Why do so many smart people feel like they’re barely getting by?
Whether you are a high earner or not, we all need to exert mental energy on our personal finances. Don’t make the mistake that just because you make a lot of money, you are immune.
One of the biggest misconceptions in personal finance is that people that make a lot of money don’t have money worries.
I’m not saying that we should feel sorry for people that are high earners. I’m pointing out that personal finance education is important for all of us.
It’s not your fault if you’ve made poor money choices, up to a point.
I don’t blame anyone, high earners included, for making poor money choices (up to a point). Most people never learn basic personal finance skills.
Think about an emergency room physician. He was likely one of the top students in his class his entire life. He’s proven that he can learn complex matters. He can do the hardest things imaginable, like saving someone’s life.
The problem is he was never taught to use his brain to manage his own personal finances.
If that ER doctor is living paycheck to paycheck, he likely won’t receive much sympathy. He’s probably blamed for not making better money choices.
People will say he makes plenty of money. It’s his own fault. He must be irresponsible or selfish or craves expensive things.
I don’t think that’s fair.
I think that ER doctor should get a pass from undeserved judgment. I’m not saying you have to feel bad for him or offer him your sympathies. What I am saying is he should be given a chance to learn about personal finance just like the rest of us.
Does that mean he is forever excused from taking responsibility for his money choices?
Of course not.
We all need to take responsibility to educate ourselves. That’s the reason a website dedicated to thinking and talking about money exists in the first place.
That’s a great start, but it’s not enough.
Personal finance education is for all stages of our lives.
Personal finance education needs to continue throughout adulthood. So many of the concepts we talk about won’t resonate with high school kids who are still provided for by their parents.
Personally, I needed to feel the pain of being out on my own before the core lessons sunk in. I had no perspective prior to that.
One of my priorities with Think and Talk Money is to help you learn these core principles before you feel too much pain.
If you’re in the early stages of your career, there is no better time than now to develop strong money habits. It can be very difficult to correct bad habits as time goes on. A better plan is to work on developing good money habits now.
If you’ve struggled up to this point and want to work on your money habits, there’s good news. You have a major advantage.
You’ve felt the pain.
You know what it’s like to live paycheck to paycheck.
Use that perspective to motivate yourself to make adjustments.
Don’t blame yourself or feel ashamed. Like the ER doctor, personal finance education wasn’t something you knew you needed. Now you know better. Time is still on your side, if you get started today.
Talking about money is not taboo.
One of my other priorities with Think and Talk Money is to confront the negative money stereotypes that dominate society. To start with, I’m on a mission against the common refrain that it’s taboo to talk about money with our family and friends.
Are we supposed to accept that it’s better to struggle alone?
That we should isolate ourselves in a constant state of worry?
That we are forbidden from seeking out help by talking to the people we trust the most?
I refuse to accept any of that.
Who even said talking about money is taboo in the first place?
What does “taboo” even mean? Let’s look it up.
Taboo: “Banned on grounds of morality or taste.”
Morality or taste? What does that mean? Let’s look up “moral.”
Moral: “of or relating to principles of right and wrong in behavior.”
Ah, I see.
With these definitions as context, let me try to define taboo in terms that actually make sense:
Taboo means we shouldn’t do things that we know are wrong.
OK, that I get.
I’m flipping the script on what taboo means when it comes to money.
And with that understanding in mind, I’m flipping the script on what taboo means when it comes to money.
- It’s taboo to lie to yourself that you are the only smart person who is living paycheck to paycheck.
I can keep going all day. I think you get the point. Talking money is not taboo.
Keep an eye out for posts about the current money conversations I’m having.
In the spirit of convincing you that talking money is not taboo, we are introducing a new post series this week. In this continuing series, I will highlight the current money conversations that I’m having with my friends and family.
In our first of these posts later this week, I’ll share how my wife and I recently talked through our decision to split our Later Money between emergency savings, college savings and mortgage debt.
I’ll also share some of the empowering conversations I’ve had recently with Think and Talk Money readers. I learn so much from these conversations, whether they’re with my mesothelioma clients, my students, or my friends.
Let’s flip the narrative together.
Talking money is not taboo. The only thing that’s taboo is avoiding your personal finances.
Have you had any beneficial money talks lately? How did it feel afterwards?
Please continue to reach out in the comments or on socials with your responses and thoughts.