An introvert or an extrovert - Who is better at financial management?
  • SUBSCRIBE
  • WHAT TOPICS ARE YOU INTERESTED IN?

    Step 1 of 3

    NEXT Skip

    HOW OFTEN WOULD YOU LIKE UPDATES ?

    Step 2 of 3

    EMAIL ID

    Step 3 of 3

Get The Latest Updates

SUBSCRIBE

An introvert or an extrovert - Who is better at financial management?

  • Highlights

  • Your personality type can govern financial decisions

  • Introverts think through every investment option

  • Extroverts tend to act impulsively

  • Balance your investment strategy by taking inspiration from the opposite personality type

The way you manage your investments is a product of several factors, your personality being one of them. Typically, whether you are an introvert or extrovert, your personality will have some bearing on your financial decisions and thought process. Read on to know your personality type and how sound your financial decisions are.

What is your personality type?

Introvert

The traits that define this personality are:
- You prefer to interact with fewer people
- You do not get agitated easily
- You have an eye for detail
- You rethink your options and decisions

Extrovert

The traits that define this personality are:
- You tend to lead the group
- You are talkative and social
- You are always confident
- You accept challenges head-on

Now, let’s take a look at how each type approaches financial matters-

1. Dealing with risk

As an introvert, you tend to be more conservative when it comes to taking on risk, whereas extroverts have a tendency to be more open to taking risks with your money. No matter which side of the line you fall on, it is wise to create a balanced portfolio with high-risk and conservative investments.

For example, while you may be interested in equity investments, weigh the risk very carefully. Consider investing in SIPs or take a moderate route by opting for ULIPs to generate high-earnings with lesser risk.

2. Planning for retirement

While introverts are usually more mindful of the future, as an extrovert you may be planning for short-term goals more aggressively. The best way to proceed is to chalk out both short and long-term goals and plan your finances by enjoying your life in the present, while saving for the future in a disciplined manner.

3. Research before investing

It is necessary to research adequately before making any financial investments. However, if you are an extrovert, then it is likely that you are impulsive and quick at making financial decisions. For instance, you are more likely to act on an investment tip from a friend than an introvert. They, on the other hand, tend to subject every financial decision to extensive research and scrutiny. This has its pitfalls too, as it can lead to missed investment opportunities. So, strike a balance between thoroughly researching key features and the prospects of your investment, talk to experts, read blogs and act upon lucrative options in a timely manner.

4. Keeping track of investments

As an extrovert who takes on multiple projects at once, it is possible that you neglect your investments and so, lose out on saving opportunities or miss warning signs when it comes to finance. On the other hand, if you are an introvert it is likely that you will spend more time monitoring your investments. In this regard, having a balance is key. Follow up on your investments periodically to see if they are meeting the goals that you have in mind.

Use the positive traits of your personality to grow your investment and overcome your drawbacks by taking inspiration from the opposite personality type. This approach will ensure that your investment strategy is balanced.

How would you rate this article

 Please let us know why?

What did you dislike?

What did you dislike?

What did you like?

What did you like?

What did you like?

Next up

6 smart tips to save money when you shop online

PRODUCT GUIDANCE

6 smart tips to save money when you shop online