that’s what makes us human, so it really shouldn’t come as a shock that there are certain types of personalities that are more likely to have money problems than others. It’s tough to alter your personality traits, specifically when you’re older, so simply knowing how your personality impacts your financial decisions may help you make better financial decisions in the future. It’s undeniably an important topic to understand, as money problems can compound quickly and you can end up in deep water within the blink of an eye. This article will look at four different personality types whom are more likely to have money troubles, alongside 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 considerably 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 take pleasure in. Statistically, the chances of financial success for the risk-takers are low, so it is crucial for these types of folks to diversify their risks to increase their likelihood 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 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 considering 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 more likely to incur massive amounts of debt which can take a long period of time to repay. Due to this fact, their chances of financial success are substantially impaired. 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 additionally, study 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 solving the problem.
- The Ignorants
The ignorants are usually the type of folks that are financially uneducated and have no interest in improving their fiscal skills. The ignorants may have a similar mindset to the risk-takers in that they want to ‘live life to the fullest’ and because of this, spend all of their money and end up in debt. It’s essential 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 try to think about how spending their money now will have an effect 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 typically pass up on opportunities to make money purely because they fear 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 challenge 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 effective solution for the pessimists is to diversify their investments in a wide-range of markets to make certain that they have a well-balanced portfolio that is low-risk and offers an opportunity for a good return.
There are certainly many other personality types than the ones detailed above, however these are probably the most common personality traits that hinders financial growth and can lead to money difficulties. 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 certain personality traits doesn’t mean that you can’t reshape some of them in time to be more financially responsible. If you need any assistance with your finances, or you’ve found yourself facing a mountain of debt due to overspending, phone Bankruptcy Experts Emerald on 1300 795 575 for assistance, or visit http://www.bankruptcyexpertsemerald.com.au for more information.