4 financial roadblocks and how to break through them to jumpstart your success now
Money Girl
238 MG How to Stop Procrastinating Money Management
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When you understand why you're not taking the initiative to improve your finances, it's easier to break through roadblocks that are holding you back from financial success. I'll cover four of the most common reasons why you procrastinate making smart money moves. Now back to the four reasons why you might be procrastinating better money management. Reason number one, you think it's too difficult. When you think about doing something that you've been procrastinating, like signing up for the 401K at work, switching to a better bank account, or refinancing alone, what typically comes to mind? In most cases, if you haven't already completed the task, it's probably because you think doing it will be too time consuming, confusing, or emotionally painful. We tend to fixate on undesirable expectations more than a task's potential rewards. I can't tell you that every smart money move is quick, easier, painless. But I can tell you that it's always worth your time and energy. One motivator that works for me is to consider the opportunity cost of doing something on my financial to-do list. Opportunity cost is what you lose by not doing something. For instance, if you haven't started saving for retirement yet, consider this. If you contribute just $100 a month and get a 7% average return for 30 years, by not getting started, you're saying no to earnings of over $85,000. That's a heck of an opportunity cost. Even if it takes you two hours to complete the account paperwork, each hour puts over $40,000 in your portfolio to spend during retirement. The reality is that opening up a retirement account should take you less than a half hour not to mention that you'll probably increase contributions over time, giving you a much bigger nest egg than my example. In other words, taking a half hour to set up your retirement account or to do many other financial tasks could easily turn out to be the most profitable 30 minutes of your entire life. 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The second reason we fail to make smart money moves is if we don't know how or where to start. Maybe you just don't have a good local or online resource or maybe you have too many resources and are paralyzed by the variety of choices. Make a commitment to spend just 15 minutes researching solutions, contacting a financial professional or sending an email to a knowledgeable friend or co-worker. Just doing something small can set you in motion to accomplish the bigger financial task at hand. Whether you need to raise your credit score, find out how to pay off debt, or learn about real estate. Money Girl has a huge archive of articles, podcasts, and tips to help you. Just use the search box at quickandertietips.com. I get lots of questions from show listeners who are unsure about how to start building their credit. So I created a free multimedia resource called the Credit Score Survival Kit. It's jam-packed with helpful information and even includes a video tutorial where you can watch me check my own credit report step by step. The Credit Score Survival Kit is a free gift right now at smartmoves2growrich.com. Reason number three, you don't have goals. For some people, not having specific financial goals is the reason they're not accomplishing more with their money. If you don't have an end game, it's impossible to make financial decisions with confidence and conviction. For instance, most people know they should say for the future, but they don't know how much they need to retire or to send their kids to college. Or they know they should have life insurance, but aren't sure how much is enough. These small sticking points can put enough drag on your momentum to prevent you from moving forward. I have an easy answer for these types of "how much" questions. Use free online financial calculators. Just enter search terms like retirement calculator, college calculator, or life insurance calculator into Google and find resources that will give you a ballpark estimate. I use calculators over at dinkytown.com and bankrate.com all the time. You can always adjust the amount of your retirement contributions or life insurance benefits later on, but the important thing is to get those products in place and funded now. Reason number four, you're avoiding a money mess. Have a few skeletons in your financial closet. Avoiding them is a bad strategy because they only multiply when you ignore them. Start by making a list of what you need to improve, like getting out of credit card debt. Then jot down a few solutions for each issue. For instance, for credit card debt, focus on the worst offender, which is the card with the highest interest rate. Make a commitment to stop all spending on the card, cut back on the luxuries in your life, and make more than the minimum payment each month. That's because the longer you make minimum payments, the more interest you fork over to the credit card company unless you get to keep for yourself. To quit procrastinating your smart money moves, the key is to stop thinking and start doing. Even doing something small that moves you in the right direction is powerful. It's better to take action and make decisions than to wait for a perfect plan or solution. Plus, the longer you think about a task, the more you can blow it out of proportion. So take responsibility for your financial life by getting focused, facing your fears, and taking the first small step to better money management. I'm here to support you, so shoot me an email at money@quickandertietips.com and let me know what type of financial task you've been putting off. You'll find links to connect with me on the MoneyGirl page at quickandertietips.com. By the way, if you're not subscribed to the podcast on iTunes, that's where most people get the show. It's free, easy, and the most convenient way to get each new weekly episode. For tips to keep every aspect of your financial life in order, grab a copy of MoneyGirl's Smart Moves to Grow Rich. It's available at your favorite bookstore in print or as an e-book. You can even read two chapters first by getting a free download at smartmoves2growrich.com. Another quick and dirty tips book you shouldn't miss is Nutrition Diva's Grocery Store Survival Guide. If you're tired of trying to figure out whether there are healthier options to process foods, Monica Rinegle shares which type of milk, cereals, and meats are best, so food shopping is that much easier. Visit your favorite e-tailer and download the e-book to your tablet or smartphone and take it with you to the supermarket today. It was previously published as part of Nutrition Diva's Secrets for a Healthy Diet. I'm glad you're listening. Chaching. Mmm. That's all for now. Courtesy of MoneyGirl. You're gone to a richer life. Hey, I'm Yara Chihidi and I'm the host of The Optimist Project. This is the podcast that asks what gives you hope. Each week, I sit down with change makers you may or may not know from comedy, music, academia, and more to uncover what inspires them to create a better tomorrow. Join us as we find out ways that we can cultivate optimism in our own lives. You can find The Optimist Project wherever you get your podcasts. Don't forget to follow the show so you never miss an episode. At Capella University, learning the right skills could make a difference. That's why our business programs teach you relevant skills you can take from the course room to the workplace. A different future is closer than you think, with Capella University. more at kappella.edu. [BLANK_AUDIO]