11 MONEY MISTAKES THAT ARE KEEPING YOUR BROKE
Article by Alyssa Hammond
11 Money Mistakes that are Keeping You Broke
In helping hundreds of women on their path to wealth, one thing I know for sure is that money can feel totally overwhelming. It’s not your fault, most of us weren’t taught about money by our parents or the school system, and there’s a massive amount of information on the internet, much of which is conflicting or uses lingo that the average person doesn’t understand.
I’ve been where you are - wanting to master money but overwhelmed by all of the information. Motivated to improve your money situation but not knowing where to begin, who to count on, or what to prioritize on the road to wealth. You want a clear path to success with money, while living a lifestyle that brings you joy and doesn’t leave you experiencing serious FOMO.
If you truly want to win with money, one of the first things you need to know is what to STOP doing. Here are 11 mistakes to avoid in order to experience success on your path to becoming wealthy.
Mistake #1 Avoiding all talk of money
Money can feel taboo to discuss, but there is so much power in openly owning your financial situation. Avoiding the subject can lead to self-sabotage at worst and poor money management at best. Men are encouraged to openly talk about money with their peers and elders, but women have traditionally been told this is not ladylike, and the shame women feel around money can make it more difficult for us to excel financially. Normalizing talking about money de-stigmatizes the topic and can only benefit us as women!
Mistake #2 Taking advice from broke people
The broke people that we all know are typically this way for a reason. The advice that these individuals provide (solicited or not) will likely not help you in the long run. If you’re needing advice, turn to someone who is doing with their money what you’d like to be doing.
Mistake #3 Believing the lies you tell yourself
Most women come to me and say “I’m tired of my own bullshit. I’m tired of making excuses for my spending and not getting anywhere.” The minute you create awareness around the mistakes you’re making, you can start addressing them one-by-one. But be gentle with yourself. Many of my clients get frustrated with themselves when they realize they are the cause of their money issues, but if you’ve been living a certain way for many years, you won’t change immediately - even if you have all the information. One helpful money affirmation that I recommend writing down is: “You don’t plant a seed & harvest the same day.”
Mistake #4 Not having a plan for your money
Know what your goals are, have a plan for where your money needs to go, and stick to it. You may be able to earn a lot of money, but having a plan is the only way to truly ensure that you keep it.
Mistake #5 Saying ‘yes’ to everything
Part of a wealthy mindset is learning to say ‘no’ when something isn’t in alignment with your personal and financial goals. Only saying ‘yes’ to things that excite you is a perfectly healthy way to live your life, and saying ‘no’ to the things that drain your time, energy, and money is a great way to protect your sanity and your wallet!
Mistake #6 Putting yourself in tempting situations
If you know that you charge $150 to your credit card every time you go into HomeGoods, avoid that store like the plague (unless you actually need something)! Tempting situations look different for everyone, but awareness of what tempts us can be key to avoiding overspending.
Mistake #7 Using your credit card as a crutch
If you’re going through your debt-free journey, you’ll want to halt credit card use as much as possible. If you don’t have the money and it’s not a true emergency, avoid pulling out your card. One simple hack is putting a piece of tape over your credit card with a short phrase to remind you not to use it. “Not today demons!” is a personal favorite.
Mistake #8 Paying off debt without emergency savings
Before paying off debt, get at least $1k saved up for emergencies. If this step is skipped and an emergency arises, it will cause you to charge your credit card, leaving you in the same place you started. Starting is often harder than continuing, and re-starting can be even harder. Having an emergency fund can help you to stay on track and avoid starting over.
Mistake #9 Focusing on too many goals at once
In order to make the most of your money, you’ll need to get hyper-focused on one area at a time. That means if you are trying to save up for a car, focus all your extra money toward the car until you’ve reached your goal. This, as well as other short term goals, can fit into a long term goal of ‘being financially independent’, but trying to accomplish multiple short term goals at once can feel overwhelming.
Mistake #10 Waiting to invest
Because of inflation, keeping your life savings in a bank account will actually cause you to lose money over time! The earlier you start investing, the better off you’ll be. This is because of our friend: compound interest. Compound interest is basically interest growing on top of interest earned, plus what you originally invested. This means that the more your money grows, the faster it multiplies; and the faster it multiplies, the more momentum it gains.
Mistake #11 Not prioritizing self-care
When we’re tempted to overspend, it’s usually because we’re trying to cover up a feeling. Are you lonely? Sad? Pissed off? When we have these thoughts, it’s tempting to do a bit of retail therapy. Those moments can serve as signals telling us that we need to refill our cup. Self-care looks different for everyone. For me, it’s doing a hair mask, binging Friends, coloring, snuggling my dog, or spending time outside. Ask yourself what makes you feel recharged, write a list of low-cost activities, and pick an item from the list the next time you feel tempted to overspend.
Save this article for the next time you need a reminder of what NOT to do on your journey to financial success.
