July 17, 20170

4 Types Of People Who Have Money Problems

Posted by:Charles Bosse onJuly 17, 2017

When it concerns money, a person’s personality plays an important 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 revelation that there are particular types of personalities that are more likely to have money concerns than others. It’s difficult to adjust your personality traits, especially when you’re older, so simply recognising how your personality influences your financial decisions can help you make better financial decisions in the future. It’s undeniably an important topic to understand, as money problems can exacerbate rapidly and you can find yourself in deep water within the blink of an eye. This article will look at 4 different personality types whom are more likely to have money problems, coupled with some suggested ways to improve your financial situation if you fall under one of these personality types.

  1. The Risk-Takers

Financially speaking, the higher the risk the higher the reward, but the likelihood of experiencing high risk success is notably low. Some people are born as risk-takers, others develop this personality trait in time; but most of the time, it’s the thrill of the risk that these types of individuals revel in. Statistically, the chances of financial success for the risk-takers are low, so it is vital for these types of people to diversify their risks to increase their chances of financial success. These individuals 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 noticeably improve their financial future.

  1. The Spenders

No matter if they’re wealthy or not, the spenders are the types of individuals who live life to the fullest without contemplating the financial repercussions of their decision-making. Whether they’re spending money to have a great time, look good, or to simply please others, the spenders are likely to acquire enormous amounts of debt which can take a long time to repay. Due to this fact, their chances of financial success are substantially impaired. Saving money is the key to financial success, so to prevent overspending, the spenders need to consider putting together a budget to keep track of their spending habits and additionally, inspect the triggers that cause them to spend their money to begin with. Addressing the triggers that cause these types of people to overspend is the key to resolving the problem.

  1. The Ignorants

The ignorants are usually the type of people 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 consequently, spend all of their money and end up in debt. It’s crucial that individuals 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 try to think about how spending their money now will impact their future. Take an interest in learning how to budget by reading online weblogs and articles. Who knows, they might actually enjoy it?

  1. The Pessimists

In bleak contrast to the risk-takers, the pessimists typically pass up on opportunities to make money simply because they fear they won’t succeed. When it comes down to 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 issue with the pessimists is that by avoiding all risks, they will feel more protected, and this will inhibit their chances of financial growth and success. An ideal 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 personality types than the ones specified above, however these are likely the most common personality traits that impedes financial growth and can lead to money problems. 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 imply that you can’t alter some of them over time to be more financially responsible. If you need any support with your finances, or you’ve found yourself facing a mountain of debt as a result of overspending, call Fresh Start Solutions Adelaide on 1300 818 575 for assistance, or visit https://freshstartsolutions.com.au/bankruptcy-adelaide for additional information.

 

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