According to a study done by Capital One in 2019, many Americans are stressed out about their personal finances. The study found:
- 77% of participants reported feeling anxious about their financial situation
- 58% feeling that finances control their lives
- 43% feel fatigued about their finances.
What money mistakes are people making that trigger these feelings? If I asked 10 people “what is your biggest money mistake?” what do you think they would answer? Here is a list of the most common mistakes from Investopedia:
- Unnecessary spending
- Never-ending payments
- Living on borrowed money
- Buying a new car
- Spending too much on a house
- Misusing home equity
- Living paycheck to paycheck
- Not investing in retirement
- Paying off debt with savings
- Not having a plan
How about you? What money mistakes have you made in the past? What money mistakes are you still making?
Behaviors change slowly. My suggestion is to identify one of the money mistakes you’re making right now and commit to changing it right now. In the next 48 hours, take action to change this one behavior and stick with it
For example, if you have never-ending payments because you use your credit cards and don’t pay off the balances, make a list of your credit cards and the amount owed. Write the information on a piece of paper so you KNOW what the balances are. Then, choose the credit card with the lowest balance and commit to paying it off as quickly as you can. Once that one is paid off, start on the next highest balance and keep following this approach until you are no longer making this money mistake.
Or, if you don’t have a financial plan, use free on-line resources to create a financial plan. If you want help to create a plan, locate a fee-only financial advisor and make an appointment this week.
We’ve all made money mistakes in the past (even financial advisors have made money mistakes!). That’s okay. Learn from your mistakes and start taking positive action now.