|July 18, 2017||Comments Closed|
When it concerns money, a person’s personality represents a notable role in their financial decision-making. Everybody is unique, and that’s what makes us human, so it really shouldn’t come as a revelation that there are particular personality types that are more likely to have money concerns than others. It’s hard to change your personality traits, especially when you’re older, so simply comprehending how your personality has an effect on your financial decisions may help you make better financial decisions down the road. It’s definitely an important topic to understand, as money issues can compound rather 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 issues, as well as some recommended ways to improve your financial situation if you fall into one of these personality groups.
1. 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 with time; but most of the time, it’s the thrill of the risk that these types of people relish. Statistically, the chances of financial success for the risk-takers are low, so it is vital for these types of folks 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 combination of high-risk and low-risk investments will drastically improve their financial future.
2. The Spenders
No matter if they’re wealthy or not, the spenders are the types of people who live life to the fullest without taking into account 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 more likely to acquire substantial amounts of debt which can take a long period of time to repay. Consequently, their likelihood of financial success are greatly inhibited. Saving money is the key to financial success, so to prevent overspending, the spenders should consider setting up a budget to observe their spending habits and additionally, investigate the triggers that cause them to spend their money in the first place. Addressing the triggers that cause these types of people to overspend is the key to resolving the problem.
3. The Ignorants
The ignorants are usually the type of people that are financially uneducated and have no interest in improving their fiscal skills. The ignorants may have a similar way of thinking 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 essential 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 blogs and articles. Who knows, they might actually enjoy it?
4. The Pessimists
In bleak contrast to the risk-takers, the pessimists often tend to pass up on opportunities to make money purely because they fear they won’t succeed. When it concerns large investments like purchasing a house or investing in the stock market, 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 inhibit their opportunity of financial growth and success. An effective 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 undoubtedly many other types of personalities than the ones specified above, however these are probably the most common personality traits that hinders financial growth and can lead to money troubles. 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 mean that you can’t reshape some of them with 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, get in touch with Bankruptcy Experts Bendigo on 1300 795 575 for assistance, or visit www.bankruptcyexpertsbendigo.com.au for more details.