Four Types Of People Who Have Money Issues
When it comes to money, a person’s personality takes on a significant role in their financial decision-making. Everyone is unique, and that’s what makes us human, so it really shouldn’t come as a surprise that there are various personality types that are more likely to have money issues than others. It’s tough to modify your personality traits, especially when you’re older, so simply having an understanding of how your personality affects your financial decisions may help you make better financial decisions in the future. It’s definitely an important topic to understand, as money troubles can compound rather quickly and you can find yourself in hot water within the blink of an eye. This article will look at 4 different types of personalities whom are more likely to have money complications, coupled with some recommended ways to improve your financial situation if you fall into one of these personality groups.
- The Risk-Takers
Economically speaking, the higher the risk the higher the reward, but the chances of experiencing high risk success is notably low. Some people are born as risk-takers, others develop this personality trait in time; but in many cases, it’s the thrill of the risk that these types of folks enjoy. Statistically, the odds of financial success for the risk-takers are low, so it is essential for these types of individuals to diversify their risks to increase their odds 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 noticeably improve their financial future.
- The Spenders
Regardless if they’re wealthy or not, the spenders are the types of people who live life to the fullest without thinking about the financial effects 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 incur huge amounts of debt which can take a very long time to repay. As a result, their chances of financial success are significantly inhibited. Saving money is the key to financial success, so to avoid overspending, the spenders should consider putting together a budget to keep track of their spending habits and at the same time, inspect 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
The ignorants are frequently the type of folks that are financially uneducated and have no interest in improving their monetary skills. The ignorants may have a similar way of thinking 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 imperative that people 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 try to think about how spending their money now will have an effect 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 stark contrast to the risk-takers, the pessimists tend to pass up on opportunities to make money simply because they’re afraid they won’t succeed. When it relates to 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 restrict their likelihood of financial growth and success. An ideal 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 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 troubles. 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 mean that you can’t alter some of them over time to be more financially responsible. If you need any help with your finances, or you’ve found yourself facing a mountain of debt caused by overspending, reach out to Bankruptcy Experts Sydney on 1300 795 575 for assistance, or visit http://www.bankruptcyexpertssydney.com.au for additional information.