Podcast Episode 370: Do You Have These Bad Financial Habits?

When you think about the bad habits that could negatively impact your finances, things like credit card debt and overspending your budget come to mind. Those are obvious ones, but we want to shine a spotlight on some of the most common financial bad habits that many people unknowingly practice. These habits, while seemingly minor, can have a significant impact on your financial health and future.

Nicholas J. Colantuono, CFP® joins the Money Wisdom podcast this week to discuss these habits that we want to help you avoid. Check out the show to learn how to identify and break these habits to ensure a more secure financial future.

One of the first bad habits to be aware of is ignoring your account statements. While it’s not advisable to obsessively check your balances daily, completely ignoring them can lead to a lack of awareness about your financial situation. You want to at least be somewhat informed about what your money is doing because ignoring it can be a sign of larger insecurities around financial planning.

Another critical habit to be wary of is becoming addicted to a rising stock market. It’s easy to get caught up in the excitement of watching your investments grow, but this can lead to poor decision-making. Everyone knows that the goal is to buy low and sell high, yet many people do the opposite because they get caught up in the market going up. We can help you be more strategic and patient, especially during market downturns.

Procrastination is another major issue that can affect your financial well-being. Whether it’s delaying important financial decisions or putting off tasks like estate planning, procrastination can have catastrophic consequences. Many people avoid thinking about end-of-life decisions or tax planning, but these are crucial areas that need timely attention.

Long-term care planning is often overlooked, with many people assuming they won’t need it. Sticking your head in the sand and pretending that nursing home care isn’t a possibility can leave you unprepared. Having a plan in place can help bring peace of mind and ensure that you’re not caught off guard if the need arises.

Finally, the episode touches on the habit of constantly hoping for good returns instead of taking action. Simply rooting for your portfolio to do well is not a substitute for a solid financial plan. You don’t need to swing for the fences; sometimes, just getting on base consistently is enough to achieve your financial goals.

If you recognize any of these bad habits in your own financial life, it might be time to make some changes. Reach out and we can start helping you take steps towards improving your financial future.

Here’s some of what we discuss in this episode:

• What you need to know about your account statements and why they can be valuable.

• Emotional decisions will often weigh you down and lead you in the wrong direction.

• It’s easy to fall back on procrastination when you don’t want to address an area of your finances.

• Long-term planning gets pushed back because it doesn’t seem necessary today, but it’s essential for protecting everything you’ve worked for.