Contributed by Destiny H.
We all make mistakes with our money, but some are not so obvious. Are you committing any of these money-wasting slip-ups?
Lack of responsibility. If you leave all of the financial planning to your partner, you could get stuck. I know plenty of people who did that and, when the relationship ended, they had no idea where they were financially. With credit cards, mortgages and car notes in their partners’ names, they were left with no credit history and had to start all over again. Pitch in and become involved with what is happening with your household financial matters.
Guilt. Guilt can override our way of thinking about money. We make many mistakes because we feel guilty. We stay in jobs that don’t pay us well because we feel guilty about leaving our colleagues. We lend people money that we might not have out of guilt and our need for their approval. Don’t sacrifice your financial future because you are worried that people might not like you or approve of your decision.
Empathy. Sometimes we help people because we feel sorry for what they are going through even though we know the money may just go down the drain. Remember, they got themselves into their bad situation by making bad decisions. I have done this in the past and it cost me my friendship when I never got my money back. Now, I listen to what they have to say, empathize with their situation and, if I think it might be helpful, I direct them to a good financial planner.
Fear of being judged. After loaning money to others, often, we don’t ask for it back when we might need it ourselves. Why? Because we are afraid of looking mean, unkind or making people feel bad. To avoid this emotional trap, set up a contract ahead of time with a payment plan.
What emotions have contributed to your making poor financial decisions? We invite you to share your thoughts in the comment box below.