|July 17, 2017||0|
When it concerns money, a person’s personality takes on a considerable role in their financial decision-making. Each person is unique, and that’s what makes us human, so it really shouldn’t come as a shock that there are particular personality types that are more likely to have money issues than others. It’s hard to modify your personality traits, especially when you’re older, so simply knowing how your personality has an effect on your financial decisions can help you make better financial decisions in the future. It’s unquestionably an important topic to understand, as money troubles can magnify rather quickly and you can end up in hot water within the blink of an eye. This post will examine four different personality types whom are more likely to have money complications, along with some recommended ways to improve your financial situation if you fall under one of these personality categories.
Financially speaking, the higher the risk the higher the reward, but the chances of experiencing high risk success is substantially low. Some folks are born as risk-takers, others develop this personality trait with time; but in many cases, it’s the thrill of the risk that these types of individuals relish. Statistically, the odds of financial success for the risk-takers are low, so it is essential for these types of people to diversify their risks to increase their odds of financial success. These individuals can make high-risk investments, but they can’t put all their eggs in one basket. A mixture of high-risk and low-risk investments will significantly improve their financial future.
Regardless of whether they’re wealthy or not, the spenders are the types of individuals who live life to the fullest without taking into account the financial effects of their decision-making. Whether they’re spending money to have a good time, look good, or to simply please others, the spenders are likely to incur enormous amounts of debt which can take a very long time to repay. Due to this fact, their likelihood of financial success are considerably hindered. Saving money is the key to financial success, so to prevent overspending, the spenders should consider developing 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 resolving the issue.
The ignorants are commonly 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 because of this, spend all of their money and end up in debt. It’s critical that folks 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 impact their future. Take an interest in learning how to budget by reading online blogs and articles. Who knows, they might actually enjoy it?
In bleak contrast to the risk-takers, the pessimists typically pass up on opportunities to make money simply because they’re afraid 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 concern with the pessimists is that by avoiding all risks, they will feel more protected, and this will restrict their likelihood of financial growth and success. An effective 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 naturally many other personality types than the ones mentioned above, however these are likely the most common personality traits that impairs 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 particular personality traits doesn’t mean that you can’t change some of them over time to be more financially responsible. If you need any help with your finances, or you’ve found yourself facing a mountain of debt caused by overspending, reach out to Fresh Start Solutions Canberra on 1300 818 575 for assistance, or visit https://freshstartsolutions.com.au/bankruptcy-canberra for more details.