When it comes to making financial decisions, sometimes our focus can be solely on our bank balance, income, and expenses.

Have you ever stopped and considered your personality could play a significant role in how you manage money? Personality traits can influence financial decisions. Therefore, it’s important to understand, your personality could have an impact on your financial decision making.

Risk Tolerance: Some people are more risk-averse than others, while others are more comfortable with risk. If you have a low risk tolerance, you are more likely to invest in low-risk investments such as term deposits, while those with a higher risk tolerance may choose to invest in more growth orientated investments such as shares.

Impulsiveness: If you are impulsive, you tend to make decisions based on emotions rather than logic. Impulsive people could potentially make poor financial decisions, such as overspending, taking on too much debt, or investing in risky ventures without adequate research.

Self-Control: Self-control is an essential personality trait when it comes to managing money. People with good self-control are more likely to stick to a budget, save money, and resist the temptation to overspend.

Financial Knowledge: If you have a greater understanding of financial knowledge, you are more likely to make informed financial decisions and avoid costly mistakes.

While it’s essential to understand how your personality influences financial decisions, seeking advice from a professional Financial Adviser is crucial in helping to alleviate financial stress. Here at Hewison Private Wealth, our experienced Financial Advisers are experts who can help you create a financial plan based on your unique needs and goals rather than your personality type. Seeking financial advice from one of our experienced Financial Advisers is important, based on these reasons:

Objectivity: We provide objective advice based on your financial situation and goals. We are also not emotionally attached to your finances, and therefore, we can offer unbiased advice.

Accountability: We stay accountable to your financial goals. We can monitor your progress and make adjustments to your plan as needed to ensure that you stay on track.

Expertise: Our knowledge and expertise can help you make informed financial decisions. We can provide guidance on investment options, retirement planning, estate planning and insurance.

Understanding how your personality influences financial decisions is essential to achieving your financial goals.

Personality traits such as risk tolerance, impulsiveness, self-control, and financial knowledge can all affect your financial decisions. However, seeking financial advice from a professional Financial Adviser, can help you make informed decisions, stay accountable to your goals, and ultimately achieve financial freedom.

If you want to improve your financial situation, consider talking to one of Hewison Private Wealth’s many experienced Financial Advisers, you can connect with us HERE.