# Introverts vs. Extroverts and Personal Finances



## callyhan (Dec 7, 2010)

A book I've been reading lately "The Intorvert Advantage" has made me think about the differences in temperaments and how they relate to personal finance. I'm a typical left-brain introvert, and I think it's made me more responsible towards my own finances and planning my future. I'd much rather be close with a small group of people with a similar lifestyle as mine, and have little desire to try and "keep up with the Jones's" especially if I have never met them and don't interact with them in everyday life. This book has implied that for every introvert, there are three extroverts in the world. I wonder if being extroverted has any correlation to taking on debt or living within one's means.

I'd love to hear everyone's opinion on this and whether you think you are an introvert or extrovert?


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## Spidey (May 11, 2009)

I think introverts are more naturally drawn to investment analysis and financial planning than extroverts as it tends to be an activity without much social stimulus. Most stock analysts that I see on BNN more closely represent the temperament of Warren Buffett than that of Richard Branson. Extroverts, of course, can become wealthy but they would tend to do so through paths that utilize their social skills - such as real estate agents.

Myself, while I enjoy good company and the occasional social gathering I would fall into the introvert camp.


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## jet powder (May 29, 2012)

According to definition on net introverts enjoy exploring thier thoughts & feelings. The little boy who saw the emperor was wearing no clothes trusted his own eyes & did his own thinking.

Livermore found he lost money if he was around people when trading. I know of traders that make money will not turn on CNBC or read anyones elses work because they say it effects thier thinking & causes them to lose money. They do thier own research & d not look to see what everyone else is doing so they dont herd

Being an independent thinker I think is important when investing, as well as using a rational standard for gauging esteam because it effects all of ones other value judgements. The first step to becoming a good investor as well as achieving any goal that the majority is not achieving i.e., being financialy independent is learning how to think to achieve the truth. But if someone is not committed to reason what good will the knowledge do them. Commitment to reason is the best standard I have found for gauging my esteam & allowing me to achieve goals.


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## rikk (May 28, 2012)

I suggest first define (in the context personal finance?), the terms introvert and extrovert. My general view, an introvert relies solely on themselves to gather information, analyse, come up with answers; extroverts rely not only on themselves, but also listen to and take into consideration the work of others. While responsibility for the final decision is obviously mine, I have learned it's a really good idea to listen to others ... so in my view, I am an extrovert.


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## Spidey (May 11, 2009)

One definition that I've heard, is that introverts enjoy being in their own company more often than interacting with other people (not always, just more often). Extroverts enjoy being in the company of others more often than being by themselves. Of course, most people fall into a range and there are times when extroverts can prefer introverted activities and vice-verse.


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## crazyjackcsa (Aug 8, 2010)

How about misanthropes, where do we fall?


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## callyhan (Dec 7, 2010)

crazyjackcsa said:


> How about misanthropes, where do we fall?


That would be "combination or not sure". irate:

The definition that I found interesting was Introverts get their energy from being alone and quiet with their thoughts, while Extroverts gain energy from being involved with others and busy activities.


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## Helianthus (Oct 19, 2010)

I am an introvert, but I am financially reckless.


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## kcowan (Jul 1, 2010)

Being an extrovert, I would expect introverts to be good at analysis and have a hard time making decisions. I have learned to be cautious with investment decisions but it did not come naturally. I will follow my beliefs rather than follow the crowd.


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## Toronto.gal (Jan 8, 2010)

In general, I'm an introvert, but both personalities have advantages & disadvantages.

*The Secret Power Of Introverts*
http://www.forbes.com/sites/jennagoudreau/2012/01/26/the-secret-power-of-introverts/


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## Beaver101 (Nov 14, 2011)

callyhan said:


> A book I've been reading lately "The Intorvert Advantage" has made me think about the differences in temperaments and how they relate to personal finance. I'm a typical left-brain introvert, and ...


. How scientific is this book - is there such as a thing as a typical right-brain introvert? :biggrin: I admit I have not read the book yet but would be interested to.


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## Young&Ambitious (Aug 11, 2010)

Introvert. This seems to be a commend trend here, perhaps there is a link between finance and introversion vs. extroversion.

...or the extroverts talk to people in person about investing etc instead of on an internet forum


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## Sampson (Apr 3, 2009)

+1 Beaver.

Pseudoscience. I think Jungian psychology is respected in the field (I think...), but it is all a bunch of hogwash.


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## andrewf (Mar 1, 2010)

There might be a correlation between introversion and using web fora.


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## callyhan (Dec 7, 2010)

Sampson said:


> +1 Beaver.
> 
> Pseudoscience. I think Jungian psychology is respected in the field (I think...), but it is all a bunch of hogwash.


I don't consider it pseudoscience along the same lines as homeopathy, acupuncture, etc. Do you consider all psychology pseudoscience? I like to think of it more as neuroscience. Especially since it is proven that medications can alter mood and behaviour. Dopamine and other neurotransmitters do have an effect on our temperaments. It is interesting how little is known about brain chemistry actually.

Anyways, I love to read about this kind of stuff. I should have known though that this poll would be skewed though!


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## Sampson (Apr 3, 2009)

The problem with psychology is that it doesn't not amend itself to testing by the Scientific Method.

I don't disagree that there is use in it (unlike other more traditional pseudosciences like astrology), it is more observational-based strategies, but some of Jung's original stuff is pretty hoky. It often reads just like the Astrology section in the newspaper, everyone can find something in their that describes them, because we hope or aspire to be that way.

Let's call it a 'soft science'. With value. (before all the psychologists come out and attack me).


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## Plugging Along (Jan 3, 2011)

I am a very strong extrovert, almost off the charts on one side. My spouse is an introvert, not quite as far off the charts, but still on the more extreme side. Financially, though we are both on similar pages and have the same foundational views towards finance, we both approach it differently. I tend to have to learn from my mistake alot more than him, but generally risks don't phase me, and I tend to recover with upsets much better. He is more detailed, and tends to take on the day to day stuff.

In terms of the 'Jones', it is my spouse that wants all the material things, where I am more practical. I don't know how much being an introvert or extrovert factors into the this.

I have one sibling is even more of an introvert that my spouse, and he is financially very conservative, but very successful, net worth in the low xx,xxx,xxx.00 My other sibling is extroverted, but less so than me, and he is not conservative but even more successful at a younger age, somewhere near the high xx,xxx,xxx.00 possible xxx,xxx,xxx.00

I think these factors may a have a small influence, but there are many other factors that will play in one's financial balance sheet.


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## Cal (Jun 17, 2009)

Read 'the big short'....I think that was the book that had Micheal Burry, definitely an introvert. Interesting read.


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## Mall Guy (Sep 14, 2011)

Cal said:


> Read 'the big short'....I think that was the book that had Micheal Burry, definitely an introvert. Interesting read.


Good read, introvert for sure . . . personally I'm an extrovert during the day, but really don't like people the rest of the time !


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## KaeJS (Sep 28, 2010)

crazyjackcsa said:


> How about misanthropes, where do we fall?


ROFL.

I'm definitely in this camp, but I chose introvert.

I opened my window just before reading this thread. Immediately, I shut the window because the neighbours were outside. Forget that. 

Noise bothers me. Noise of all kinds.

Neighbours, laughing, crying, dogs, birds, lawn mowing, cars, planes, kids, television, people walking, etc. etc.

I like my silence.

You know when you go to the AMC Movie Theatre, and they have that stupid socially responsible commercial before each movie with the baby crying, cell phone ringing, people talking, etc. and then it says "Please don't spoil the movie by adding your own soundtrack."

^ KaeJS' Worst Nightmare. :hopelessness::hopelessness::hopelessness:


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## crazyjackcsa (Aug 8, 2010)

So did I KaeJS. I was talking to a coworker and he described his weekend. "Went over to the neighbour's place and hung out in the garage and had a couple of beers one night. Then the next day we spent with the people across the street. Chewed the fat for a while with the guy across the back fence, and had some neighbours over for a swim in the pool."

My face must have contorted because he asked me what was wrong.

"You just described hell," I said.


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## dogcom (May 23, 2009)

I am an Introvert and have absolutely no interest in keeping up with the Jones. I will say this though when I fix my house I am very concerned about doing the things you don't see right even if it costs me more money. I am very concerned that the right products are used and used right so the house doesn't leak or that the structure is absolutely sound. Most people and these are probably the Extroverts are probably more concerned with how everything looks and don't consider what is behind it all very much.


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## nathan79 (Feb 21, 2011)

I tested as 100% introverted on the Myers-Briggs indicator.

Neighbours annoy the crap of out me as well. I don't think I've said a word to any of them in months.


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## donald (Apr 18, 2011)

I'm Both,but i lean towards extrovert.I like my alone time but i go stir crazy if i have to much.I actually hate communicating through print(introvert style) (i'm on this forum to learn obviously,but gotta admit i find it next to immpossiable to develop rapport)I'm guessing forums are def a introvert activity,judging by the results!I've always found it funny how 2 people can talk over the internet without knowing zilch about each other(other than what they print) and actually develop a semi-realtionship without the substance of "real life" and in person-ie communicating in a extrovert way-social cues,body language,humour,face to face communicating and "knowing" and "feeling" a person in real life context-It's different to me.


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## Spidey (May 11, 2009)

One thing that always annoys me in job interviews is the standard question about being a "team player". Not all jobs are "team jobs" and many good workers prefer jobs that have as little reliance on others as possible. Yet they seem compelled to ask the question anyway.


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## Toronto.gal (Jan 8, 2010)

Spidey said:


> 1. Not all jobs are "team jobs"...Yet they seem compelled to ask the question anyway.
> 2. and many good workers prefer jobs that have as little reliance on others as possible.


1. It's a psychological/personality type question to figure out your emotional intelligence & whether you can work well with various personalities.
2. That would be me; I so hate to check other people's work [as it just raises my blood pressure when I see the constant mistakes], so I rather do it all myself, which saves big time too!


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## Nemo2 (Mar 1, 2012)

Mall Guy said:


> personally I'm an extrovert during the day, but really don't like people the rest of the time !


Back when I was, gasp, still employed, (sales and sales support), I recall receiving an internal company call, (we couldn't differentiate internal/external back then), and the caller, a woman, exclaimed how nice it was to call me because I was always so happy & positive when I answered the phone.

My response? "I'm _working_."


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## kcowan (Jul 1, 2010)

Nemo2 said:


> Back when ...? "I'm _working_."


DW always asks if I need company, and I reply: "What for?"

I can handle it but can also do without it. Especially with these forums for personal interaction.


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## Square Root (Jan 30, 2010)

i think this is a topic used to sell books. Do you think there are only 2 types of people in this world? Doubt it. Also only 2 types of investors, good and not so good. Doubt that too. Sounds a bit like astrology and investing.


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## LondonHomes (Dec 29, 2010)

I really don't think that the Introvert vs Extrovert trait impacts your personal finances to a significant amount since according to Myers-Briggs it's really how interacting with people either gives you energy or drains you. The more important traits for investing would belong in the thinking / feeling axis ie are you more inclined to make an investment because it feels right or do you do the research to make sure it's a good investment.


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## avrex (Nov 14, 2010)

Look at the poll results.
By far, the majority of people on this forum are Introverts.

However, Extroverts make up between 60 to 70 percent of society, according to Dr. Ed Diener from the University of Illinois.

This would lead me to believe that there is a correlation between Introverts and "how they look at" / "their interest in" personal finance.

Perhaps Introverts are better at living below their means. 
Perhaps Introverts expenses are lower because they prefer activities, which would be more introspective in nature and therefore cheaper.


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## Sampson (Apr 3, 2009)

Or it could just mean that the poll reflects peoples personal perception of themselves and not an 'objective' assessment based on extensive questionnaires.

Even if you were to fill out the Myer-Briggs' assessment, it is difficult if not impossible to separate what you perceive of yourself (i.e. how you would like to respond to a situation) and what you would actually do in a particular situation.


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## kcowan (Jul 1, 2010)

That is why we would complete 360 surveys where our responses were compared to superiors, peers and subordinates so we could not delude ourselves.


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## OhGreatGuru (May 24, 2009)

I haven't read the book, but I don't think the normal meaning of introvert/extrovert would be relevant to one's investor profile. Sounds like the author, for want of inventing new words, has re-defined old ones to try to categorize people into 2 investor types.


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## OhGreatGuru (May 24, 2009)

rikk said:


> ...My general view, an introvert relies solely on themselves to gather information, analyse, come up with answers; extroverts rely not only on themselves, but also listen to and take into consideration the work of others. ....


Unless the introvert is doing his own bottom-up analysis of a company's financials, he/she is still relying on information from others. Only they are gathering data from published information & opinion, not from personal discussions. So I don't see the difference in terms of self-reliance. You can argue about which information sources are more reliable, but both groups are relying on external opinions and analyses.


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## Plugging Along (Jan 3, 2011)

I think there is a difference in definitions regarding an introvert vs extrovert. The definitions in the personality profiles such Myer Briggs really is if you get your energy from being alone vs with people. Introverts tend to find it draining to be with people for a longer period of time, and need to recharge by alone time. Extroverts get thrive being in groups. 

In terms of processing information whether it's sensing or Intuitive is really detailed vs bigger picture on how you drill it down. 

Extrovert and introverts are just one small part of personality, and it's oversimplified to say that one group is better at personal finance than other. 

For example, accountants, finace people, engineers, IT people tend to be ISTJ, and there is a large number of them here. Entrepenuers are often ENTJ, and there are some here too, both groups are analytical groups. 


In terms of how you are perceived vs what is reality, as kowan said, there are 360 feedbacks. I've done alot of them, and have alot of them done on me, and have found that my preception of myself is close to what others think of me.


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## Spidey (May 11, 2009)

I would like to know what data this Dr. Diener uses to make his claim that extroverts makeup 60 to 70% of society. If anything, going by anecdotal observation, I would flip those numbers around. I suppose it all boils down to how he has defined introverts or extroverts.


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## Rusty O'Toole (Feb 1, 2012)

You may think there are a lot of extroverts because you see them wherever you go. That is because they are always out in public while the introverts are usually at home. Also, introverts are easy to miss.


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## Spidey (May 11, 2009)

Rusty O'Toole said:


> You may think there are a lot of extroverts because you see them wherever you go. That is because they are always out in public while the introverts are usually at home. Also, introverts are easy to miss.


No. I think there are much more introverts. If I go by working situations, hockey team parents, etc. I would say introverts make up about 60% of the population.


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## callyhan (Dec 7, 2010)

OhGreatGuru said:


> I haven't read the book, but I don't think the normal meaning of introvert/extrovert would be relevant to one's investor profile. Sounds like the author, for want of inventing new words, has re-defined old ones to try to categorize people into 2 investor types.


Sorry should have mentioned, the book has nothing to do with investing or personal finances. It's just a book I've been reading for personal interest. I just found myself wondering about the finances and introverted personality link after I put the book down.

I had a house guest over all weekend and then dinner guests last night. The weekend totally zapped me, I could use another day to recharge.


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## avrex (Nov 14, 2010)

Here's another angle, in regards to working longer and delaying retirement.

1. We've all read the articles, that state that many boomers are going to have work longer. Most likely, it's because they haven't saved enough.

2. However, there are also boomers that will continue to work, not because they have to, but because they want to.
The major reason these people want to, is because they love their work.
But another *minor* reason, that I submit to you, is because they are *Extroverts*, and they enjoy/require daily interactions with others.


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## steve41 (Apr 18, 2009)

I am definitely not an extrovert. I have chosen to live on a small (pop 800) island, and while I interact with my user base, occasionally a family member by phone, and with the locals at the pub several times a week.... I dearly enjoy my peace and quiet.

As far as things financial, I find investing painfully boring, while I enjoy programming immensely.

My approach to investments is along the line of...."If this bozo (investment guru/blogger) is so smart, why is he wasting his time blogging about it, rather than sipping champagne on the porch of his villa in the south of France." 

I enjoy the mathematics, the programming, the modest income it provides, and the satisfaction derived from running a self-run, one man enterprise. A 70 year old uber-introvert, and proud of it.


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## riseofamillionaire (Feb 23, 2012)

callyhan said:


> A book I've been reading lately "The Intorvert Advantage" has made me think about the differences in temperaments and how they relate to personal finance. I'm a typical left-brain introvert, and I think it's made me more responsible towards my own finances and planning my future. I'd much rather be close with a small group of people with a similar lifestyle as mine, and have little desire to try and "keep up with the Jones's" especially if I have never met them and don't interact with them in everyday life. This book has implied that for every introvert, there are three extroverts in the world. I wonder if being extroverted has any correlation to taking on debt or living within one's means.
> 
> I'd love to hear everyone's opinion on this and whether you think you are an introvert or extrovert?


Great post topic. I'm in this boat. 

So far 76% introverts, interesting.


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## Plugging Along (Jan 3, 2011)

Depending on what info source you use, introverts are said to make up 52-59% of the population in north America. Different numbers in other countries. 

Extroverts are noticed more, well because they are extroverted. Introverts are more likely on line than extroverts. I am here because I need to be at home with the kids when they are asleep otherwise I would be out.


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## marymouse (Jun 30, 2011)

I wonder if there are more introverts on forums, because they are on their computers more...


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