|July 17, 2017||0|
When it comes down to money, a person’s personality plays an important role in their financial decision-making. Everybody is unique, and that’s what makes us human, so it really shouldn’t come as a revelation that there are various types of personalities that are more likely to have money concerns than others. It’s hard to alter your personality traits, specifically when you’re older, so simply comprehending how your personality affects your financial decisions can help you make better financial decisions in the future. It’s without a doubt an important topic to understand, as money complications can magnify rapidly and you can end up in deep water within the blink of an eye. This article will have a look at four different types of personalities whom are more likely to have money complications, in addition to some suggested 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 possibility of experiencing high risk success is substantially low. Some people are born as risk-takers, others develop this personality trait with time; but for the most parts, it’s the thrill of the risk that these types of people take pleasure in. Statistically, the chances of financial success for the risk-takers are low, so it is crucial 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 considerably improve their financial future.
Regardless if they’re wealthy or not, the spenders are the types of individuals who live life to the fullest without considering the financial implications 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 very long time to repay. For this reason, their chances of financial success are significantly hindered. Saving money is the key to financial success, so to prevent overspending, the spenders need to consider setting up a budget to monitor their spending habits and at the same time, inspect 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 solving the problem.
The ignorants are typically the type of folks that are financially uneducated and have no interest in improving their fiscal 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 important that people with this personality trait learn the value of money and how it can be used to provide a better future. As opposed to thinking about now, they should aim to think about how spending their money now will affect their future. Take an interest in learning how to budget by reading online weblogs and articles. Who knows, they might actually enjoy it?
In stark contrast to the risk-takers, the pessimists have a tendency pass up on opportunities to make money purely because they’re afraid 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 concern 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. 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 certainly many other types of personalities than the ones discussed above, however these are probably the most common personality traits that impairs financial growth and can lead to money problems. In today’s world, money is without question incredibly 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 mean that you can’t reshape some of them in time to be more financially responsible. If you need any assistance with your finances, or you’ve found yourself facing a mountain of debt as a result of overspending, get in touch with Fresh Start Solutions Gold Coast on 1300 818 575 for assistance, or visit https://freshstartsolutions.com.au/bankruptcy-goldcoast for more information.