For me personally, characterization is the hardest and also the most entertaining part of writing a story. Your main character's personality, background, likes, dislikes, family - these all affect what happens throughout the plot. The problem with characterization is that most people do too much or not enough.
For example: Take Writer # 1 who fills out ten thousand character charts per day until he knows every single detail about his character - from what he eats for breakfast to the name of his great-great-grandmother to the shade of paint on the walls of his bedroom. Writer # 1 now has a character who is very three-dimensional, very realistic, and probably very boring. Character charts can be incredibly helpful, but they can also take the focus off your character's soul and shine the spotlight on less important details.
Writer # 2 is the anti-character-charter; this is the person who starts writing the story with only a vague idea of a redheaded boy lost in the woods. He didn't take the time to know his character, so the said redheaded boy has no personality, no real history, and no real depth. Both writers took very different approaches and still wound up with the same problem.
It's hard to balance between two much detail and not enough, and I've gone overboard on both. But eventually I started to figure out some very simple ways to develop my characters without outlining their ancestry.
BECOME A STALKER
Or, in other words, watch people. Sit on a bench in the park and observe everyone who comes your way. Depending on what kind of person you are, you'll see little things that reveal details about who they are - the clothes they wear, the way they walk, the pet they're carrying. And the more you watch these real people, the more you will get ideas for fictional people. Strange, but true.
LISTEN TO MUSIC
All kinds of music. Music is an art form, and like all art, it is subjective. Your friend might love the Lord of the Rings soundtrack, but you are obsessed with Linkin Park. Art is a profoundly personal part of people's lives. The more you immerse yourself in the personal side of it, in other people's perspectives and opinions, the more you will begin to form pictures in your mind of your characters' opinions. Music also deals with a lot of emotion, a lot of angst and joy and sorrow and confusion - and emotion is a great place to get ideas.
WATCH MOVIES
Like music, movies and television are all about preference. Your preferences will differ from others', and differing opinions can lead to some interesting conversations about the ideas and emotions behind those opinions. So go have a movie night with your best friend and quiz her about WHY she hates August Rush so much. Therein lies the seeds of a new character.
TALK TO PEOPLE
Your characters may be fictional, but they still have to be real. The best way to create a real character is to talk with real people. And I don't mean your best friend in this case. I mean you strike up a conversation with the homeless man on the street, with the waitress at Pizza Hut, with the guy sitting next to you in geometry class. People have stories to tell and lives to live, and it can be fascinating and inspiring to listen to them. You may just find yourself scribbling notes the second you get home.
BE THE BALL
Or, put yourself in your character's shoes. Try to think like them. Imagine yourself in their position. When you order your food in a restaurant, ask yourself what your character thinks of enchiladas or lasagna, and then wait for your subconscious to answer. It sounds crazy, but incorporating character development into your everyday life sometimes works much better than outlining. The only real problem occurs when your main character, like mine, is a complete butthead, and your boyfriend has to inform you to "stop acting like Marc today."
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