When it relates to money, a person’s personality serves a significant 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 shock that there are certain personality types that are more likely to have money issues than others. It’s difficult to change your personality traits, specifically when you’re older, so simply realising how your personality affects your financial decisions can help you make better financial decisions down the road. It’s without a doubt an important topic to understand, as money complications can exacerbate rapidly and you can end up in hot water within the blink of an eye. This post will look into 4 different personality types 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 groups.
Fiscally speaking, the higher the risk the higher the reward, but the possibility of experiencing high risk success is significantly low. Some folks are born as risk-takers, others develop this personality trait in time; but most of the time, it’s the thrill of the risk that these types of folks relish. Statistically, the probability of financial success for the risk-takers are low, so it’s important for these types of people 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 mixture of high-risk and low-risk investments will considerably 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 acquire large amounts of debt which can take a long time to repay. For this reason, their chances of financial success are substantially restricted. Saving money is the key to financial success, so to prevent overspending, the spenders should consider creating a budget to keep track of their spending habits and additionally, inspect 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 resolving the issue.
- The Ignorants
The ignorants are typically the type of folks that are financially uneducated and have no interest in improving their fiscal skills. The ignorants may have a similar way of thinking 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 vital that folks 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 an effect on their future. Take an interest in learning how to budget by reading online blogs and articles. Who knows, they might actually enjoy it?
- The Pessimists
In bleak contrast to the risk-takers, the pessimists typically pass up on opportunities to make money purely because they’re afraid they won’t succeed. When it relates to large investments like buying a house or investing in the stock exchange, the pessimist will avoid taking any risks for fear of losing their hard-earned money. The issue with the pessimists is that by avoiding all risks, they will feel more secure, and this will hinder their likelihood 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 naturally many other personality types than the ones specified above, however these are probably the most common personality traits that impairs financial growth and can cause money problems. 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 particular personality traits doesn’t suggest that you can’t modify some of them in time to be more financially responsible. If you need any help with your finances, or you’ve found yourself facing a mountain of debt as a result of overspending, talk with Bankruptcy Experts Australia on 1300 795 575 for assistance, or visit www.bankruptcyexpertsaustralia.com.au for additional information.