Australia's #1 Choice for Bankruptcy Solutions!      Call Us: 1300 795 575

Archive: Posts

4 Types Of People Who Have Money Issues

4 Types Of People Who Have Money Issues

When it concerns money, a person’s personality plays a notable role in their financial decision-making. Everybody is unique, and that’s what makes us human, so it really shouldn’t come as a surprise that there are specific types of personalities that are more likely to have money complications than others. It’s difficult to modify your personality traits, especially when you’re older, so simply comprehending how your personality has an effect on your financial decisions can help you make better financial decisions down the road. It’s certainly an important topic to understand, as money troubles can intensify rapidly and you can find yourself in deep water within the blink of an eye. This article will explore four different personality types whom are more likely to have money complications, as well as some recommended ways to improve your financial situation if you fall under one of these personality types.

  1. The Risk-Takers

Economically speaking, the higher the risk the higher the reward, but the likelihood of experiencing high risk success is notably 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 folks take pleasure in. Statistically, the likelihood of financial success for the risk-takers are low, so it’s important for these types of folks to diversify their risks to increase their chances 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 substantially improve their financial future.

  1. The Spenders

Regardless of whether they’re wealthy or not, the spenders are the types of folks who live life to the fullest without considering the financial repercussions of their decision-making. Whether they’re spending money to enjoy themselves, look good, or to simply please others, the spenders are likely to acquire considerable amounts of debt which can take a long time to repay. Subsequently, their opportunity of financial success are noticeably impeded. Saving money is the key to financial success, so to prevent overspending, the spenders should consider creating a budget to monitor their spending habits and at the same time, examine the triggers that cause them to spend their money to begin with. Confronting the triggers that cause these types of people to overspend is the key to resolving the issue.

  1. The Ignorants

The ignorants are commonly 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 as a result, spend all of their money and wind up in debt. It’s imperative that folks 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 aim 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 weblogs and articles. Who knows, they might actually enjoy it?

  1. The Pessimists

In bleak contrast to the risk-takers, the pessimists have a tendency pass up on opportunities to make money simply because they fear 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 challenge with the pessimists is that by avoiding all risks, they will feel more safe, and this will impede 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 make certain they have a well-balanced portfolio that is low-risk and offers an opportunity for a good return.

There are obviously many other types of personalities than the ones discussed above, however these are perhaps the most common personality traits that inhibits financial growth and can result in money difficulties. In today’s world, money is without question remarkably 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 indicate that you can’t reshape 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, call Bankruptcy Experts Canberra on 1300 795 575 for assistance, or visit http://www.bankruptcyexpertscanberra.com.au for more details.