|July 17, 2017||0|
When it concerns money, a person’s personality serves an important role in their financial decision-making. Everyone is unique, and that’s what makes us human, so it really shouldn’t come as a shock that there are some types of personalities that are more likely to have money issues than others. It’s tough to adjust your personality traits, especially when you’re older, so simply realising how your personality influences your financial decisions may help you make better financial decisions in the future. It’s definitely an important topic to understand, as money challenges can compound rather quickly and you can find yourself in hot water within the blink of an eye. This article will examine four different personality types 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 groups.
Financially speaking, the higher the risk the higher the reward, but the likelihood of experiencing high risk success is significantly low. Some people are born as risk-takers, others develop this personality trait with time; but the majority of the time, it’s the thrill of the risk that these types of folks take pleasure in. Statistically, the likelihood 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 chances 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.
Regardless 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 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 incur large amounts of debt which can take a long time to repay. Consequently, their opportunity of financial success are greatly hindered. Saving money is the key to financial success, so to prevent overspending, the spenders should consider setting up a budget to keep track of their spending habits and at the same time, study 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 problem.
The ignorants are typically the type of individuals that are financially uneducated and have no interest in improving their monetary skills. The ignorants may have a similar mentality to the risk-takers in that they want to ‘live life to the fullest’ and as such, spend all of their money and find themselves in debt. It’s important 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 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?
In stark contrast to the risk-takers, the pessimists often pass up on opportunities to make money simply because they fear they won’t succeed. When it concerns large investments like buying a house or investing in the stock market, the pessimist will avoid taking any risks for fear of losing their hard-earned money. The problem with the pessimists is that by avoiding all risks, they will feel more protected, and this will impede their opportunity 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 clearly many other types of personalities than the ones detailed above, however these are perhaps the most common personality traits that impairs financial growth and can result in money concerns. 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 certain personality traits doesn’t suggest that you can’t reshape some of them with time to be more financially responsible. If you need any help with your finances, or you’ve found yourself facing a mountain of debt as a result of overspending, phone Fresh Start Solutions Brisbane on 1300 818 575 for assistance, or visit https://freshstartsolutions.com.au/bankruptcy-brisbane for additional information.