Your Weekly Dose of Financial Wisdom 9/4/24

Many people today carry a deep mistrust of the financial system. It's understandable—after all, the headlines are often filled with stories of corporate greed, scandals, and economic inequality. It's no wonder so many people think, "I’m better off managing my money on my own." But here's the catch: most of us are making money decisions based on habits we’ve developed over years—habits we didn’t necessarily choose and haven’t taken the time to break down and understand. We often believe we can manage our finances based on our own instincts, but for most, this "DIY" approach to money doesn’t account for the reality of our own financial education, or lack thereof. When people make decisions about money, it's not just about numbers or logic. There are emotional and behavioral influences at play, often carried from our childhood or picked up from social influences around us. Our parents, peers, and even flashy influencers with expensive lifestyles can shape our understanding of money—sometimes for the worse.

The Influence of Bad Habits and Social Media

In today’s world, we are constantly bombarded with images of what financial success should look like—fancy cars, luxury homes, designer clothes. It can be hard not to feel the pressure to keep up, and for many, that means spending money they don’t really have on things they don’t really need. These influences shape our relationship with money, often without us even realizing it. Yet, we continue to fall into the same patterns, believing that eventually, we’ll just figure it out on our own. But habits are hard to break. If we go 10, 20, or even 30 years with the same mindset and behaviors around money, what makes us think that suddenly, when we’re approaching retirement, we’ll be able to flip a switch and start managing our finances differently? It’s highly unlikely. The truth is, the longer we stick with bad financial habits, the harder it becomes to change them, even when we’re faced with important life decisions, like saving for retirement or managing an inheritance.

Start Now: Building Better Financial Habits

So, what’s the solution? Start now. Get a solid footing while you're still young enough to make real changes. If you don’t take the time to learn better financial habits today, you risk letting your money manage you rather than the other way around. You have a choice to make—either take control of your financial future or continue letting old habits, past influences, and external pressures dictate your money decisions. It might sound like a lecture, but the truth is, we all need a little push sometimes. Yes, life is uncertain—nobody knows exactly what the future holds. The "YOLO" mentality (You Only Live Once) has some merit, but it's precisely because life is short that we should strive to create a stable and secure financial future for ourselves. Living in the moment doesn’t mean ignoring your financial future; it means making sure you’re setting yourself up for the best possible outcome.

Carve Out Your Own Financial Path

There is no one-size-fits-all approach to money. The flashy lifestyles you see online are not realistic for most people, and they certainly aren’t the key to long-term financial success. What’s more important is carving out your own values around money—understanding your motivations, your goals, and your needs. This requires self-reflection and, often, guidance. It’s rare for someone to successfully coach themselves through their financial journey. That’s why it’s so important to find a mentor, a confidant, or a financial expert who can help you work through your habits and figure out what’s truly important to you. Financial literacy is crucial, but so is having someone who can hold you accountable and help you break free from the behaviors that aren’t serving you well.

The Time Is Now

Taking the initiative today to address your financial habits isn’t just about improving your relationship with money—it’s about building wealth and creating a secure future for yourself and your family. Managing your money effectively is a choice, and it's one you can make right now. The first step is acknowledging that bad habits exist. The second step is making a commitment to change them. With the right guidance, tools, and mindset, you can take control of your financial future and create the life you’ve always envisioned—without letting your money control you. So, why wait? Start building better habits today, and give yourself the opportunity to live the life you truly want.