Financial struggles? Your personality type might be responsible
How the OCEAN personality model correlates to financial wellness
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Jumping through all current financial hoops on a daily basis gets tiresome for anyone, given the pandemic, but there’s a special type of person who’s always affected by financial struggle.And you’ve probably already met one, haven’t you?
Maybe it’s yourself who’s under pressure seven days a week and can’t seem to figure out what’s wrong; you’ve got a reasonable income, yet money puffs away every month since pretty much ever.
Well, be it you or someone you know, this article might very well give you the insight you need to understand the role of personality (Measured by the OCEAN model, also called The Big Five Model) on personal finances and financial distress.
High Openness to Experience correlates positively with financial distress.
The Openness to Experience dimension refers to your interest in intellectual pursuits, related mainly to topics like philosophy or art, and your tendency to look for new perspectives in any topic. A person high in this trait is much more willing than the average to embrace new ideas and novel experiences. This trait is positively correlated with liberal political views and intelligence (As measured by I.Q.).
Why does high ‘Openness to Experience’ correlate positively with financial distress?
While longitudinal studies* don’t explain this (As they have studied correlation and not causation) an explanation (With causation presupposed) might be that people high in openness tend to be easily distracted. This does not mean they have ADHD by the way. It means that someone high in openness tends to observe their playing field laterally and look for new experiences and possibilities everywhere they go, thus hindering their development in any single marketable area. Plus, if they’re artists of any kind, making money with their productions will be extremely difficult, aggravating the problem even further.
How can financial distress related to high Openness to Experience be fixed?
Assuming the explanation above is correct, then a possible solution is to dedicate time, everyday, to the same skill. If you have high openness you might read about history of the great russian authors, then go and write something, then learn how to cook a recipe you don’t even have ingredients for. Well, you can see how this might damage income or put in tight spots frequently. Try to focus more.
Low Conscientiousness correlates positively with financial distress
The Conscientiousness dimension refers to your orderliness and impulse control. The higher in Conscientiousness you are, the more you act in socially acceptable ways. A person high in this trait is recognized as hard-working, responsible and predictable. This trait is positively correlated with conservative political views and negatively correlated with intelligence (As measured by I.Q.).
Why does low Conscientiousness correlate positively with financial distress?
If we imply causation, then we can obviously infer that someone low in conscientiousness (a.k.a. someone ‘careless’) would experience more financial distress. Conscientious people tend to be very efficient at management tasks, financial or not; and while high conscientiousness is negatively correlated with intelligence, they seem to more than compensate for that.
How can financial distress related to low Conscientiousness be fixed?
If you are low in conscientiousness you can start writing down your expenses (At least the most expensive ones) and make an effort to plan how to reduce them.
Such system might seem like a cage right now, and you might be repulsed by the idea of sitting down and doing something you very clearly don’t want to do, but give it a try (A real try) for a month and see where it gets you. Then decide whether you find it useful or not.
Low Extroversion correlates positively with financial distress
The Extroversion dimension refers to the activities that energize you in relation to socializing. A person high in Extroversion tends to pursue socialization and any activity that encourages it. By this metric, an extroverted person looks at people as learning and recreational opportunities.
Why does low Extroversion correlate positively with financial distress?
As far as causal relations can get us, low extroversion may be more correlated to financial distress simply because anyone with low extroversion often feels reluctant to go and talk to people, to go and ‘negotiate’. This, in turn, might waste opportunities of salary raise or might impede the person to get a fair treatment. They make as well less connections, and, as they stand out less (Or they just don’t stand out in the ‘right’ way) a great deal of opportunities will be, definitely, defenestrated out of the 10th floor.
How can financial distress related to low Extroversion be fixed?
You first and foremost need to learn negotiation, and how to speak up for yourself. This is an exercise on courage more than anything else, and will take a while to get used to it, but you can start with micro-exercises. Has someone ever asked you what your favourite artist or music genre is? Did you respond with something akin to “I’m pretty much okay with anything”?
Although it might not seem like it, that’s a failure in negotiation. Human relationships always hide a ‘social contract’ of sorts, and not only business relationships, normal relationships do too. So, henceforth, start answering more honestly to minute questions like that, and you’ll start noticing improvements relatively quickly. You don’t need to start ‘showing’, let’s say, yourself everywhere; just stop hiding.
High Agreeableness correlates positively with financial distress
The Agreeableness dimension refers to your way of interacting with people. This shouldn’t be confused with Extroversion as extroversion is a measure of how much you are energized by the presence of others. A person high in Agreeableness tends to be altruistic, considerate and kind. From an outsiders perspective, an agreeable person is self-sacrificing. On average, women are higher in agreeableness than men.
Why does high Agreeableness correlate positively with financial distress?
Agreeable people always have a hard time imposing rules, negotiating and stating what they want. And while they always seem predisposed to help others first and then worry about themselves, agreeable people have their interest too (Of course), they just don’t know how to ask for what they want.
Thanks to this, agreeable people tend to be stepped on (Preponderantly in corporations) and used by others for their own benefits, making it difficult for any agreeable person to get a raise.
How can financial distress related to high Agreeableness be fixed?
As happens with low Extroversion, you should learn negotiation through micro-stepping. This will be much more difficult for agreeable people, though. In overcoming such difficulties I can’t help. Maybe visiting a coach or therapist is a good idea.
Given your extremely pacifist nature, if you are agreeable, you might hold grudges towards many who, seeing you never stood up for yourself, have harmed you. But, as Dr. Carl Gustav Jung said:
“…no matter how much parents and grandparents have sinned against the child, the man who is really adult will accept these sins as his own condition which has to be reckoned with. Only a fool is interested in other people’s guilt, since he cannot alter it. The wise man learns only from his own guilt. He will ask himself: Who am I that all this should happen to me? To find the answer to this fateful question he will look into his own heart”
High Neuroticism correlates positively with financial distress
The Neuroticism dimension refers to your relationship with yourself and your situation. As the name implies, it measures negative feelings and emotional stability. A person high in Neuroticism is often fearful, moody and insecure; anxiety rules her heart. On average, and as happens with agreeableness, women are higher in Neuroticism than men are.
Why does high Neuroticism correlate positively with financial distress?
Judging by the evidence, there’s no causal explanation at all. This makes sense, as neurotics tend to worry about everything, and so, financial distress will be high as there will be perceived financial threats everywhere.
An interesting fact: neurotics have, on average, much higher wages than the opposite end of the Neuroticism spectrum.
How can financial distress related to high Neuroticism be fixed?
Given that there is no inferred causal explanation, there’s nothing to be really solved here. Financial distress caused by perceived financial threats everywhere can only be fixed if you learn to relax and take things more calmly; that’s it
A final word
If you’ve just finished reading the article and still don’t feel right about it, remember: Personality is only one factor of many to influence financial distress and income. Take this information with a grain of salt and, more than anything, get this straight right away: Some of this positive correlations, for example between low extroversion and financial distress, aren’t that positive or different from the correlation between the opposite end of the spectrum and financial distress. That is, the correlation between financial distress and agreeableness, and between financial distress and disagreeableness aren’t opposite to each other; one is just more pronounced.
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Dictionary:
Longitudinal Study: Study realized on the same individuals repeatedly until time has been considered enough to generalize result. Typically, this studies take years to complete.
