|July 17, 2017||0|
When it involves money, a person’s personality plays a significant role in their financial decision-making. Every person is unique, and that’s what makes us human, so it really shouldn’t come as a shock that there are some personality types that are more likely to have money troubles than others. It’s hard to reshape your personality traits, in particular when you’re older, so simply understanding how your personality affects your financial decisions may help you make better financial decisions down the road. It’s undoubtedly an important topic to understand, as money complications can intensify rather quickly and you can find yourself in hot water within the blink of an eye. This blog will look into four different types of personalities whom are more likely to have money challenges, together with some suggested ways to improve your financial situation if you fall under one of these personality groups.
Financially speaking, the higher the risk the higher the reward, but the possibility of experiencing high risk success is substantially low. Some folks 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 individuals revel in. Statistically, the probability of financial success for the risk-takers are low, so it is essential for these types of individuals to diversify their risks to increase their probability of financial success. These people can make high-risk investments, but they can’t put all their eggs in one basket. A blend of high-risk and low-risk investments will substantially improve their financial future.
Whether they’re wealthy or not, the spenders are the types of individuals who live life to the fullest without thinking about the financial effects of their decision-making. Whether they’re spending money to have a great time, 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. As a result, their likelihood of financial success are substantially impeded. Saving money is the key to financial success, so to avoid overspending, the spenders should consider forming a budget to observe their spending habits and additionally, explore 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 fixing the issue.
The ignorants are usually the type of individuals that are financially uneducated and have no interest in improving their fiscal skills. The ignorants may have a similar frame of mind to the risk-takers in that they want to ‘live life to the fullest’ and as such, spend all of their money and end up in debt. It’s vital that individuals 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 try 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?
In bleak contrast to the risk-takers, the pessimists have the tendency to pass up on opportunities to make money simply because they fear they won’t succeed. When it comes to 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 concern 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 ensure 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 likely the most common personality traits that impedes financial growth and can result in money issues. In today’s world, money is without question exceptionally 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 modify some of them with time to be more financially responsible. If you need any support with your finances, or you’ve found yourself facing a mountain of debt due to overspending, talk with Fresh Start Solutions Sydney on 1300 818 575 for assistance, or visit http://freshstartsolutions.com.au/bankruptcy-sydney for additional information.