Finance Quick Answers
I am always concerned about my financial situation. What can I do to stop being so nervous about it?
Whether you earn a lot of money or just a little, a family can avoid the big money traps that keep most people from realizing their dreams.
Trap #1 - not saving enough money. Ask
yourself what you would do if you lost your job or
experienced another major life change. This should help
give you the motivation you need to start new savings
and spending habits.
Trap #2 - living on the financial edge. Many
people have to borrow money when a financial crisis
occurs. Motivate yourself to spend less by setting a
goal. When you have a goal, spending less doesn’t seem
like deprivation but more like moving toward your goal -
and that is very satisfying.
Trap #3 - spending on impulse. Before you buy
something, ask yourself if you can accomplish the same
task with things you already own. For costlier items, do
research to make sure you’re getting the best value.
Source: Dacyczyn, A. (1995, May). The big money traps and how to avoid them. Bottom Line Personal, p. 5 (S. McKinnon 6-95).
Sandra McKinnon, Consumer & Family Economics Specialist, University of Missouri Extension
Cynthia E. Crawford, Ph.D., Consumer & Family Economics Specialist, University of Missouri Extension
Last update: Tuesday, July 15, 2008