When it involves money, a person’s personality represents a meaningful role in their financial decision-making. Everyone is unique, and that’s what makes us human, so it really shouldn’t come as a surprise that there are some types of personalities that are more likely to have money troubles than others. It’s difficult to adjust your personality traits, specifically when you’re older, so simply recognising how your personality impacts your financial decisions can help you make better financial decisions in the future. It’s undoubtedly an important topic to understand, as money difficulties can exacerbate rather quickly and you can end up in hot water within the blink of an eye. This article will look into four different personality types whom are more likely to have money troubles, along with some recommended ways to improve your financial situation if you fall into one of these personality classifications.
- The Risk-Takers
Financially speaking, the higher the risk the higher the reward, but the probability of experiencing high risk success is considerably low. Some individuals are born as risk-takers, others develop this personality trait over time; but for the most parts, 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 very important for these types of folks 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 substantially improve their financial future.
- The Spenders
Regardless if they’re wealthy or not, the spenders are the types of individuals who live life to the fullest without taking into account the financial consequences of their decision-making. Whether they’re spending money to have fun, look good, or to simply please others, the spenders are likely to accumulate significant amounts of debt which can take a very long time to repay. Subsequently, their opportunity of financial success are significantly restricted. Saving money is the key to financial success, so to avoid overspending, the spenders should consider developing a budget to observe their spending habits and at the same time, explore 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 problem.
- The Ignorants
The ignorants are frequently the type of individuals that are financially uneducated and have no interest in improving their financial skills. The ignorants may have a similar rationality to the risk-takers in that they want to ‘live life to the fullest’ and as a result, 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. Instead of 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 blogs and articles. Who knows, they might actually enjoy it?
- The Pessimists
In bleak contrast to the risk-takers, the pessimists generally pass up on opportunities to make money simply because they fear 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 concern with the pessimists is that by avoiding all risks, they will feel more protected, and this will hinder 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 undoubtedly many other personality types than the ones specified above, however these are likely the most common personality traits that impairs financial growth and can lead to money troubles. 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 specific personality traits doesn’t imply 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 as a result of overspending, contact Bankruptcy Experts Shepparton on 1300 795 575 for assistance, or visit http://www.bankruptcyexpertsshepparton.com.au for more information.