When it involves money, a person’s personality represents a notable role in their financial decision-making. Everyone is unique, and that’s what makes us human, so it really shouldn’t come as a surprise that there are certain types of personalities that are more likely to have money problems than others. It’s difficult to alter your personality traits, particularly when you’re older, so simply recognising how your personality has an effect on your financial decisions can help you make better financial decisions in the future. It’s surely an important topic to understand, as money troubles can exacerbate rapidly and you can end up in hot water within the blink of an eye. This blog will explore 4 different types of personalities whom are more likely to have money concerns, in addition to some suggested ways to improve your financial situation if you fall into one of these personality groups.
Economically speaking, the higher the risk the higher the reward, but the likelihood of experiencing high risk success is substantially low. Some individuals 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 folks take pleasure in. Statistically, the chances of financial success for the risk-takers are low, so it is crucial for these types of individuals 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 mix of high-risk and low-risk investments will drastically improve their financial future.
- The Spenders
Whether they’re wealthy or not, the spenders are the types of individuals who live life to the fullest without thinking of the financial consequences of their decision-making. Whether they’re spending money to have a great time, look good, or to simply please others, the spenders are more likely to accumulate large amounts of debt which can take a very long time to repay. Due to this fact, their opportunity of financial success are greatly hindered. Saving money is the key to financial success, so to prevent overspending, the spenders should consider setting up a budget to observe their spending habits and additionally, inspect the triggers that cause them to spend their money in the first place. Dealing with the triggers that cause these types of people to overspend is the key to resolving the problem.
- The Ignorants
The ignorants are often the type of people 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 because of this, spend all of their money and find themselves 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. As opposed to 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 blog posts and articles. Who knows, they might actually enjoy it?
- The Pessimists
In stark contrast to the risk-takers, the pessimists often pass up on opportunities to make money purely because they fear they won’t succeed. When it comes to 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 problem with the pessimists is that by avoiding all risks, they will feel more protected, and this will hinder their chances 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 types of personalities than the ones detailed above, however these are perhaps the most common personality traits that restricts financial growth and can lead to money concerns. In today’s world, money is without question remarkably 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 signify that you can’t modify some of them with time to be more financially responsible. If you need any support with your finances, or you’ve ended up facing a mountain of debt due to overspending, get in touch with Bankruptcy Experts Albury on 1300 795 575 for assistance, or visit www.bankruptcyexpertsalbury.com.au for more details.