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.

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

All News

Voice of Salt Lake Bees Steve Klauke...

BY ALEX CABRERO, KSL TV AND CARTER WILLIAMS, KSL.COM

Steve Klauke, legendary Bees broadcaster, gets memorialized in stadium that cemented a decades-long career

The long-time voice of the Salt Lake Bees, Steve Klauke who died last week, was honored during game at Smith’s Ballpark.

18 minutes ago

Mia Bailey is suspected in a double homicide on June 18, 2024.  (Photo courtesy of the Washington C...

JOSH ELLIS KSLTV.com

Police search for suspect in double homicide in Washington City; shelter-in-place lifted

Police are looking for a transgender woman suspected in a double homicide in Washington City and ask residents to shelter-in-place.

4 hours ago

Juneteenth Utah...

Emma Keddington

Juneteenth: the past, the present and the future

Juneteenth is "a celebration of freedom, family and the joy of being alive," said museum specialist Kelly Navies.

4 hours ago

A man holds a passport in front of a world map. Expansions of passport services are on their way ac...

Kyle Remund

Salt Lake City to get a passport agency

Currently, Utahns have to travel out of state to reach a passport agency. That is set to change with the announcement of an agency in SLC.

5 hours ago

People outside the Supreme Court, supporting the DACA program. A Utah immigration attorney said Bid...

Aimee Cobabe and Emma Keddington

Utah immigration attorney breaks down Biden’s executive action aimed to help immigrants

Local immigration attorney Carlos Trujillo said these changes will impact thousands of people here in Utah.

13 hours ago

Box Elder rollover...

Emma Keddington

Police confirm fatal rollover in Box Elder, car was reportedly stolen

The car was found in a ditch off of I-84 in Box Elder County. The victim was ejected from the car in the rollover.

14 hours ago

Sponsored Articles

Underwater shot of the fisherman holding the fish...

Bear Lake Convention and Visitors Bureau

Your Bear Lake fishing guide

Bear Lake offers year-round fishing opportunities. By preparing ahead of time, you might go home with a big catch!

A group of people cut a purple ribbon...

Comcast

Comcast announces major fiber network expansion in Utah

Comcast's commitment to delivering extensive coverage signifies a monumental leap toward a digitally empowered future for Utahns.

a doctor putting her hand on the chest of her patient...

Intermountain Health

Intermountain nurse-midwives launch new gynecology access clinic

An access clinic launched by Intermountain nurse-midwives provides women with comprehensive gynecology care.

Young couple hugging while a realtor in a suit hands them keys in a new home...

Utah Association of Realtors

Buying a home this spring? Avoid these 5 costly pitfalls

By avoiding these pitfalls when buying a home this spring, you can ensure your investment will be long-lasting and secure.

a person dressed up as a nordic viking in a dragon boat resembling the bear lake monster...

Bear Lake Convention and Visitors Bureau

The Legend of the Bear Lake Monster

The Bear Lake monster has captivated people in the region for centuries, with tales that range from the believable to the bizarre.

...

Live Nation Concerts

All the artists coming to Utah First Credit Union Amphitheatre (formerly USANA Amp) this summer

Summer concerts are more than just entertainment; they’re a celebration of life, love, and connection.

The 7 deadly sins of personal finance