The top reasons people fail with money
Link: The top reasons people fail with money
Aggregated and Condensed version of the List follows below:
Why People Fail With Money
Six financial planners and portfolio managers list their top reasons why people struggle with their finances.
- Not having or updating/reviewing a financial plan, not paying yourself first, starting too late to save and invest, not setting up a sufficient automatic savings plan and then leaving it to run, hoping things will take care of themselves, spending first and trusting there will be money left to save (10)
- Divorce, impulsively changing course on your finances, getting too emotional, following the herd on fear-greed market swings (4)
- Reaching for yield and risking capital plus taking too much risk early on; relying on get-rich-quick investment strategies (2)
- Big house, big car, ‘essentials’ like four cellphones per household, over-enjoying vacations and toys (2)
- Going into debt early in life (ie. poor investment strategy from age 20 to 40), spending the rest of your life trying to catch up (2)
- Not minimizing or avoiding unnecessary fees across your banking, investing, and borrowing; investments over/under diversified, not monitored or rebalanced; use of high-cost mutual funds (2)
- Suboptimal education and skill set; being too intimidated to ask questions about money (2)
- Not having sufficient insurance or savings for sudden death or life surprises (2)
- Retiring too early with not enough resources, having large debt payments in later life or retirement (2)
- Judging affordability by what friends seem to be able to afford
Please Note: I might have miscounted when taking 30 bullet points and making 10 categories. I think I’m short by 1 when I did a Check-Sum 🙁