Avoid Financial Traps by Discovering Your Blind Spots
Money can be a daunting task, which is why most of us tend to avoid certain aspects of our finances altogether. Maybe it’s a fear of investing. Maybe it’s impulsive spending. Whatever your blind spot is, pinpointing it is the key to getting past it.
When you can become aware of and acknowledge your money problems, you are much more likely to figure out what is going wrong if your finances seem out of control. Psychologist Alice Boyce recommends asking yourself a few questions to find your blind spots:
What are you putting in the “too tight basket”? We all have things that are more in our comfort zone or outside of it. What do you avoid doing when it comes to money because it scares you?
Inertia Our behavioral biases are what marketers expect, especially that we tend to repeat behaviors that we have done in the past. Where does inertia cost money?
Minimizing mistakes In what areas of your life do you underestimate how much you spend? Common examples might be grocery shopping, alcohol, insurance, or recurring fees and subscriptions (e.g., credit card fees, ATM fees, magazines, Netflix).
Identifying these spots is an important first step that many of us don’t take when trying to deal with money. The good news is, it’s pretty easy to figure out what it is. For more information, go to the full version of the message at the link below.
Uncover Your Money Blind Spots | Psychology today