Did You Escape These Powerful Money Traps in 2024?
Hi Reader,
Have you managed to avoid 2024’s sneaky money traps, or are you still feeling caught in their grip? From overspending to missed goals, these common pitfalls can sabotage our finances.
As we approach the year’s end, it’s the perfect time to reflect on these traps and how they’ve affected us. But first, let me share Rebecca’s story (name and profession changed).
A testament to the power of taking charge.
Rebecca’s Journey to Work Life - Balance
Rebecca, a pharmacist, started 2024 feeling completely overwhelmed. Her work life dominated her days, leaving little time for family or personal joy.
She convinced herself, “This is just how life has to be,” but deep down, she felt stuck.
By spring, she decided enough was enough. She began small carving out family dinners.
Then saying no to draining commitments. And finally rediscovering simple pleasures.
Today, Rebecca is happier, more confident, and thriving. She escaped the work-life balance trap.
She proves change is possible, one step at a time.
The 2024 Money Traps
Let’s dive into the most common money traps of the year and how they hold us back.
1. Procrastination
Delaying financial decisions doesn’t just waste time; it costs money. By the time you act, opportunities are gone, and progress feels out of reach. I got caught in this trap several times this year.
2. No Written Goals
Trying to manage finances without goals is like driving without a map. Everything feels chaotic and scattered, leaving little hope for progress.
3. Untracked Income and Expenses
Not knowing where your money goes keeps you guessing. Even with a high income, you might feel broke if your spending isn’t clear.
4. Lack of Emergency Fund
An emergency fund isn’t a luxury; it’s a safety net. One, unexpected costs like car repairs or medical bills can derail your finances. With your next paycheck start your emergency fund.
5. High-Interest Debt
Paying high interest drains your resources. You work hard, but the interest eats away at your income, keeping you stuck in debt.
6. Delayed Retirement Planning
Every year you wait to plan for retirement means more work later. Missing out on compound growth now means saving double in the future.
7. Overlooking Insurance
Skipping insurance can be devastating. A single unexpected event could wipe out your savings. And derail your financial goals.
8. House or Apartment Poor
Overspending on housing leaves little room for anything else. Savings, fun, and emergencies take a backseat, creating constant stress.
9. Avoiding Money Conversations
Not talking about finances with your partner builds tension. Without teamwork, managing money becomes harder and lonelier.
10. Saying Yes Too Much
Constantly meeting others’ needs sacrifices your own stability. Setting boundaries isn’t selfish—it’s essential for your financial health.
11. Not Seeking Financial Guidance
Managing finances alone without professional help leads to missed opportunities and costly mistakes. A financial coach offers structure, insights, and strategies tailored to your unique goals.
12. Getting Financial Knowledge from News Outlets
Relying solely on news outlets for financial advice can be misleading. Generic tips often don’t align with your specific goals and can create confusion.
Conclusion
These traps, from procrastination to delayed retirement planning can derail your financial progress.
The good news? Recognizing them is the first step to escaping them. Learn from the challenges. Take intentional action. And turn these obstacles into stepping stones toward a stronger financial future.
So, which trap did you break free from? Let’s make 2025 the year of financial freedom.
🎓What I Have Learned
“Obstacles don’t have to stop you. If you run into a wall, don’t turn around and give up. Figure out how to climb it, go through it, or work around it.” – Michael Jordan
✒️Guest Author
Have you ever wondered why it’s tough to reach your financial goals, stick to a budget, or keep up with New Year's resolutions? After helping thousands of clients since 2008, we’ve found a key reason that’s often overlooked: your "why." To learn more check out Dave Jacobson’s blog post. Long Term Financial Goals Seem Hard? Tips for Success You Need to Know
📝Knock out these money-related tasks now to help you finish the month strong
The deadline to contribute to your 401(k) for the 2023 tax year is Dec. 31. You can put away up to $22,500, plus an extra $7,500 if you’re age 50 or older. Even if you can’t afford to max out your 401(k), it’s important to at least contribute enough to unlock your company match. Otherwise, you’re leaving money on the table.
Many (but not all) people who have Flexible Spending Accounts or FSAs, are on the clock to spend the funds in them by Dec. 31. FSA money is use-it-or-lose-it, so you should definitely use it to cover qualified purchases.
Nobody likes thinking about their estate plan so use Dec. as an “artificial deadline month” to motivate you to take care of business. Review important documents like your will, trust and power of attorney, paying extra attention to any life changes that impact your beneficiaries. Better to do it now before you need it.
📖Money IQ - Your chance to gauge your money knowledge
IQ Question
What are the two types of personal bankruptcy filings you can make?
A. Filtered and Unfiltered
B. Chapter 9 and Chapter 11
C. Fixed and Revolving
D. Chapter 7 and Chapter 13
📢Testimonial
Bobby,
I am very grateful to you for believing in me. Many people give words of encouragement enough to feel like they did their part to offer support. You Bobby went further and invested your time and patiently guided me into a place where I became confident in what you already realized in me. I know this journey continues but with your investment, the path is a little clearer. I will be forever grateful for your kind words, prayers, and coaching. EJB
🔶You don't have to keep stressing. If deep down you know that you are not happy with your money, book a call today.
FREE 30-minute "Squash Your Stress"
Thanks for reading this far.
Thanks for your time and kindness.
Stay healthy, motivated and wise.
Celebrate.
😀See you Jan. 2025!
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