When it concerns money, a person’s personality serves a meaningful role in their financial decision-making. Everybody 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 reshape your personality traits, specifically 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 certainly an important topic to understand, as money complications can exacerbate rather quickly and you can find yourself in deep water within the blink of an eye. This blog will look into 4 different types of personalities whom are more likely to have money challenges, together with some recommended ways to improve your financial situation if you fall under 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 folks are born as risk-takers, others develop this personality trait gradually; but most of the time, it’s the thrill of the risk that these types of folks take pleasure in. Statistically, the probability of financial success for the risk-takers are low, so it is very 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 greatly improve their financial future.
- The Spenders
Regardless of whether they’re wealthy or not, the spenders are the types of people who live life to the fullest without taking into consideration 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 likely to incur considerable amounts of debt which can take a long period of time to repay. Consequently, their likelihood of financial success are substantially impaired. Saving money is the key to financial success, so to prevent overspending, the spenders should consider putting together a budget to observe their spending habits and additionally, examine 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 solving the problem.
- The Ignorants
The ignorants are frequently the type of individuals that are financially uneducated and have no interest in improving their monetary skills. The ignorants may have a similar frame of mind to the risk-takers in that they want to ‘live life to the fullest’ and as such, spend all of their money and find themselves in debt. It’s imperative 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 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 typically pass up on opportunities to make money simply because they’re afraid 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 problem with the pessimists is that by avoiding all risks, they will feel more safe, and this will impede 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 undoubtedly many other types of personalities than the ones discussed above, however these are likely the most common personality traits that impairs financial growth and can cause money troubles. 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 specific personality traits doesn’t indicate 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 ended up facing a mountain of debt as a result of overspending, speak to Gold Coast Bankruptcy Centre on 1300 795 575 for assistance, or visit www.goldcoastbankruptcycentre.com.au for additional information.