Did you know your personality can affect the way you handle your finances? Read on to know more.
There are two types of people—ones who love to talk (extroverts) and others who prefer to listen (introverts). More often than not you’ll see an extrovert confidently walking up to a group of complete strangers and striking a conversation with them about anything and everything. Whether it’s a discussion about time travel or anything related to the latest Credit Cards, they love to shoot the breeze.
Introverts, on the other hand, prefer to stay away from people and situations alien to them. They hate stepping out of their comfort zones, especially when it’s a situation like talking to a stranger or a group of unknown people.
People belonging to these two categories are very easy to spot. You just need to look for the right signs. But have you ever wondered how these completely opposite sets of people handle their finances?
Do extroverts really have an edge over introverts, who can barely hold up a conversation? Or do introverts have better knowledge of things, even though they don’t speak out loud? Let’s analyse both their behaviours to find out who takes better financial decisions.
How to spot an extrovert: They love to talk and interact with new people, they exhibit confident behaviour most times, they are never afraid to voice their opinion and they love to communicate.
Let’s analyse the key traits of an extrovert and see how they can play a positive/negative role in their financial management.
They Have A Wide Range Of Interests
One of the best qualities of extroverts is their wide range of interests. As a result, they are always extra curious about learning new stuff. This good habit significantly increases the chances of extroverts trying to explore wider spectrums of the world of finance. As they tend to explore more, their knowledge automatically increases. This helps them make wiser financial decisions keeping all the risks and benefits in mind.
They Act First. Think Second.
Extroverts have this tendency to always be in a hurry and they often end up doing things before actually thinking them through. Being impulsive has never done any good to anyone, especially when it comes to taking those crucial financial decisions. One small miss can lead to a big disaster. There’s nothing wrong in taking quick decisions as long as you know exactly what you’re up to. In-depth financial knowledge and quick decision-making capabilities can make a great combination.
They Love To Talk
Since extroverts love to talk, it’s easier for them to initiate a conversation and get some financial advice. They never shy away from consulting someone who has better knowledge of finance and financial products. This helps them get the best financial products that suit their needs the most. As a result, the possibility of facing a financial disaster reduces considerably.
They Are Assertive
Their high levels of confidence make them highly assertive. As a result, they keep looking out for better options for money management. The options might be slightly risky, but their high confidence levels help them handle these risks easily.
They Juggle Too Many Balls
Extroverts tend to be here, there and a little bit everywhere. They like to look for challenges and love to step out of their comfort zones. This often leads to them having too many things on their plates. Having too many things to worry about makes them lose focus and can also prove to be slightly dangerous for their financial health.
Now that we know the advantages and disadvantages of being an extrovert and handling finances, let’s move on to the other category of people who happen to be the complete opposites of extroverts.
How to spot an introvert: Well, they can be a little difficult to spot as compared to extroverts because avoiding people and crowds is something they excel in. Introverts love to stay in their own sweet bubble and try to avoid unnecessary conversations and public events. In fact, they are almost allergic to anything that’s even remotely related to talking a lot (especially to strangers). This includes talking on the phone. Their logic is simple—if something can be sorted out on a chat session, what’s the point of making a phone call?
Here’s how their unique traits affect their financial management skills:
They Live In Their Own World
Since they love being on their own for the most part, they have enough time on their hands to do productive things. Staying in their small bubble, they get a lot of noise-free time to think deeply. This helps them analyse things better. Most of them are either bookworms or love watching movies and documentaries. Hence, they tend to be highly knowledgeable and that works out perfectly for their financial matters.
They Think Twice. Actually Thrice
There’s no chance an introvert will take an impulsive decision without thinking it through. They have this habit of over-analysing things and hence tend to keep an eye out for risks and opportunities. Over-analysing and thinking too much might not sound like healthy options to you, but when it comes to crucial matters like finance, it’s always better to think again.
They Are Calm People
The chances of spotting an introvert in a very noisy place are next to zero. Even if they decide to go to a party (after being blackmailed by their friends over and over again), you’ll see them running away from the crowd, towards a tiny, quiet corner. While others enjoy dancing and group conversations, the introvert is likely to be found browsing Facebook, WhatsApp or Buzzfeed. Being calm comes naturally to them.
As a result, the chances of them giving up in case of a financial emergency are slim. They tend to stay focused and never lose their cool. This saves them from taking any risky, impulsive decisions and hence they tend to be financially safer than extroverts.
Additional Reading: Tips To Handle An Emergency That Costs More Than Your Emergency Fund
They Observe (Way Too Much)
Since introverts don’t like to talk too much, have you ever wondered what goes on inside their heads? What are they thinking about all the time? The truth is that while an extrovert keeps talking and talking, an introvert does just one thing—they observe. As a result, their memory power is overly heightened as compared to extroverts.
That’s how they always remember most of the tiny, little details about things that extroverts seem to miss out on. Their awesome observation skills help them keep an eye out for the latest developments in the world of finance. They are up to date with the latest happenings and tend to have better knowledge about all newly-launched financial products. This always works in their favour.
They Tend To Stay Indoors
Introverts are more likely to stay indoors and avoid being a part of big social gatherings. Unless you are a pro at blackmailing, you can never force them to step out and be a part of those reunions and other weekend parties. How does this affect their finances? Well, since they cancel most of these plans, they end up saving a lot (not a lot actually, since they can always order in and spend), but they still manage to save a good amount.
Savings are always a good idea, no matter how small the amount is. You have to start somewhere. And introverts take this step by staying home and enjoying a meal, rather than stepping out, going to a noisy place and overspending.
Introverts and extroverts are two completely different sets of people with their own advantages and some. So, now we come back to our question—who’s better at handling their finances? Since both have some positives and negatives, it’s hard to pick a standalone winner. If you want to be a pro at handling your finances, you need to balance both parts of your personality well. You need to balance the introvert you with the extrovert you. Once you achieve that equilibrium, money matters will be a walk in the park for you.
Talking of money management, do you know that the BankBazaar mobile app lets you manage all aspects of your finances at your fingertips? With the newly-launched Personal Finance feature, you can track your Credit Card spends, check your bank balances and even get Credit Card bill payment reminders. Not just this, you also get a daily dose of information on finance and latest happenings in the finance world.
Got enough reasons to download the app? Go ahead, do it now!