|July 17, 2017||0|
When it concerns money, a person’s personality takes on a notable 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 problems than others. It’s difficult to change your personality traits, in particular 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 difficulties can intensify rather quickly and you can end up in deep water within the blink of an eye. This article will look at 4 different types of personalities whom are more likely to have money issues, in addition to some suggested ways to improve your financial situation if you fall under one of these personality classifications.
Financially speaking, the higher the risk the higher the reward, but the chances of experiencing high risk success is substantially low. Some people are born as risk-takers, others develop this personality trait gradually; but for the most parts, it’s the thrill of the risk that these types of folks relish. Statistically, the probability of financial success for the risk-takers are low, so it is crucial for these types of folks 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 combination of high-risk and low-risk investments will dramatically improve their financial future.
Regardless of whether they’re wealthy or not, the spenders are the types of people who live life to the fullest without contemplating the financial consequences of their decision-making. Whether they’re spending money to have fun, look good, or to simply please others, the spenders are likely to incur huge amounts of debt which can take a long time to repay. For this reason, their chances 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, examine the triggers that cause them to spend their money to begin with. Dealing with the triggers that cause these types of people to overspend is the key to fixing the problem.
The ignorants are commonly the type of people that are financially uneducated and have no interest in improving their financial skills. The ignorants may have a similar reasoning 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 important 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 aim to think about how spending their money now will have a bearing on their future. Take an interest in learning how to budget by reading online weblogs 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 purely because they fear they won’t succeed. When it involves 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 challenge with the pessimists is that by avoiding all risks, they will feel more safe, and this will inhibit their likelihood of financial growth and success. A good solution for the pessimists is to diversify their investments in a wide-range of markets to make sure 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 mentioned above, however these are perhaps the most common personality traits that restricts financial growth and can result in money problems. 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 signify that you can’t alter some of them over time to be more financially responsible. If you need any assistance with your finances, or you’ve ended up facing a mountain of debt caused by overspending, contact Fresh Start Solutions Darwin on 1300 818 575 for assistance, or visit https://freshstartsolutions.com.au/bankruptcy-darwin for additional information.