5 Ways That Avoiding Your Money is Costing You

5 Ways That Avoiding Your Money is Costing You

First off, I want to say that avoiding your finances is VERY common. I want you to be patient with yourself as you start to do the work to take an active role with your money. When it comes to something you are avoiding, you tend to build things up in your heads and create a false reality that doing the work will be a lot more difficult than it actually will be (I say this from experience)! While I no longer avoid my finances, I do like to avoid other necessary things like calling my doctor, or making a dentist appointment. Honestly, most phone calls are things I avoid! It’s 2022, why can’t we book all appointments online??!!

I want the information I am about to share with you to inspire you, not to make you feel bad. I’m going to give you a few easy steps that you can take to start getting ahead of things after I share with you how being in avoidance mode is costing you.

1 - Late fees can really start to add up if you are avoiding your money. The unopened bills, or emails that you know are bills, translate into late fees, some in the way of flat fees, but usually in the way of interest on past due payments.

2 - Higher interest rates costs can really add up. Many credit card companies have fine print (you know that pamphlet that you never read) that says they are able to raise your interest rate if you miss payments. Missed payments will also impact your credit score which will mean higher interest rates on car loans, mortgages, and other loans. I have heard of car loan interest rates at a 25% rate. When you compare that to zero % or even 5-10%, the extra costs really add up.

3 - Overdraft costs are also hitting your bottom line. When your bank account dips into, or is regularly in overdraft, not only are you being charged interest on the amount you are borrowing, you are also very likely paying a flat fee for using overdraft.

4 - Lost job opportunities! Yes, that’s right, depending on the job, and where you live, some employers are pulling your credit report as part of the hiring process. Missed payments and a low credit score can be red flags that prevent you from getting a job.

5- Missing deductions if you are a business owner will increase what you are paying in taxes! We don’t want that! Losing a receipt here and there may not seem like a big deal, but it can really add up on the bottom line of your taxes. I know bookkeeping isn’t any fun at all, but it’s essential. If it’s an area of your business that you are always avoiding, maybe it’s time to look at outsourcing.

In addition to the extra financial costs, avoidance is also costing you time, so much time. Most of this time comes from the mental space that worrying about your money when you’re in avoidance mode is costing you. It can cause significant distractions and mean that you are missing out on quality time with friends and family. You’re there, but you’re not really there because your head is full of worry.

Remember, my goal was to inspire you to start to dive into your finance, not to scare you and I hope that I was able to do exactly that. So what’s next? How do you escape the circle of money avoidance without feeling stressed and overwhelmed?

Take it one step at a time:

1 - Get caught up on opening all of your bills, the envelopes and the emails. As you open them, write down the amounts, their due dates, and who they are owed to in a notebook, spreadsheet, on a calendar, or the notes app on your phone.

2 - Next up, dive into all of your balances. Write down where you stand today with any bank account balances and balances on your debts. This will give you a full picture of where you are right now.

You’ve taken two very important steps and you should be proud of yourself!

Then it’s time to start to build your $$ plan. Need a little help? Click HERE to grab my free budget tool. It will make things easier for you by doing all of the math. This will give you a clear picture of where you stand on a monthly basis, but I also want you to take it a step further. I want you to build a plan based on your paychecks. With all of your monthly payments and dates, break them down so you know which paycheck in the coming month will cover each payment. This is really the key to start to implement your monthly budget. A little bit of time spent planning the month ahead can give you not only clarity, but peace of mind.

If you are ready for help to make changes with your money, I am here for you! I’d love to hop on a free Zoom consultation with you to learn about you and see if we are a good fit for each other. Grab your spot HERE!

Now go grab your finances by the horns and start saving yourself money today!

Sherry

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