Many people think that managing money is hard. They have many excuses for why they don’t manage their money. A few of them are reasonable excuses but most of them are just a result of laziness.
How to budget your money and money management tips
If you’re having a hard time managing all your financial and investment accounts, free finance tools and money management apps like Personal Capital can help you out a lot. Personal Capital is a free budgeting tool and money management service. It lets you manage all of your financial accounts from one place, including your bank, investment, credit card, retirement and other financial accounts. It also shows your net worth and analyzes your investment accounts to make sure you’re not overpaying in fees. The best part is all these services offered by Personal Capital for managing your money are completely free!
Now let’s go over some of the reasons and excuses people have for bad money management skills below.
Too Much Information About Managing Money and Personal Finance
“There’s just too much information about managing money and personal finances.” This is a reasonable excuse for not managing your money properly. There is simply so much information available to us today, thanks to the internet, that it makes us indecisive or it immobilizes us. In other words, all the information available to us today can cause information overload.
It can be difficult for some people to make financial decisions when there is information pouring out of every ear, telling you what you should and shouldn’t do. As Americans, we like to conduct our own research before making any type of financial decision.
Doing your own due diligence before making personal finance and money management decisions is actually really smart. Although, because there is so much information out there available to us, trying to find the correct advice can be time consuming. Reading and reviewing all of the information available can cause you to waste time, become overwhelmed, and immobilize you from taking action.
As it says in one of my favorite books called The 4-Hour Workweek, a low-information diet is key for success!
The 401(k) Plan Example
Research has shown that the more mutual funds offered in a 401(k) plan there are, the less likely an employee is to pick a fund and participate in the plan altogether. The reason for this is because they have too many options available to them and too many options to choose from. The employees become indecisive because they don’t know what funds to pick and place into their 401(k) account.
Now, a 401(k) plan that’s offered to employees with less mutual funds to choose from, are more likely to pick a fund or fund(s) to invest in and participate in the plan.
Financial News in the Media
Blame the media for not managing your money. It seems like some of things the media writes and talks about on the topics of personal finance and money makes me want to pull my hair out and run around like an insane person. Okay, maybe I exaggerated that a little, but seriously!
It seems like the majority of all personal finance information and financial news out there that’s presented by the media is geared towards old men. Honestly, young people who are only looking for some basic financial advice and budgeting tips end-up getting hammered with information like spending less at Starbucks or strategies about tax-optimization.
A word to the media, young people don’t care very much about tax-optimization, it’s too complicating and confusing to them. Also, as far as spending less money at Starbucks goes, you’re wasting your breathe. Young people don’t care how much Starbucks costs, they love it and don’t mind paying extra for their coffee.
The only things us young people really care about is where to put our money so it will grow automatically, in accounts with low fees and won’t require a lot of maintenance.
Back in 2007, the financial experts in the media advised everyone to invest in real estate. A year later the real estate market crashed and burned, putting us into one of the worst recessions ever! Now, the same “experts” are advising us on what to do in a post-recession, thanks but no thanks.
Horrible Excuses for Not Managing Your Money
Below is a list of horrible excuses and reasons people have for not managing their money:
- “Banks only want to profit off me.”
- “They don’t teach personal finance and money skills in school.”
- “Investing is risky.”
- “I don’t have any extra money to save or invest.”
Stop Making Excuses for Not Making Wise Money Decisions
I’m going to say this in the nicest way I can: Quit whining like a little baby as to why you can’t get your personal finances in order and start taking action!