Money

How Your Personality Affects How You Spend: The Risk Taker

By Ed Reynolds | Tuesday 13th February, 2018

Have you bought some cryptocurrency recently? Do you idealise Leonardo DiCaprio in Wolf of Wall street? Or maybe you have an entrepreneurial spirit? If any of this rings true, you might be what’s known as a risk taker. No, not-jumping-out-of-a plane sort of risk taker, but a financial one.

Often perceived as a more aggressive personality trait, those with this characteristic are usually (but not always) identified by two things; their profession or their habits. They tend to work in investment, stocks or a similar type of industry or they aspire to own their own business. And why? Mainly because they just really want to earn shit loads of money. They don’t tend to carry cash because their minds are pretty focused on credit (getting more of it and increasing their credit score).

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Many people (wrongly) associate financial risk takers with addiction, specifically gambling. I mean yeah, this is common, but it’s not the case for everyone.

There are two types of financial risk taker; the more successful, being the 'realistic' risk taker. The reason behind their success is that they thoroughly research before they make decisions to make sure there are no nasty surprises (or massive fuck ups). They assess the consequences before they take the plunge to see if the risk is really worth it. If this is you, then nice work- you might have got the financial market sussed.

But if not, then you could be an idealistic risk taker. And unfortunately, these people tend to experience more financial problems. Why? Well, they take all the risks without any of the thought. They see the reward without weighing it up with the potentially negative outcome and that’s because they don’t really believe they will run into any trouble.

Britney

The thing is though, whether you are idealistic or realistic, you need at least a little risk if you want to see a substantial increase in your money. Whether that's investing in a company you really believe in or taking a risk on yourself. The best thing to do, is to also have money saved up on the side to bail you out if your risk doesn’t pay off.

If you need some tips about how to set some of your money aside then check them out here. Or you can download Loot and let the app do it for you!

Not a risk taker? Maybe you're a...
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Photo credits: Concrete Native
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