Introverted or extroverted? So you will spend your money as you areOn July 3, 2019 by John Albarran
There are many things that influence how you spend your money. The character is one of them. An introvert or an extrovert will not spend money in the same way.
Indeed, there are many things that are going to influence your use of your savings. From the financial status of your accounts, to factors such as education, your tastes, and also, of course, your personality.
Although more and more people decide to choose frugality and minimalism for personal economy , the way they spend has a lot to do with the way they are. A shy and introverted person does not spend the same way as an outgoing person.
Broadly speaking, outgoing people are more social and draw more energy from the relationship with other people. Outgoing people value time alone more and focus their gaze inward rather than outward. As it turns out, this type of traits and behavior is very strongly related to the way we spend money .
In short, your personality greatly influences how you use money .
Outgoing people spend more
Several studies state in recent years that extroverts have lower savings rates than introverts . It is not only about studies at the local level, it is a proven and widespread reality.
One of the main reasons for this reality has to do with the fact that outgoing people are more sensitive to immediate reward. That is, they are willing to spend their money on experiences or articles that give them rapid and strong blows of dopamine . Financial decision making can also be influenced by this aspect.
In fact, it is stated that, when planning retirement, outgoing people have a tendency to look less to the future, and to lesser value long-term savings.
At the other extreme, outgoing people not only show less compulsion when it comes to spending , they also value savings in the medium and long term. In fact, they tend to be much more methodical and thoughtful about the value of their money.
Going deeper, we can extract from different studies that those low-income extroverts tend to spend a lot of money on status goods . We would be talking about goods such as clothing, technological devices, etc. Theoretically, introverts are at the opposite pole.
Learn to adjust spending and align with personality
In the first place, analyzing the extreme cases, condemned to live with little money because they spend more money than introverts. In fact, it has been shown that introverts, when they struggle to emulate extroverts, experience increased happiness . All this makes reality even more complex than we thought.
Actually, what it is about is finding balance. For example, outgoing people who have problems with compulsive spending should consider using tools to alleviate the problem . They are not difficult things, from creating a budget and sticking to it until using shopping lists before buying anything. On the other hand, for these people, making calculations of the money that is stopped entering retirement , can be very interesting when it comes to valuing more long-term savings .
In the case of introverts, saving is usually quite well managed . However, at the beginning of the management of a long-term savings portfolio, taking certain risks can be very interesting and provide greater profitability. Adjusting risk tolerance a bit, and also assessing short-term savings , can be a good exercise for this type of personality.