The Frugal Creditnista

5 Ways to Stop Sabotaging Your Financial Success

Have you ever wondered why, despite your best efforts, financial success seems so far away? Sometimes, the real issue is closer to home than you think. It’s time to have a heart-to-heart about the subtle ways you might be unintentionally blocking your own financial glow-up. Let’s break it down and shift how you approach your finances.

Understanding the root causes of financial self-sabotage is the first step towards overcoming them. It's not just about recognizing these behaviors but also understanding why they happen and how they impact your financial journey. This insight can be a powerful catalyst for change.

1. Your Credit Score: More Than Just a Number

That 3-digit number can either be a key or a padlock to your financial goals. Check your credit reports at least once every three months and invest in credit monitoring to receive alerts of any significant changes. We have a plethora of resources available if you need to improve your credit. It’s all about taking control, not taking cover. You’ve got this!

2. Budget? What Budget?

You’re working. You’re spending. Every day. If you’re not fully in tune with what is coming in and what is going out, you’re bound to take a few wrong financial turns.

So, what can you do? Get up close and personal with your cash flow. Create a budget that feels like a financial selfie – real, raw, and you! There’s an app for that, a spreadsheet for that, and old-school pen and paper work too.

3. Debt – The Unwanted House Guest

Got debt? Most of us do. It’s like that awkward house guest who just won’t leave! It’s time to show your debt the door. 

You need a strategy! What are you tackling first, high-interest rates or lowest balances? Is consolidation the answer? Settlements? Bankruptcy? Strategize, then work the plan. And remember, small victories lead to big wins. Take it one step at a time.

4. The Saving Game – More Than a Piggy Bank

Savings aren't just for rainy days; they’re your secret weapon for long-term financial success. If you’ve ever had an expense come up and have no idea how you’re going to tackle it, you’ve felt how not having savings can impact you. Let’s flip that.

So, how much should you save? You’ve probably heard anywhere from $1000 to 3-6 months of living expenses. YOU decide how much YOU need to have in YOUR savings account. 

Consider this: If you were to lose your job today, how long would your savings cover you and how long would it take you to find another job/source of income?  This answer will determine how much you need to save. 

To start, automate. Yep, think of your savings as a bill and make deposits monthly. Prioritize it. It doesn’t matter how large or small; the most important thing right now is to start the habit. 

5. Investing – It’s Not Just for the Suits

Investment talk sounds like another language. You’re not alone. But steering clear of investing will have you working until you’re 75. That’s not exciting. You want your money to grow without you having to clock in for it.

Where to start? Small – but think big! Take advantage of your company’s retirement plan and research ETFs, Index, and Mutual Funds. I have an amazing Wealth Partner who teaches in my Wealth On Fire Academy and has a free series available in simple-to-understand terms—dive in! Knowledge is power, so let’s power up with some investing 101.

Final Thoughts

Listen, transforming your financial story isn’t about waving a magic wand. It’s about mental shifts, making informed moves, and sometimes, calling in your financial Partners – aka us, for backup. 

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