I’ve been thinking a lot about introversion and extroversion lately, especially with this awesome post from Buzzfeed sharing the 31 unmistakable signs that you are an introvert. I know that I do not appear like an introvert because I can be loud at times and depending on the situation or scenario, I’m not afraid to speak my mind.
So why is being an introvert good for your net worth?
It might be helpful to start defining what an introvert is.
According to Wikipedia, introversion (and its counterpart, extroversion) were first discussed by psychologist Carl Jung and is defined as a personality type that exhibits more reserved and solitary behaviour. Shyness is the anxiety associated with speaking or being social, whereas introversion is a preference for quieter spaces. For example, extroverts are energized from social stimulation and introverts are energized when they are alone and solitary. Introverts prefer to speak to people one on one rather than in a group. Introverts tend not to like small talk.
I love my alone time and when my friends start to want to hang out with me too much (e.g. more than a few times a week or even more than once a week) I tend to panic because that means I won’t get my alone/ creativity time. I don’t like big parties but might be able to buck it up for a few hours to be social. However, on the inside I would prefer to be tattoo’d on my ankle than go to a big party to socialize with people. I prefer small dinners with friends rather than go to a loud bar.
Introverts make up about 1/3 to 1/2 of the population.
Well, now that we got the definition out of the way, lets talk about why being an introvert may be good for your net worth:
Introverts Make Better Investors
According to Reuters, introverts make better investors when compared to extroverts. Extroverts thrive on the dopamine rush and have a tendency to make impulsive decisions to seek the large gains/ large wins rather than the slow and steady route with lets say… blue chip dividend stocks. Introverts tend to buy and hold whereas extroverts buy and sell, buy and sell. Conversely, introverts can also be too meticulous with their calculations and they may miss key opportunities to take action, for example,
One famous introvert who has done very well with his investments is Warren Buffett. He is a cautious and calculated investor and very successful with his investing, but at the same time he is not loud or gregarious and does not like public speaking.
Introverts stay in More= Spend Less Money
Another reason why introverts have a better net worth than extroverts is that introverts like to stay in more or retreat into solitude. Staying at home and reading a book, or making dinner for a few friends is an introvert’s idea of a fantastic weekend because they can recharge.
In fact, I like to go out maybe 3 times a week (going out ranges from meeting a friend for a dog park jaunt or having dinner with a friend to sometimes going to parties) and the other time I really enjoy my alone time. If I have something planned every day of the week, I feel really tired and drained. If I get an evening to myself where I can do my own thing (like for example, writing this post), I am very happy indeed.
Instead of spending hundreds of dollars at bars, hundreds of dollars clubbing, or spending a lot of money at concerts, or doing high adrenalin activities like skydiving and bungee jumping, introverts may spend their money going on hikes or retreating to a peaceful and quiet place near the forest.
Managers should Recognize How to Maximize Introverts at Work
Because we live in an extroverted world where leadership, sharing ideas, meetings, and collaborating are rewarded, introverts may need to adapt to these values. One way in which managers can help is by talking to the introvert before meetings and asking for their opinion 1:1. The introvert communicates best in small groups or on one on one. Another way is to ensure that there is time to catch up and work on things that don’t involve chatter with colleagues.
Readers, are you an introvert or an extrovert?