When it comes down to money, a person’s personality takes on a substantial 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 various personality types that are more likely to have money troubles than others. It’s difficult to change your personality traits, in particular when you’re older, so simply having an understanding of how your personality has an effect on your financial decisions may help you make better financial decisions down the road. It’s undeniably an important topic to understand, as money complications can magnify quickly and you can end up in deep water within the blink of an eye. This post will investigate four different personality types whom are more likely to have money issues, coupled with some suggested ways to improve your financial situation if you fall under one of these personality categories.
- The Risk-Takers
Financially speaking, the higher the risk the higher the reward, but the possibility of experiencing high risk success is considerably low. Some folks are born as risk-takers, others develop this personality trait with time; but the majority of the time, it’s the thrill of the risk that these types of individuals take pleasure in. Statistically, the probability 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 greatly improve their financial future.
- The Spenders
Regardless if they’re wealthy or not, the spenders are the types of folks who live life to the fullest without taking into consideration 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 likely to acquire considerable amounts of debt which can take a long period of time to repay. Consequently, their likelihood of financial success are noticeably inhibited. Saving money is the key to financial success, so to avoid overspending, the spenders should consider creating a budget to observe their spending habits and additionally, investigate 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 fixing the issue.
- The Ignorants
The ignorants are frequently the type of folks that are financially uneducated and have no interest in improving their monetary skills. The ignorants may have a similar mindset 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 vital 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 attempt to think about how spending their money now will impact 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 bleak contrast to the risk-takers, the pessimists often tend to pass up on opportunities to make money simply 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 challenge with the pessimists is that by avoiding all risks, they will feel more secure, and this will restrict their chances of financial growth and success. A good solution for the pessimists is to diversify their investments in a wide-range of markets to make sure 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 specified above, however these are perhaps the most common personality traits that hinders financial growth and can result in money problems. 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 indicate that you can’t alter 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 due to overspending, talk to Bankruptcy Experts Dubbo on 1300 795 575 for assistance, or visit http://www.bankruptcyexpertsdubbo.com.au for more details.