How Being an Introvert or an Extrovert Impacts Your Finances

Whether you’re a thrill seeker looking for the next investment craze or a subdued deep thinker that analyzes every aspect before taking a plunge, you’re temperament plays a major part on your finances. The differences in how introverts and extroverts manage their money can vary as extremely as their personalities.

Introverts by nature are relatively quiet and self-composed individuals. According to the Myers-Briggs Foundation, the organization that develops the well-renowned personality tests, they should not be mistaken for being shy or socially apprehensive. Introverts are typically reserved and deliberate intellectuals. Most often, they can be found on the outskirts of the crowd at a mixer engrossed in thought provoking conversations.

Some of the characteristics that benefit introverts which could also benefit you in terms of personal finances are:

1. Heightened observation- By carefully reviewing the various factors for any financial and/or credit related decision, you’ll be more likely to avoid entering into burdensome obligations.
2. Being complacent- It’s alright to miss a couple of those social gatherings every now and then. That’s time and money you could use in your favor.

Try avoiding these negative character traits of introverts:

1. Slow to make decisions- Knowing all the angles before making a decision prepares you for what you’re willing to embark on. Keep in mind that you could miss out on small windows of opportunity, like putting an offer on a house or getting a bargain on your choice of stocks.
2. Trusting only a few- By opening up to more trustworthy people, you could easily learn from their financial success or follies.

Extroverts, on the other hand, tend to thrive on external stimulation, especially through social interaction. You can count on them to be the life of the party while making new friends practically everywhere they go. These outgoing and confident individuals can certainly influence a crowd.

Several of the characteristics that benefit extroverts as well as you in terms of your finances are:

1. Being assertive- Staying on top of your finances requires constant attention. There are always newer tools and products on the market which are there to protect your investments.
2. Talkative abilities- Ever tried saying your ideas aloud to help you reach a solution? The same applies to your upcoming major purchases or investment decisions. Your trusted financial planner will be able to shed light on your situation.

Be sure to avoid these negative characteristics of extroverts:

1. Involved in many activities- Rather than make your head spin at the thought of gaining financial insight, focus on understanding and applying  just a few concepts at a time.
2. Act first, think later- Every means based decision requires a thorough piggy bank considerate plan.

Truth is, no one is strictly introverted or completely extroverted. In any given situation we’ll act one way then behave differently in the other. We can’t compare apples to oranges, but we can appreciate each other for our distinct qualities. It’s best to implement the beneficial tactics from both ends of the behavioral spectrum in order to maximize your financial potential.