4 Types Of People Who Have Money Problems
When it concerns money, a person’s personality serves an important role in their financial decision-making. Each person is unique, and that’s what makes us human, so it really shouldn’t come as a surprise that there are some personality types that are more likely to have money problems than others. It’s difficult to reshape your personality traits, particularly when you’re older, so simply realising how your personality has an effect on your financial decisions can help you make better financial decisions down the road. It’s undeniably an important topic to understand, as money issues can exacerbate rather quickly and you can find yourself in deep water within the blink of an eye. This blog will look into four different types of personalities whom are more likely to have money concerns, alongside some recommended ways to improve your financial situation if you fall under one of these personality types.
- The Risk-Takers
Fiscally speaking, the higher the risk the higher the reward, but the odds of experiencing high risk success is substantially low. Some folks are born as risk-takers, others develop this personality trait over time; but the majority of the time, it’s the thrill of the risk that these types of individuals relish. Statistically, the chances 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 odds 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 significantly improve their financial future.
- The Spenders
Whether they’re wealthy or not, the spenders are the types of people who live life to the fullest without taking into consideration 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 incur considerable amounts of debt which can take a long period of time to repay. For this reason, their chances of financial success are significantly impeded. Saving money is the key to financial success, so to avoid overspending, the spenders should consider developing a budget to keep track of their spending habits and at the same time, study 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 usually the type of folks that are financially uneducated and have no interest in improving their fiscal skills. The ignorants may have a similar mentality to the risk-takers in that they want to ‘live life to the fullest’ and as a result, spend all of their money and end up in debt. It’s crucial 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 an effect on their future. Take an interest in learning how to budget by reading online blog posts and articles. Who knows, they might actually enjoy it?
- The Pessimists
In stark contrast to the risk-takers, the pessimists have the tendency to pass up on opportunities to make money purely because they’re afraid they won’t succeed. When it comes down to large investments like buying a house or investing in the stock market, the pessimist will avoid taking any risks for fear of losing their hard-earned money. The problem with the pessimists is that by avoiding all risks, they will feel more safe, and this will inhibit their chances 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 naturally many other types of personalities than the ones mentioned above, however these are perhaps the most common personality traits that impedes financial growth and can cause money difficulties. In today’s world, money is without question extremely important not only for survival, but also to be able to enjoy the only life we have. Just because you have particular personality traits doesn’t signify that you can’t alter some of them in time to be more financially responsible. If you need any support with your finances, or you’ve found yourself facing a mountain of debt as a result of overspending, talk with Bankruptcy Experts Tamworth on 1300 795 575 for assistance, or visit www.bankruptcyexpertstamworth.com.au for more information.