4 Types Of People Who Have Money Problems

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When it concerns money, a person’s personality represents a notable 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 shock that there are specific types of personalities that are more likely to have money concerns than others. It’s tough to modify your personality traits, especially when you’re older, so simply knowing how your personality impacts your financial decisions may help you make better financial decisions in the future. It’s certainly an important topic to understand, as money challenges can intensify rapidly and you can end up in hot water within the blink of an eye. This blog will have a look at 4 different personality types whom are more likely to have money difficulties, together with some recommended ways to improve your financial situation if you fall under one of these personality classifications.

  1. The Risk-Takers

Economically speaking, the higher the risk the higher the reward, but the probability of experiencing high risk success is significantly low. Some folks are born as risk-takers, others develop this personality trait gradually; 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 is essential for these types of individuals 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.

  1. The Spenders

Regardless of whether they’re wealthy or not, the spenders are the types of people who live life to the fullest without considering the financial repercussions 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 huge amounts of debt which can take a very long time to repay. For this reason, their opportunity of financial success are considerably inhibited. Saving money is the key to financial success, so to avoid overspending, the spenders need to consider developing a budget to keep track of their spending habits and additionally, explore the triggers that cause them to spend their money in the first place. Facing the triggers that cause these types of people to overspend is the key to fixing the problem.

  1. The Ignorants

The ignorants are commonly the type of individuals that are financially uneducated and have no interest in improving their financial skills. The ignorants may have a similar mindset 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 people with this personality trait learn the value of money and how it can be used to provide a better future. Instead of thinking about now, they should try to think about how spending their money now will affect their future. Take an interest in learning how to budget by reading online weblogs and articles. Who knows, they might actually enjoy it?

  1. The Pessimists

In stark contrast to the risk-takers, the pessimists generally pass up on opportunities to make money purely because they’re afraid they won’t succeed. When it comes 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 trouble with the pessimists is that by avoiding all risks, they will feel more protected, and this will restrict their opportunity 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 types of personalities than the ones discussed above, however these are likely the most common personality traits that inhibits financial growth and can result in money problems. 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 particular personality traits doesn’t indicate that you can’t change some of them with 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, speak to Bankruptcy Experts Geelong on 1300 795 575 for assistance, or visit http://www.bankruptcyexpertsgeelong.com.au for more details.

 

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