Do you think you’re good at managing money?
Can you account for every dime you have spent in the last month?
Think again.
Most people don’t believe that their personality types affect their money management skills.
People have either introvert, extrovert, or ambivert personalities. However, it will surprise many that introverts are better at managing money.
A good number of introverts have been recorded to amass wealth.
Despite their supposed quietness and love for solitude, introverts have been able to incorporate extroverts into their team.
A classic example is Bill Gates with a net worth of over $120 billion.
This shows that you can achieve financial success without having to run out of your social battery all the time.
Popular Misconception about Introverts
A popular misconception that people have is that introversion puts them in a tight corner. They feel this way especially when it concerns important things like finances, dating, or public speaking.
However, that’s not the case. Introversion can work wonders for you if only you use it to your advantage.
But before delving into that, what are the core differences between introverts and extroverts? How can you identify one?
Introverts vs Extroverts
Contrary to popular misconception, the only difference between extroversion and introversion is their source of energy.
Extroverts obtain energy by socializing and engaging with people. Introverts, on the other hand, obtain energy by spending time alone or with very few friends.
Most introverts are not shy. A lot of them do very well by taking up leadership positions in companies and organizations.
A good number of introverts even go as far as enrolling in schools of performing arts or even becoming professors.
What about Ambiverts?
Good question.
Ambiverts have a smooth blend of both introversion and extroversion. They neither identify as introverts nor extroverts.
However, most people are polarized between the two extreme personalities but lean strongly towards one. So, most people identify as the personality they lean more towards instead of identifying as ambiverts.
The best way to find out your personality is by taking the Myers-Briggs Personality Test.
If you find out that you’re an introvert, here are a few ways your introversion can aid you in managing money and building long-term wealth.
Are Introverts Good At Managing Money?
Do introverts care about money?
Yes, they do. However, they don’t feel as much need to splurge or spend on a lot of things like extroverts.
Extroverts typically spend more money because they value rewards and instant gratification.
Here are some unique qualities that Introverts have:
They Invest Wisely
What is the major cause of bad investments? Poor decision-making.
Most financial disasters could have been avoided if the parties involved had taken more time to analyze the situation before sticking their head underwater.
Extroverts are prone to making bad financial decisions. This is because they value instant gratification. They feel it gives them a sense of accomplishment or achievement.
Introverts, on the other hand, contemplate more on decisions before acting. They don’t act rashly without researching and checking all loopholes, no matter how lucrative it may seem. They proceed only on solid guts that are research-based.
In the U.S News Interview with the New York Times’ Bestselling-Author of the book, “Quiet: The Power of Introverts in a World That Can’t Stop Talking”, Susan Cain explains that introverts don’t mind delayed gratification, as long as it will yield the right results.
They process things slowly and act accordingly.
They Are Good at Managing Money Because They Don’t Act on Impulse
Core introverts are the most disciplined people you’d ever meet when it comes to finances. They have a clear idea of what they want to do before acting.
They carefully make decisions; this is an important trait all wealthy people have.
Introverts are guided by consequences, unlike extroverts whose actions are guided by immediate rewards.
When they lock themselves in their room, extroverts don’t want to overthink and ponder on the consequences of their actions.
Introverts Follow Through on Strategies to Reach Goals
Most introverts don’t care about public opinions.
Once they have set their minds on a goal, they will map out effective strategies to ensure that they reach those goals.
Regardless of the path, they’ll reach their goals (well, as long as it’s not illegal).
Extroverts, on the other hand, value public opinions to an extent. They’d want to reach their goals but will try to work within the confines of people’s expectations.
If they’re used to taking flights to a certain destination and life knocks them over, they might have a hard time adjusting to road trips especially if they’ve garnered a certain “social status”.
They Are More Creative When It Comes to Earning
Introverts are more calculative and creative.
They’ll carefully analyze the situation, and check for the pros and cons. Then, they strategically plan to execute their ideas outside.
Extroverts, on the other hand, like to try out everything they lay their hands on.
They have portfolios for different job sets and fit in when required. This is why they have a hard time choosing a job or skill to focus on.
You’d hardly see an introvert that is a jack of all trades. This trait helps them to be creative with earning and managing money.
They Do Well In The Workplace
Introverts are not only careful spenders and thoughtful investors, but they are also good employees.
They do well in their respective workplaces, which helps them to get promotions and make more money.
People underestimate introverts because they are not as outspoken as extroverts. However, this doesn’t mean that they won’t do well. They are charismatic and intuitive people.
Introverts can break grounds when they prepare, are present in the moment, push themselves beyond their comfort zone, and practice hard.
It’s only a matter of dedication, consistency, and perseverance.
Why Do Extroverts Have a Hard Time Managing Money?
Some extroverts want to feel the satisfaction made by an instant purchase, instead of the rewards from future investment returns.
This is why they’re associated with shopping addictions and attending flamboyant parties to maintain social attractiveness.
They enjoy buying new clothes and accessories for every occasion.
Extroverts have to exercise more patience and self-control if they want to build wealth.
How Do Introverts and Extroverts Manage Money?
Everyone knows that building wealth starts from creating the right habits.
Introverts and extroverts have different financial habits that regulate how they spend and save money.
Extroverts spend more money because of their personality type.
What Do Extroverts Spend Money On?
Retail Therapy
As mentioned earlier, some introverts are more thoughtful spenders.
Extroverts value external rewards and immediate satisfaction. To them, what could be better than getting the latest pair of sneakers or having the latest iPhone?
Most times, extroverts do retail therapy to make themselves happy, even if it’s detrimental to their future.
This is especially true when they have a certain social status or have a certain reputation in society (or among their peers).
Social Functions
Extroverts get energy by socializing with family and friends.
They can barely stay a week without socializing with people or attending one function or the other.
Because of this, they spend money on lots of social events (dining at restaurants with loved ones, getting new outfits for luxurious parties, meeting friends at bars, etc.)
Brands With Good Advertising and Marketing Skills
Research has shown that extroverts are more moved by brands with strong marketing and advertising skills than introverts.
Positive peer associations can cause extroverts to spend more than they normally would on these products.
Luxury Goods
People easily influence their thoughts and actions. They are very quick to keep up with the Jones’s.
Rich extroverts can go a long way to purchase luxury items that give them some level of prestige.
They love unique designer items and reserve preferential treatment for them. They love to have things most people don’t have access to.
Low-income extroverts spend money on status goods and associate with brands, even when it’s not original. This is why they’re often terrible at managing money.
What Do Introverts Spend Money On?
Less on Retail Therapy
Introverts think about the future. Instant gratification and external rewards don’t move introverts. They carefully calculate and plan every purchase.
For instance, if they want to buy new fancy television, they weigh the long-term and short-term benefits on their finances and standard of living.
Less on Social Functions
Introverts get their energy by spending time alone. They easily get drained when they socialize with people.
This is true especially for certain introverted personality types, even when they’re with close family and friends.
This means that they won’t be tempted to spend money on unnecessary social functions.
They won’t be tempted to impress anyone.
Introverts who are conscious of their finances are very good at managing money and avoiding expenses.
Their body language shows this.
Less on Luxury Goods
Introverts don’t spend as much money on luxury goods to enhance social status as extroverts do.
Their inner objectives and the solace gotten from solitude motivates them.
Introverts are less likely to judge others externally. For instance, with regards to what they wear and buy.
They’d rather chase meaningful connections with people, and unfortunately, it’s difficult for most to form.
This is why they often have few but deep and meaningful friendships.
