Top 10 Embarrassing Money Topics
LISTEN TO SAFE 1 TALK WITH THE MONEYWISE GUYS ON THIS TOPIC!
Not everyone is comfortable talking about money – and for some it’s a topic that can be embarrassing, uncomfortable and even taboo. In fact, a recent Wells Fargo survey of over 1,000 adults found 44% ranked “personal finances” as the hardest topic to discuss, followed by “death” at 38% and “politics” at 35%. Similarly, a National Foundation of Credit Counseling survey on financial literacy found only two in five adults believe if their money could talk it would say “We’ve been a successful team!”
So, to alleviate some of the embarrassment which can accompany talking about money, below you will find some sound advice surrounding the top ten embarrassing money topics.
10. Money and My Significant Other
“Some couples go over their budgets very carefully every month, others just go over them.” – Sally Poplin
- Without a doubt, money is one of the leading causes of stress in a relationship.
- One way to avoid financial turmoil and uneasiness is to have an honest conversation, for better or worse, about your financial situation with your significant other.
- In many relationships money can be a taboo topic, so if your partner is not jumping at the opportunity to have this conversation it may take some patience and understanding to make him or her feel comfortable.
- Be sure to create a safe environment for the conversation and keep an open mind.
9. Not Knowing How to Save
- Saving money takes conscious effort – it doesn’t just happen!
- When doing so, however, here are a few things to keep in mind:
- Don’t Try to Save Everything at Once. Instead, start small with a specific goal that is measurable and achievable. For some individuals this may be $100, while for others it could be $500. Whatever the amount, be sure it is something you can achieve within 60 days.
- Once this first goal – whatever it may be – is achieved, quickly add to it! So, $100 may become a new goal of $250 or $500 may become $750, and so on.
- Pay Yourself First! Be sure to set aside savings at the time you have it, such as when you receive your paycheck. Don’t wait to do this at the end of the paycheck period, as this never works.
8. Managing a 401(k)
- When you decide it is time to invest your money be sure to do so with the assistance of a financial planner who can assist you during the process and assess your personal risk tolerance.
- It is also important to Know Your Money Psychology!
- Remember, people who are “ultra conservative” and afraid of losing money also miss opportunities for growth.
7. The Burden of Student Loans
- The cost of higher education keeps getting higher and higher.
- Obviously, taking out student loans is very common amongst students.
- In doing this, however, many individuals do not pay close attention to the amount of money, as well as accompanying interest rates, being accumulated until after their education is complete.
- This is when the amount of debt can feel overwhelming.
- If you are in such a predicament, know your debt can be conquered – it just takes a little bit of planning.
- After all your education is designed to put you on a positive financial trajectory, making the short-term debt well worth your long-term success.
6. A Weak Credit Score
- A low credit score can definitely put a damper on any financial plans you may have.
- Whether it be purchasing a home, buying a car or even being approved for a credit card, the interest rate you receive is greatly derived from your credit score.
- Rebuilding your credit, however, is not impossible at all but it does take time!
- Making consistent, monthly payments will definitely help you build good credit, however, paying off loan and debt balances in full is even better.
- So, the best option in establishing great credit is to create a budget which results in a monthly pay off of credit card balances.
- Missed payments, late payments, bankruptcy, repossession, and foreclosure, undoubtedly, do have a negative impact upon your credit and will stay on your credit report for seven years.
- However, these credit factors do have less impact upon your credit score for every year that passes.
- And, in the event you feel this is not something you can do on your own, please know there are debt professionals as well as debt-relief attorneys whose mission is to assist in such efforts.
- In doing so, debt settlements can be made without doing damage to your credit score.
5. Credit Card(ssss)
- Some people think the more credit cards they have, the better their credit score and finances will be.
- In reality, an abundance of credit cards can actually damage the credit reputation you have built.
- As a rule of thumb, two credit cards are all that is needed to help build credit.
- And, as is known with credit cards, be sure to read the fine print before deciding to take on a relationship with a new creditor.
4. Loaning Money to Family and Friends
- This situation comes up quite often where relatives and friends have different levels of financial success.
- A struggling person will often look to a close or financially stable family member or friend for help in a crisis.
- If this happens to you, what do you do?
- Here are four important steps to consider if you are approached or thinking about lending money to a family member or friend.
- Decide how important repayment of the loan is to you
- If the relationship is more important, think of the loan as a gift.
- If repayment is more important, then get the terms of the loan written down, signed and notarized.
- If a loan is unpaid, don’t let the issue sit around unresolved.
- Many people believe money and friends or family don’t mix.
- Essentially, if you lend money to a friend or family member, don’t expect it back.
- That’s not saying you won’t—it’s just that if the loan does go un-repaid, you won’t be as disappointed.
- There are no such things as loans among family and friends—they’re gifts!
- They’re a gift if you give or receive one – and a gift if you get paid back!
3. Debt Because of Bad Advice
- We have all received advice from family and friends on how to best manage our finances.
- And, as many of us know, not all advice we receive is good advice.
- In fact, when it comes to advice on how to better manage your finances, bad advice can abound.
- So, if you’re seeking financial advice, be sure to start with a trusted advisor and/or reliable source, such as the National Foundation for Credit Counseling, Consumer Credit Counseling Service, or even your financial institution.
- Remember, the best things in life – walking, jogging, hiking, exercising, playing in the yard, hanging out with loved ones, conversation, worship, smiling, etc. – are free.
- Advice comes free as well, however, when wrong or misused it can result in very costly effects.
- So, when given financial advice be sure to do your homework to make sure what you’re being told is right!
2. Debt Because of Overspending
- Spending beyond your means coupled with poor budgeting can lead to serious financial troubles.
- Always remember, however, that it is never too late to create a budget and start living within certain constrictions.
- In addition to the availability of budgeting apps, there are also debt professionals and debt-relief attorneys whose mission is to assist in such efforts. In doing so, debt settlements can be made without doing damage to your credit score.
1. Spending Well Above Your Means
- Keeping up with the Joneses is a phrase we have all used.
- And for some of us, it is something we have been guilty of by purchasing large dollar items to impress family, friends and neighbors, as opposed to satisfying a need.
- Research has concluded, however, keeping up with the Joneses does not provide the type long-term happiness desired.
- Instead, finding solace in much simpler types of spending is not only much more rewarding but results in less financial stress as well.
Money can be a difficult topic, but the more you communicate the better you will feel about your finances.