5 Money Stress Pitfalls and How to Avoid Them

Hi Friend,

Early in my marriage, we thought we had everything under control. We had a few dollars in the bank,? and were excited about our new independence. However, it didn't take long for the cracks to show. I remember one evening. I had received a credit card bill, and it was much higher than I had expected. My stomach churned as I realized I had no idea how I was going to pay it off.

The stress began to seep into other areas of my life. I started arguing with my wife over small expenses, feeling anxious every time I swiped my card, and even doubting my own abilities. I was caught in a cycle of money missteps and self-doubt, and I didn't know how to break free.

One night, after yet another sleepless bout of worrying, I decided enough was enough. We needed to take control of our finances. I began educating myself about personal finance, setting realistic goals, and creating a budget that worked for us. Slowly but surely, we started to see improvements. The arguments with my wife lessened, my anxiety reduced, and I felt a renewed sense of confidence.

That experience taught me valuable lessons about the pitfalls of money stress and how to overcome them. Now, as a money coach, I want to share these insights with you. Here are the five common money stress pitfalls I encountered and how you can avoid them.

1. Relationship Difficulties

Money problems can strain even the best relationships. Imagine a couple where one person loves to save, and the other loves to spend. Without clear communication, this difference can lead to constant arguments.

How to Avoid It: Have open, honest talks about your finances. Set common money goals and create a budget together. This way, you’re both on the same page and working towards the same future.

2. Anxiety

Worrying about bills, debt, or not having enough savings can cause sleepless nights and constant stress. For instance, someone might constantly check their bank balance, feeling anxious every time they spend money.

How to Avoid It: Create a spending plan. Knowing exactly where your money is going and having a plan for emergencies can ease anxiety. Start with a small emergency fund and gradually build it up to cover three to six months of expenses.

3. Self-Sabotage

Sometimes, we’re our own worst enemies. If you keep spending money on things you don’t need or avoiding saving, you’re sabotaging your financial future. For example, buying things you don’t need only because they are on sale.

How to Avoid It: Be mindful of your spending habits. Before making a purchase, ask yourself if it’s something you truly need or just want. Create a budget and stick to it, and if you slip up, don’t be too hard on yourself or your spouse—just get back on track.

4. Avoidance

Ignoring your finances won’t make the problems go away. If you avoid opening bills or checking your bank account because it’s too stressful, you’re only making things worse. For instance, letting a spouse or family member take care of all money decisions.

How to Avoid It: Face your finances head-on. Set aside a specific time each week to review your finances. Review for no more than15 minutes. Use this time to pay bills, check your budget, and make any necessary adjustments. It might be uncomfortable at first, but it will get easier with time.

5. Financial Literacy Neglect

Not understanding basic money concepts can lead to poor decision-making. For instance, believing that you are a better investor than average can lead to making high risk investments.

How to Avoid It: Take time to educate yourself about personal finance. There are many free resources available online, such as blogs, podcasts, and courses. Start with the basics, like budgeting, saving, and understanding credit. The more you know, the better decisions you can make.

Conclusion

Money stress is something we all face, but by recognizing these pitfalls and taking steps to avoid them, you can build a more secure and peaceful financial future. Remember, it’s all about taking small, manageable steps and being kind to yourself along the way. Celebrate each small step!

??What I Have Learned

“A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life.” – Suze Orman

??Guest Author

Picture this: the sun on your face, the sand between your toes, or the whispering winds through lush mountain forests. The prospect of a vacation is undoubtedly exciting. But what if the glow of your getaway fades when you open your mailbox a few weeks later to find a daunting credit card bill? My friend Dave Jacobson believes in financially stress-free vacations and he shares how you can do it in this blog. Want A Stress-Free Vacation? Use This Vacation Planning Guide

??Knock out these money-related tasks now to help you finish the month strong.?

• June is National Insurance Month and is a great time to think about your risk.
• Mid year checkup - Check your budget. Are you sticking to your targets? Make adjustments if priorities have shifted.
• Evaluate your insurance. Review your coverage levels including life, health, disability, auto & property.
• Review your goals. Make adjustments if priorities have shifted.
• Celebrate any achievement(s) obtained in the 2nd quarter.

??Money IQ - Your chance to gauge your money knowledge

IQ Question - What’s the maximum debt-to-income ratio a person can have and still qualify for most mortgages?

?27%

?43%

?50%

See comments section for answer

??It’s FREE!

Thrilled to announce the launch of the Money Mavericks Video Game for teens!?

Money Maverick is an interactive video game to impart impactful lessons on mindset, habits, and behaviors crucial for building wealth and creating happiness.

One of the things that sets this game apart is 66 real-world scenarios, offering a hands-on learning experience to better equip teens for success in the real world. After all, the best learning is from doing.

But here's the kicker –? I'm giving the game away for free!

Money Maverick Video Game

??Testimonial

“It was a very productive session & I’m very happy with the progress so far. I got more out of our meeting than expected.? As I shared with you I'm very insecure regarding my finances and so our sessions are extremely therapeutic. I felt as if for the first time I was being heard. I feel much more confident now? about resolving my challenges versus hiding.” M.L.

??You don't have to keep stressing. If deep down you know that you are not happy with your money, book a call today.?

FREE 30-minute "Squash Your Stress"?

Thanks for reading this far.

Thanks for your time and kindness .

Stay wise and healthy. Celebrate.

??See you June 15th!

* If you like this newsletter and want to support it, there are 2 WAYS THIS WEEK! PICK ONE right now before you forget:

1. Forward this newsletter to a friend with an invitation to subscribe.

2. Leave a comment.?