Most people fall into either the introvert or extrovert personality. If you’re not familiar with what these terms mean, I’ll explain them a bit. Introverts tend to be purposefully reserved, and they feel recharged after alone time. Extroverts however, tend to be thought of as being vocal and outgoing, and they feel energized by interacting with people. (Just today I heard about Ambiverts! These are people who have an equal mix of both the introvert and extrovert traits.) If you’re not sure which personality type you are go take this Extroversion Introversion Quiz, and come right back.
The topic of introverts and extroverts has been super fascinating to me for quite a while because when I was a kid I was constantly getting told I was quiet or shy, and it drove me nuts! I always took it as an insult, and vowed I would never call my kid shy when I grew up because it was a label I hated having put on me. Particularly, because I didn’t see myself as shy. Reserved and cautious around strangers, sure. Careful about my words and actions around strangers, yes, definitely. Quiet? I could see that. Shy though? Nah. I was choosing not to talk. And when I wanted to talk, I did.
As a kid I wasn’t sure to make of all this “shy” business. When I was around 11 or so, we were in a used bookstore, and I came across a book that was called something like, “Overcoming Shyness”, or something to that effect. I convinced my mom to buy the book for me, and then I read it ASAP so I could try to find the solution to my “problem”. (Oh… :’( didn’t mean for that to sound so sad! I want to go back and give my young self a hug.) I even wrote a letter to Dear Abby, and I asked her for advice on how to not be shy anymore. I don’t remember what she said exactly but I do remember feeling very hopeful when she wrote me back.
After all my research, and attempts to “fix” myself, and turn myself into an extrovert, I found, over time, that I just had to get more comfortable with who I was. I had to start doing things that I was proud of. Playing sports, taking photographs, and doing good things for other people. Slowly but surely, I gained confidence, and my anxiety around people lessened. I realized that being reserved isn’t a “bad” thing at all, that alone time is a necessity for me, and now, sometimes, you can’t get me to shut up once I get talking.;)
Not surprisingly, your ability to manage money may be directly related to your natural-born personality, and your personality traits may directly influence your knack –or lack thereof – of managing money.
Here are 7 Advantages that Introverts May Have When it Comes to Money (and we’ll talk about the advantages extroverts have in an upcoming post!)…
1. Introverts Exercise More Caution
By nature, introverts tend to be more cautious when it comes to risk-taking. When it comes to money, they may be less likely to make investments that are not sound, and are prone to saving their cash towards the goal of a stable, secure future. Introverts may be less likely to fall for scams and schemes that cost them money.
2. Introverts Ponder Things Deeply
Introverts are known for their tendency to process things internally. They tend to think more deeply about all kinds of issues. When it comes to money management, they will more likely consider all sides of the equation before making a decision. They do not generally rush into a decision without thoroughly thinking it through. This trait may give introverts a leg up when it comes to avoiding wasteful spending like impulse buys.
3. Introverts Observe More Carefully
Introverts are true observers. They may not have much to say but it doesn’t mean they are not paying attention to the word around them. When it comes to making money or making plans to keep money safe, they likely will collect information from all sorts of places before making a decision. They will also certainly read the fine print on everything they consider.
4. Introverts Listen Closely
Because introverts typically don’t spend a lot of time talking about themselves or boasting about things they want to talk about, they can be very careful listeners. Introverts can take in and retain more information which they can incorporate into their own financial planning.
5. Introverts May Be More Creative at Earning and Saving
While an extrovert may be more willing to try new things to make money, introverts tend to be more creative. The ideas they mull over silently may be more strategically planned and creative than those making decisions on a whim. This can be beneficial when deciding on new ways to earn more money and properly handle the money they already have.
6. Introverts May Be More Likely to Follow Through on Strategies to Reach Goals
Introverts may be less inclined to flights of fancy that cost them money. Once they have a well-thought out plan, they may be more motivated and more disciplined about sticking with their plan and following through on strategies to reach their short and long-term goals.
7. Introverts May Be Less Inclined to Spend Socially
Because introverts are careful and introspective, they may not be as easily influenced by what the crowd is doing, and forgo the “popular” choice in lieu of the one that feels more authentic to them. Also, introverts may be inclined to save more of money simply because they prefer to be alone, and therefore, don’t participate in as many social activities that cost money.
Are you an introvert or an extrovert? I’d love to hear what do you think the advantages of each personality type is when it comes to money. (Or shoot, with life in general!)
P.S. How to convice your friends and family that being frugal might actually be kind of okay, Susan Cain’s The Power of Introverts TED talk, and Quiet: The Power of Introverts in a World That Can’t Stop Talking