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When it relates to money, a person’s personality represents a major 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 shock that there are some personality types that are more likely to have money problems than others. It’s tough to alter your personality traits, especially when you’re older, so simply recognising how your personality has an effect on your financial decisions can help you make better financial decisions down the road. It’s undoubtedly an important topic to understand, as money difficulties can compound rather quickly and you can end up in deep water within the blink of an eye. This article will look at 4 different personality types whom are more likely to have money difficulties, along with some recommended ways to improve your financial situation if you fall into one of these personality categories.
Economically speaking, the higher the risk the higher the reward, but the chances of experiencing high risk success is notably low. Some folks 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 individuals take pleasure in. Statistically, the likelihood 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 likelihood of financial success. These individuals 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 greatly improve their financial future.
- The Spenders
Regardless if they’re wealthy or not, the spenders are the types of folks who live life to the fullest without thinking of the financial effects 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 accumulate large amounts of debt which can take a very long time to repay. Consequently, their chances of financial success are substantially hindered. Saving money is the key to financial success, so to avoid overspending, the spenders need to consider developing a budget to observe their spending habits and at the same time, examine the triggers that cause them to spend their money in the first place. Dealing with the triggers that cause these types of people to overspend is the key to fixing the issue.
- The Ignorants
The ignorants are generally the type of individuals that are financially uneducated and have no interest in improving their financial skills. The ignorants may have a similar rationality to the risk-takers in that they want to ‘live life to the fullest’ and consequently, spend all of their money and wind 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 try 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 blogs and articles. Who knows, they might actually enjoy it?
- The Pessimists
In bleak contrast to the risk-takers, the pessimists often tend to pass up on opportunities to make money simply because they’re afraid they won’t succeed. When it comes down 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 issue with the pessimists is that by avoiding all risks, they will feel more secure, and this will hinder their chances of financial growth and success. An effective solution for the pessimists is to diversify their investments in a wide-range of markets to make certain 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 detailed above, however these are likely the most common personality traits that impedes financial growth and can cause 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 certain personality traits doesn’t suggest that you can’t alter some of them in time to be more financially responsible. If you need any help with your finances, or you’ve found yourself facing a mountain of debt as a result of overspending, reach out to Bankruptcy Experts Wagga Wagga on 1300 795 575 for assistance, or visit http://www.bankruptcyexpertsWagga Wagga .com.au for more information.