Every human being is born with a different personality. An individual's personality is influenced by his/her surroundings, those around him/her like family members, friends, neighbors and even the environment condition where he/she lives for a certain period. An individual's personality is said to be irreversible, but in fact it can be developed and improved even if it doesn't change the person entirely. It also cannot be imposed, because personality develops instinctively and naturally. With the differences in personality, the needs, desires and characteristics of a person also vary even from birth. Our needs and desires develop through a continuous life process.
Personality does not only affect the nature and character of a person, but also shapes a person's reaction to an event or happening. When facing an accident or another occurrence, every person will display different reactions. Some will get nervous because they are unable to solve their own problems. Some are relaxed and calm because they know what to do in this particular situation. Others do not worry because they are smart enough and think ahead of the situation like getting protection by buying insurance. Personality turns out to play an important role in financial planning and decision making. The following are types of personality and how it affects financial planning:
People who love shopping are included in this type of personality. The player type tends to be wasteful, extravagant, and does not prepare for possible financial risks. According to financial expert, Ray Linder, someone who has a player personality tends to be compulsive and impulsive or often imagine buying so many things without doing the right financial calculations, this greatly affects financial planning. This type of personality is dangerous or troublesome when the attitude appears to no longer care about one's financial status and potentially create debt.
The protective type is appropriate for financial planning. Every person belonging to this type of personality will allocate the funds they have for the future. They will choose to spend wisely, save money, invest it and buys policies for guaranteed protection like health insurance or work accident insurance. A person that belongs to the protective type is calm in nature and thinks things thoroughly in details. They will not spend a lot of money just shopping for items that are in trend or buying goods that will only be used once or twice.
The third type of personality is the planner. Someone who is a planner is almost similar to the protective type. The difference is that the planner is more careful and structured when it comes to financial allocation. They allocate finance for investments that can guarantee their future like saving for protection with health insurance and other types of insurance.