|July 17, 2017||0|
When it concerns money, a person’s personality plays a considerable role in their financial decision-making. Everybody is unique, and that’s what makes us human, so it really shouldn’t come as a shock that there are various personality types that are more likely to have money problems than others. It’s difficult to adjust your personality traits, particularly when you’re older, so simply recognising how your personality affects 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 magnify quickly and you can find yourself in deep water within the blink of an eye. This blog will investigate 4 different types of personalities whom are more likely to have money issues, together with some recommended ways to improve your financial situation if you fall under one of these personality types.
Financially speaking, the higher the risk the higher the reward, but the chances of experiencing high risk success is significantly low. Some individuals are born as risk-takers, others develop this personality trait in time; but for the most parts, it’s the thrill of the risk that these types of individuals enjoy. Statistically, the probability of financial success for the risk-takers are low, so it is vital for these types of folks to diversify their risks to increase their likelihood 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 substantially improve their financial future.
No matter if they’re wealthy or not, the spenders are the types of individuals who live life to the fullest without thinking of 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 more likely to acquire considerable amounts of debt which can take a very long time to repay. For this reason, their likelihood of financial success are noticeably inhibited. Saving money is the key to financial success, so to prevent overspending, the spenders need to consider forming a budget to track their spending habits and additionally, analyse 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 fixing the problem.
The ignorants are often 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 as a result, spend all of their money and wind up in debt. It’s vital that folks 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 try to think about how spending their money now will impact 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 tend to pass up on opportunities to make money purely because they’re afraid they won’t succeed. When it comes to large investments like buying a house or investing in the stock exchange, 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 secure, and this will hinder 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 ensure they have a well-balanced portfolio that is low-risk and offers an opportunity for a good return.
There are obviously many other personality types than the ones specified above, however these are likely the most common personality traits that restricts financial growth and can lead to money difficulties. 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 suggest that you can’t reshape some of them with time to be more financially responsible. If you need any assistance with your finances, or you’ve ended up facing a mountain of debt due to overspending, talk to Fresh Start Solutions Sunshine Coast on 1300 818 575 for assistance, or visit https://freshstartsolutions.com.au/bankruptcy-sunshinecoast for more information.