genesis domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /services/webpages/f/i/financialpsychologycenter.com/public/wp-includes/functions.php on line 6114Let\u2019s be real: You may not know\u2014or think about\u2014the psychological factors that contribute to your financial decisions. But if you want to build healthy financial habits and improve your relationship with money, this topic is worth exploring.<\/span><\/p>\n \u201cOur personality has a huge impact on our behavior, preferences, and values,\u201d says Alex Melkumian, PsyD, founder of the\u00a0Financial Psychology Center<\/a>\u00a0in Los Angeles, CA. And when it comes to money, he says that each of our personality traits can impact our financial psychology and mindset in different ways.<\/span><\/p>\n The “Big Five” personality traits<\/span><\/strong><\/p>\n Your personality exists on a spectrum\u2014that means you don\u2019t have a single personality type or show one personality trait (people are complex, after all). However, scientists have developed a\u00a0personality model<\/a>\u00a0that identifies five traits found in most human beings:<\/span><\/p>\n “Every person embodies some portion of all five of these,\u201d says Dr. Melkumian. \u201cThey\u2019re neither good nor bad, but each one can have a negative and positive impact on how you deal with money.\u201d<\/span><\/p>\n Want to know where you land? You can take a free personality test\u00a0here<\/a>\u00a0or\u00a0here<\/a>. Keep reading for a breakdown of how each trait could affect your finances.<\/span><\/p>\n 1. Openness to experience<\/span><\/strong><\/p>\n Openness to experience ranges from being closed to being open and reflects your creativity and curiosity. It could show up in whether you\u2019re game to try new things or prefer to go the conventional route.<\/span><\/p>\n \u201cOpenness can be a driving force behind a lot of financial success,\u201d Dr. Melkumian says. \u201cCreatives [can be] really high in openness, for example.\u201d However, people who are more closed may have an easier time implementing new plans.<\/span><\/p>\n 2. Conscientiousness<\/span><\/strong><\/p>\n Conscientiousness ranges from spontaneous to conscientious, and it reflects your thoughtfulness, organization, dependability, and grit.<\/span><\/p>\n Conscientious people tend to be dependable and punctual, which can be a positive trait in a money manager, but they may also seek validation from others. \u201cThey may worry about what others will think of their financial decisions,\u201d says Dr. Melkumian. \u201cIt may prevent them from taking a risk that they should [consider].\u201d<\/span><\/p>\n 3. Extroversion<\/span><\/strong><\/p>\n Extroversion ranges from introverted to extroverted and reflects your sociability, assertiveness, and how you feed off the energy of others.<\/span><\/p>\n Some people are also somewhere in the middle (ambiverts), or move from one end of the spectrum to the other. “You need a little bit of both to be the best professional,” says Dr. Melkumian. The extrovert in you can help you connect with others, while the introvert will keep you from being overly concerned about others’ approval or validation.<\/span><\/p>\n 4. Agreeableness<\/span><\/strong><\/p>\n Agreeableness ranges from hostile to agreeable and reflects your honesty, generosity, and how you care for and trust others.<\/span><\/p>\n\n
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