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Ever hear someone say “I am my
own worst enemy”? This certainly can apply when talking about money. Here
are 6 negative behaviors that can keep you from doing well financially.
*1 - Allowing past experiences to
influence current behavior.
*2 - Making decisions based on
peer pressure or someone else’s opinion.
*3 - Using money emotionally.
*4 - Not taking precautionary
measures to avoid future financial trouble.
*5 - Staying stuck in a financial
rut.
*6 - Making choices based on
convenience.
 *Negative Behavior 1 -
Allowing past experiences to influence current behavior.
As a child my family lived in a
120 year old house that regularly demanded repairs. It was embarrassing to
have 9 buckets out to catch water leaking through the roof because we
couldn’t afford repairs. Because of that past experience I tried to make
my first house perfect. I “cheated” by borrowing in order to look like I
had lots of money to spend on home improvements which only led to bigger
problems with debt.
You can’t drive forward while
staring in the rearview mirror. Many of us have gone through negative
emotional experiences with money and it can turn you off to dealing with
current financial problems or accepting our
current financial reality. Ignoring
financial matters or mishandling them based on prior beliefs about money
can make your financial situation much worse.
 *Negative Behavior 2 - Making
decisions based on peer pressure or someone else’s opinion.
Everyone at the bell factory
would go out for lunch each day which made Jeremy feel compelled to go as
well. Unfortunately, the $7.00 he was spending each day for lunch added up
to even more than his monthly phone/cable/and internet bill. Giving into
peer pressure to buy lunch instead of packing one was making paying his
bills very difficult.
Just because everyone else is
doing something doesn’t mean it is the right or best thing to do.
Unfortunately, many people fall into a “herd mentality” and when one of
them heads in a particular direction everyone else follows, regardless of
the consequences. In Jeremy’s case he gave into peer pressure to stick
with the group during lunch, and that meant going to a restaurant (go to
park) and paying a lot more than he really could afford for food.
When was there a time you gave
into peer pressure and it cost you money?
 *Negative Behavior 3 – Using
money emotionally.
Do you make smarter choices
financially and in general when you are filled with desire, rage, or
depression, or when you feel calm, satisfied, and relaxed? Taking a break
from an emotionally charged situation can help restore logic into spending
decisions.
Some examples of emotional uses
of money:
“Even though Jack’s credit
history is poor, I really like him. Therefore, I co-signed his loan”
“I planned on spending $5,000 for
a used car, but that salesman is right. I would look awesome in the
$30,000.00 sports car.”
“I want to
spend more on
Christmas gifts in order to show my love.”
 *Negative Behavior 4 - Not
taking precautionary measures to avoid future financial trouble.
Why do people avoid preparing for
inevitable financial problems? A lot of times it is because we feel short
on time, energy, and money. However, too many people learn the hard way
that the time, energy, and money you lose in an emergency far outweigh the
preparation costs.
Examples:
Effort: Cleaning leaves out of
the gutters is hard work, but backed up gutters will cause costly water
damage to the house.
Money: Sure, health insurance is
expensive, but not having it can be even more expensive. While you may be
healthy now, accidents do happen.
Time: Not recording your
expenditures in your checkbook, because you don’t have time, could lead to
spending more than you actually have in your account.
Take time now and identify what
threats there are to your financial well being. Any of these examples
could threaten your financial well being if not tended to: employment
stability, your health, car maintenance, home repairs, appropriate
insurance, family stability. What threats to your finances do you see on
the horizon?
 *Negative Behavior 5 – Staying
stuck in a financial rut.
What are some of the things you
may be doing every day, even without thinking, that could be holding you
back? I once realized that I had trained my daughter to expect gifts every
time we went
grocery shopping because I would automatically hand over
money for the toy and gumball machines on the way out. That behavior
wasn’t helping either of us.
What is the definition of
insanity? Doing the same negative behaviors over and over again.
You are stuck in a rut when the
things you normally do aren’t moving your financial goals forward. Even
worse, like a truck stuck in mud, the more you spin the tires the deeper
you sink in. There are even times that you aren’t consciously doing
something, but that inaction is also a culprit of your lack of progress.
Ask yourself “What needs to change?”.
 *Negative Behavior 6 - Making
choices based on convenience.
What costs can occur by living
with or marrying the wrong person just because it is convenient?
What costs can occur working for
the wrong company just because it is convenient?
How much more does it cost to buy
breakfast at the convenience store versus eating at home?
Does it cost more to get your oil
changed at Jiffy Lube or Joe’s Garage, for example?
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