Writer: B.E. Conrad
These seven sins aren’t fatal, but they will leave you broke.
Study after study has shown that a large percentage of people would not be able to handle an unexpected $500 expense. Given those dire circumstances, it should come as no surprise that most workers are woefully underprepared for retirement.
While stagnant incomes and the rising cost of living certainly have a role to play, in many cases, it is the things we do every day that put us behind financially. These things in particular, seven deadly financial sins if you will, can stop your financial progress cold and leave you broke. They might not get you sent to hell, but they could send you to the poorhouse.
Envy – Keeping up with the Joneses might make you feel superior today, but those feelings of envy leave you broke and miserable in the long run.
Fear – When it comes to saving and investing, playing it safe can actually cost you money. Fear of loss causes you to invest your savings in low-yield instruments, and in the end, you won’t even keep up with inflation.
Sloth – It’s easy to put things off, but that laziness can cost you big time.
Greed – The “I want it now” mentality can be deadly to your finances and your future. It might feel good to buy the latest gadget or doodad, but having a solid financial nest egg feels even better.
Pride – Many DIY investors are either too proud to ask for help or too stubborn to admit they made a mistake. As a result, they let their losing investments run, failing to make the changes that could beef up their portfolios and build a nest egg for the future.
Lust – From smoking and drinking to gambling and overeating, lustful habits sap your finances and leave you wondering where your hard-earned paychecks went. Something as simple as quitting smoking can give you thousands of extra investible dollars every year, and stopping other expensive and unhealthy habits helps even more.
Sorrow – Falling victim to any of the first six deadly financial sins could leave you despondent and filled with regret, feeling helpless and frozen in place. Falling victim to despondency and regret means you never get started on your savings plan, dooming you to a retirement filled with want and fear.
These seven deadly financial sins are everywhere, but you do not have to fall victim to them. Once you know what not to do, develop an effective plan for retirement. It takes a lot of hard work, sacrifice, and dedication to put a savings plan together, but you will be glad you did.