|July 24, 2017||Comments Closed|
When it involves money, a person’s personality represents a significant 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 issues than others. It’s tough to alter your personality traits, in particular when you’re older, so simply having an understanding of how your personality affects your financial decisions may help you make better financial decisions down the road. It’s without a doubt an important topic to understand, as money problems can exacerbate rapidly and you can end up in deep water within the blink of an eye. This article will look at 4 different types of personalities whom are more likely to have money challenges, in conjunction with some recommended ways to improve your financial situation if you fall into one of these personality classifications.
Financially speaking, the higher the risk the higher the reward, but the possibility of experiencing high risk success is significantly low. Some individuals are born as risk-takers, others develop this personality trait with time; but in most cases, it’s the thrill of the risk that these types of individuals take pleasure in. Statistically, the odds of financial success for the risk-takers are low, so it’s important for these types of folks to diversify their risks to increase their chances of financial success. These folks can make high-risk investments, but they can’t put all their eggs in one basket. A combination of high-risk and low-risk investments will considerably improve their financial future.
2. The Spenders
No matter 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 repercussions of their decision-making. Whether they’re spending money to enjoy themselves, look good, or to simply please others, the spenders are likely to acquire huge amounts of debt which can take a long time to repay. For this reason, their chances of financial success are significantly restricted. Saving money is the key to financial success, so to prevent overspending, the spenders should consider creating a budget to track their spending habits and additionally, review 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 resolving the issue.
3. 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 rationality 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 vital that people with this personality trait learn the value of money and how it can be used to provide a better future. Rather than thinking about now, they should attempt to think about how spending their money now will have an effect 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?
4. The Pessimists
In stark contrast to the risk-takers, the pessimists have a tendency pass up on opportunities to make money simply because they’re afraid they won’t succeed. When it comes to large investments like buying a house or investing in the stock exchange, the pessimist will avoid taking any risks for fear of losing their hard-earned money. The issue with the pessimists is that by avoiding all risks, they will feel more safe, 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 certain 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 perhaps the most common personality traits that impairs financial growth and can cause 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 specific personality traits doesn’t signify that you can’t reshape some of them over time to be more financially responsible. If you need any assistance with your finances, or you’ve ended up facing a mountain of debt caused by overspending, contact Bankruptcy Experts Mount Isa on 1300 795 575 for assistance, or visit http://www.bankruptcyexpertsmountisa.com.au for more details.