|July 17, 2017||0|
When it comes down to money, a person’s personality takes on a meaningful 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 surprise that there are some types of personalities that are more likely to have money concerns than others. It’s difficult to change your personality traits, especially when you’re older, so simply knowing how your personality influences your financial decisions may help you make better financial decisions down the road. It’s most certainly an important topic to understand, as money issues can exacerbate quickly and you can find yourself in deep water within the blink of an eye. This article will have a look at four different personality types whom are more likely to have money difficulties, as well as some recommended ways to improve your financial situation if you fall into one of these personality types.
Financially speaking, the higher the risk the higher the reward, but the possibility of experiencing high risk success is considerably low. Some people are born as risk-takers, others develop this personality trait with time; but most of the time, it’s the thrill of the risk that these types of folks enjoy. Statistically, the chances of financial success for the risk-takers are low, so it’s important 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 combination of high-risk and low-risk investments will drastically improve their financial future.
No matter if they’re wealthy or not, the spenders are the types of people who live life to the fullest without taking into account the financial repercussions of their decision-making. Whether they’re spending money to enjoy themselves, look good, or to simply please others, the spenders are more likely to acquire substantial amounts of debt which can take a very long time to repay. Consequently, their opportunity of financial success are considerably inhibited. 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, examine the triggers that cause them to spend their money in the first place. Confronting the triggers that cause these types of people to overspend is the key to solving the problem.
The ignorants are normally the type of folks 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 a result, spend all of their money and wind up 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. 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 blogs and articles. Who knows, they might actually enjoy it?
In bleak contrast to the risk-takers, the pessimists have a tendency pass up on opportunities to make money purely because they fear they won’t succeed. When it concerns large investments like purchasing a house or investing in the stock exchange, 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 safe, and this will impair their opportunity of financial growth and success. An effective solution for the pessimists is to diversify their investments in a wide-range of markets to make sure that they have a well-balanced portfolio that is low-risk and offers an opportunity for a good return.
There are naturally 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 cause money concerns. 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 modify 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 on 1300 818 575 for assistance, or visit https://freshstartsolutions.com.au for more details.