ALL NEWS

The 7 deadly sins of personal finance

Jun 10, 2019, 1:48 PM
personal finance stock market investing seven deadly sins...
Photo: Getty Images

SALT LAKE CITY — We’ve all done stupid things in our financial lives, and we don’t think that we’re unique in that situation.

That’s why Dave Noriega and Debbie Dujanovic, hosts of Dave & Dujanovic on KSL NewsRadio, think that it’s so important to have open and honest conversations about what our finances really look like in the cold light of day.

“We don’t talk about how much money we make, we don’t talk about how much we spend or how much debt we’re carrying around on our credit cards,” Dave said on Monday’s show.

“[Finances are] one of the biggest stressors in your life. It’s the reason most marriages end,”  he continued.

So where do you start looking?

The seven deadly sins of personal finance

Sometimes it’s easier to break problems down into more manageable chunks and deal with them individually. Author Brett Wilder established “seven enemies to financial success” in his book, “The Quiet Millionaire.” Financial guru J.D. Roth took Wilder’s list a step further and called it the seven deadly sins of personal finance. They are:

Lack of Discipline

The fact of the matter is that you can’t build wealth if you can’t keep any money around, Wilder writes. Sometimes it feels like money comes in one hand and out the other — like it’s burning a hole in your pocket.

That’s why Dave likes to keep cash around.

It’s just more difficult for me to turn over that five spot!

Wilder advises finding out where your spending is going. Once you know where all of your money is going, you can start making the decisions about whether or not you need that subscription here, or that lunch out of the office there. Knowledge, he says, is the greatest weapon you can have when it comes to your finances.

Materialism

The next big enemy to your financial success is materialism. Having more things isn’t going to make you any happier, Wilder writes.

Wilder says that the mentality of keeping up with the Joneses can lead to what he calls “lifestyle inflation.” Each purchase you make leads you further and further down the treadmill and sets the bar higher and higher every day and then it becomes even harder to get out.

Debt

Now, Wilder would tell you that not all debt is bad. Most of us don’t have the ability to save up enough cash to drop a duffel bag full of cash off at the real estate agent to pay for a house in full. Of course, you’re going to finance the purchase of a home.

But he says you do need to watch out for all of the other things that you might be breaking the credit card out for.

Debt, he says, can be the biggest enemy to your financial wellbeing.

Inflation

It’s hard to keep track of this, but inflation is always something to be aware of and Wilder says there are steps that you can take to mitigate its effects. You know the things you enjoy now are going to cost more later. Plan ahead for that.

Taxes

Don’t overpay the IRS. Figuring out how much you need to pay in taxes accurately can keep more of your money in your pocket working for you, Wilder advises.

Investment Mistakes

Whether it’s a poorly structured portfolio or a perpetual timeshare, Wilder says you need to make sure that when you decide to put your money to work, it will work for you. Education, he writes, is your best bet to avoid mistakes in investing.

For his part, Roth advises against trusting outside information or even the news for your decision-making. He stresses the importance of always doing your own homework.

Emergencies

Perhaps the biggest enemy to your finances is unexpected, Wilder says. Sometimes the sewer breaks, sometimes the roof leaks; Oscar Wilde said it best when he warned us all to expect the unexpected. Having a plan for when things go wrong can take a lot of the stress and uncertainty out of a situation when things take a turn into the unexpected.

The $1,000 Challenge

$1,000 Challenge

Dave & Dujanovic introduce the $1,000 Challenge. (Image: KSL Newsradio)

Join the $1,000 Challenge Facebook group to see other brilliant ideas on how to get your budget in check and to be a part of a tribe that’ll encourage you every step along the way.

 

And tune into Dave & Dujanovic every day from 9 a.m to noon on KSL Newsradio 102.7 FM / 1160 AM for financial tips and tricks.

Dave & Dujanovic can be heard weekdays from 9 a.m. to noon on KSL Newsradio. Users can find the show on the KSL Newsradio website and app, as well as Apple Podcasts and Google Play.

Today’s Top Stories

All News

A ballot drop box is pictured. Those wanting to vote in the utah primary election can still vote in...
Amie Schaeffer

Utah primary election: Acceptable ID to bring for in-person voting

Utah's Primary Election is today. Voters need to be sure they have the right identification to cast their ballot.
12 hours ago
bountiful porch thefts...
Dan Bammes

Bountiful woman arrested after allegedly stealing $6,000 from patient

Miller, who worked with the victim as a recreational therapist when the theft occurred.
12 hours ago
A technician works on a component of Rocket Lab's Electron rocket ahead of the launch on the Mahia ...
NICK PERRY Associated Press

NASA hopes New Zealand launch will pave way for moon landing

The mission came together relatively quickly and cheaply for NASA, with the total mission cost put at $32.7 million.
12 hours ago
Over 200 behives broke on I-80 as the semi-truck transporting them rolled. Photo credit: Park City ...
Devin Oldroyd

Semi-truck transporting over 200 beehives rolls over on I-80

Over 200 behives broke on I-80 as the semi-truck transporting them rolled.
1 day ago
File photo...
Simone Seikaly

Salt Lake City Police cancel Amber alert for 11-year-old girl

The abduction reportedly happened in Salt Lake City at 456 North and 1100 West. By early afternoon on Monday, the victim was found in Tooele.
1 day ago
Freshly pressed vinyl records are produced in a stamper at the United Record Pressing facility Thur...
DAVID SHARP Associated Press

Manufacturers struggle to keep pace with vinyl record demand

The Recording Industry Association of America says record album sales grew 61% last year — and reached $1 billion for the first time since the 1980s.
1 day ago

Sponsored Articles

Tax Harassment...
Jordan Wilcox

The best strategies for dealing with IRS tax harassment | You have options!

Learn how to deal with IRS tax harassment. This guide will teach you how to stop IRS phone calls and letters, and how to handle an IRS audit.
spend a day at Bear Lake...
Bear Lake Convention and Visitors Bureau

You’ll love spending the day at Bear Lake | How to spend a day at Bear Lake

Bear Lake is a place that needs to be experienced. Spend a day at Bear Lake.
Curb Appeal...
Price's Guaranteed Doors

How to have the best of both worlds for your house | Home security and curb appeal

Protect your home and improve its curb appeal with the latest security solutions like beautiful garage doors and increased security systems.
Prescription opioids can be disposed of during National Prescription Take Back Day...
Know Your Script

Prescription opioid misuse | How to protect your family from the opioid epidemic

Studies have shown that prescription opioid misuse has increased since COVID-19. So what do you need to know about these opioids?
Follow @ikeyospe...

Tax Tuesday: The Most Common Mistakes People Make When Filing Their Taxes

Fortunately, for most average earners, they will not end up owing overpayments received for the Child Tax Credit in 2021.
Follow @ikeyospe...

Tax Tuesday: How will last year’s child tax credits affect you?

Fortunately, for most average earners, they will not end up owing overpayments received for the Child Tax Credit in 2021.
The 7 deadly sins of personal finance