When it involves money, a person’s personality plays 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 revelation that there are some types of personalities that are more likely to have money complications than others. It’s difficult to adjust your personality traits, in particular when you’re older, so simply comprehending how your personality impacts your financial decisions may help you make better financial decisions down the road. It’s certainly an important topic to understand, as money issues can intensify rapidly and you can find yourself in deep water within the blink of an eye. This blog will look at 4 different types of personalities whom are more likely to have money issues, as well as some recommended ways to improve your financial situation if you fall under one of these personality categories.
Financially speaking, the higher the risk the higher the reward, but the chances of experiencing high risk success is significantly low. Some people are born as risk-takers, others develop this personality trait over time; but in most cases, 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 people to diversify their risks to increase their likelihood of financial success. These people 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 significantly 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 taking into consideration the financial repercussions of their decision-making. Whether they’re spending money to enjoy themselves, look good, or to simply please others, the spenders are more likely to accumulate enormous amounts of debt which can take a long period of time to repay. Consequently, their chances of financial success are greatly inhibited. Saving money is the key to financial success, so to prevent overspending, the spenders should consider creating a budget to monitor their spending habits and at the same time, 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 fixing the issue.
- The Ignorants
The ignorants are often the type of individuals that are financially uneducated and have no interest in improving their monetary skills. The ignorants may have a similar mentality to the risk-takers in that they want to ‘live life to the fullest’ and consequently, spend all of their money and find themselves in debt. It’s important that individuals 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 blogs and articles. Who knows, they might actually enjoy it?
- The Pessimists
In stark contrast to the risk-takers, the pessimists have a tendency pass up on opportunities to make money purely because they fear they won’t succeed. When it relates 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 trouble with the pessimists is that by avoiding all risks, they will feel more secure, and this will impair 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 that they have a well-balanced portfolio that is low-risk and offers an opportunity for a good return.
There are undoubtedly many other personality types than the ones detailed above, however these are probably the most common personality traits that inhibits financial growth and can cause money issues. 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 specific personality traits doesn’t mean that you can’t adjust 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, talk with Bankruptcy Experts Cairns on 1300 795 575 for assistance, or visit www.bankruptcyexpertscairns.com.au for more information.