When it comes down to money, a person’s personality takes on a considerable role in their financial decision-making. Each person is unique, and that’s what makes us human, so it really shouldn’t come as a shock that there are some personality types that are more likely to have money complications than others. It’s tough to reshape your personality traits, especially 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 unquestionably an important topic to understand, as money problems can exacerbate quickly and you can find yourself in hot water within the blink of an eye. This article will look into four different types of personalities whom are more likely to have money problems, in conjunction with some suggested ways to improve your financial situation if you fall under one of these personality categories.
- The Risk-Takers
Economically speaking, the higher the risk the higher the reward, but the possibility of experiencing high risk success is substantially low. Some individuals are born as risk-takers, others develop this personality trait in time; but in most cases, it’s the thrill of the risk that these types of people take pleasure in. Statistically, the chances of financial success for the risk-takers are low, so it is vital for these types of people to diversify their risks to increase their chances of financial success. These individuals 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 dramatically improve their financial future.
- The Spenders
Regardless of whether they’re wealthy or not, the spenders are the types of individuals who live life to the fullest without considering 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 acquire substantial amounts of debt which can take a long time to repay. Consequently, their likelihood of financial success are substantially hindered. Saving money is the key to financial success, so to avoid overspending, the spenders should consider developing 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 normally the type of folks that are financially uneducated and have no interest in improving their monetary skills. The ignorants may have a similar reasoning to the risk-takers in that they want to ‘live life to the fullest’ and as a result, spend all of their money and end up in debt. It’s crucial that people with this personality trait learn the value of money and how it can be used to provide a better future. Instead of 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 blog posts and articles. Who knows, they might actually enjoy it?
- The Pessimists
In stark contrast to the risk-takers, the pessimists have the tendency to pass up on opportunities to make money simply because they fear they won’t succeed. When it involves 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 impede 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 personality types than the ones specified above, however these are likely the most common personality traits that impedes financial growth and can lead to money problems. 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 particular personality traits doesn’t signify that you can’t change 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, speak with Bankruptcy Experts Gladstone on 1300 795 575 for assistance, or visit http://www.bankruptcyexpertsgladstone.com.au for more details.