4 Types Of People Who Have Money Problems
When it comes down to money, a person’s personality takes on a considerable 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 revelation that there are certain personality types that are more likely to have money troubles than others. It’s tough to adjust your personality traits, particularly when you’re older, so simply having an understanding of how your personality affects your financial decisions can help you make better financial decisions down the road. It’s definitely 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 article will explore four different types of personalities whom are more likely to have money problems, alongside some suggested ways to improve your financial situation if you fall under one of these personality types.
- The Risk-Takers
Financially speaking, the higher the risk the higher the reward, but the likelihood of experiencing high risk success is significantly low. Some individuals are born as risk-takers, others develop this personality trait in time; but the majority of the time, it’s the thrill of the risk that these types of individuals take pleasure in. Statistically, the probability 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 likelihood of financial success. These folks can make high-risk investments, but they can’t put all their eggs in one basket. A mixture of high-risk and low-risk investments will substantially improve their financial future.
2. The Spenders
Regardless of whether they’re wealthy or not, the spenders are the types of individuals who live life to the fullest without contemplating the financial implications of their decision-making. Whether they’re spending money to have a good time, look good, or to simply please others, the spenders are likely to incur significant amounts of debt which can take a very long time to repay. Consequently, their opportunity of financial success are noticeably restricted. Saving money is the key to financial success, so to prevent overspending, the spenders need to consider putting together a budget to track their spending habits and at the same time, investigate 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.
3. The Ignorants
The ignorants are generally 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 such, spend all of their money and wind up in debt. It’s imperative 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 attempt 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?
4. The Pessimists
In bleak contrast to the risk-takers, the pessimists typically 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 concern with the pessimists is that by avoiding all risks, they will feel more safe, and this will restrict their chances of financial growth and success. A good 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 clearly many other types of personalities than the ones mentioned above, however these are perhaps the most common personality traits that hinders financial growth and can result in money problems. 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 specific personality traits doesn’t imply that you can’t alter some of them in 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, speak with Bankruptcy Experts Tablelands on 1300 795 575 for assistance, or visit http://www.bankruptcyexpertstablelands.com.au for additional information.