The Real Problem with Personal Finance

Here's the problem with personal finance. 90% of the time people know what they need to be doing with their money and they either do it or they don't. 

People generally have enough knowledge to manage their money on their own.

What they are looking for is the motivation to change their habits and for someone to tell them what to do.

How people handle their money is not based purely on what the "right" decision to be made is. If this were the case people would never:

• go out to eat because it would be cheaper to eat at home.
• buy something they couldn't afford on credit.
• sign a mortgage for more house than they can afford.
• not have enough money to retire because they didn't plan for it.

The problem with constantly reading about money and what you should do with it is that it gets repetitive. You already know what you should be doing with your money most of the time.

Yes, there are three specific situations where guidance is helpful and needed:

• Debt (Bankruptcy, Repayment Plans, etc.)
• Savings (Retirement/Estate Planning)
• Taxes (Because they are way too complicated)

Beyond the few situations where you may need to have a relative expert help you determine what you need to do with your money, every other financial decision that you make is strictly psychological. 

So, what is it, in your mind, that is keeping you from achieving what you want to financially?

(image via Flickr)