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Extroverts have better financial outcomes, according to a new study.

In a new study conducted by the University of Georgia, it was that your personality may have a significant impact on your financial decision- and risk-taking abilities.

It has been published in the ‘Personality and Individual Differences Journal’ that the findings of the were revealed.

Exley investigated the “ Five” personality traits of openness, conscientiousness, extroversion, agreeableness, and neuroticism as part of his Ph.D. studies in psychology (OCEAN). The Resilient, Over Controlled, and Under Controlled personality profiles, which are associated with risk-taking and money-management behaviors, were discovered by him and his team, who also discovered three distinct combinations of traits that are associated with financial .

‘According to our findings, the who have the best financial outcomes tend to be those who are well-adjusted, more extroverted, and less neurotic,’ Exley said.

As he continued, “They’re also willing to take some risks, but they don’t take too many.”

Exley was drawn to this after 25 years of experience in the financial services industry, where he was exposed to a wide range of people’s financial attitudes and behaviors firsthand. There was no one with the same money personality as the next.

In his , “the industry requires us to measure this thing called risk, but after talking to a lot of people, I realized that there’s more to someone’s financial life than just their risk tolerance.”

This realization led him to begin studying psychology under W. Keith Campbell, a professor at the University of Georgia’s Franklin College of Arts and Sciences who specializes in cognitive psychology. In Exley’s case, it was Campbell who suggested that differences in personality might be at the root of the differences he had observed in his field. From there, their investigation took off.

To Exley’s research, the team polled 395 participants about their personalities, financial risk tolerance, net worth, and overall level of happiness.

Patrick Doyle, co-author and recent Ph.D. graduate in psychology, explained how they used advanced statistical modeling to identify three overarching types of based on combinations of their OCEAN scores.

After that, he continued, “we looked into how members of those three groups differed in their financial perspectives and experiences.”

The Over Controlled had the highest agreeableness and conscientiousness scores, but had the lowest extroversion scores of the three groups studied. These individuals were fearful of taking risks, and as a result, they avoided activities that were potentially risky but had the potential to increase their wealth, such as investing in the stock .

The other two profiles, on the other hand, were more risk tolerant. The second-largest group, the Resilient group, consisted of who were generally well-adjusted and stable; they were extroverted, and agreeable, and did not exhibit signs of neurosis. It was found that these profiles were associated with more financial outcomes because while they did not avoid risks, they did not take on an excessive number of them.

Members of the Under Controlled group were less conscientious and more extroverted and neurotic than those in the Over Controlled group were. They had a tendency to taking risks, but they occasionally took too many, which had a negative impact on their net worth.

The team’s sheds light on a topic that has received little attention previously. The psychological aspects of money have been shown to have a significant impact on better-researched subjects such as marriage and parenting, but Campbell says it is still uncommon to investigate the psychology of money in and of itself.

“Really, it’s a cross-disciplinary effort. It involves taking very basic models of personality, combining them with sophisticated statistics on psychometric approaches, and then applying them to very basic questions about investing and finance, as explained in detail here “he explained.

Because there are such strong associations between the profiles and financial outcomes, the researchers hope that their findings will allow financial planners to better serve their clients, allowing them to assist people in making the best financial decisions for their circumstances.

“If planners want to be of assistance to people, they must measure OCEAN,” said Exley.

In addition, he stated that “if people can easily talk about themselves—and this tells you a lot about how they handle money—then practitioners simply need to measure and record it.”

John Grable, Professor of Athletic Association Studies in the University of Georgia College of and Consumer Sciences, is also a co-author on the paper.

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