Ramit Sethi: 6 Pink Flags You Have a Money Problem
Written by
Caitlyn Moorhead
Edited by
Molly Sullivan
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The nature or nurture foundation of financial problems can make them hard to decipher. Poor circumstances are one thing, but poor decisions are another. If you are worried that you or someone you care about may have a toxic relationship with money, before you recognize any red flags, sometimes it helps to spot them when they are still pink flags.
Money expert Ramit Sethi helped to identify these pink flags in order to determine whether or not you have a money problem. Here’s a look at some warning signs you should watch for.
6 Pink Flag Warnings There Is a Money Problem
Sethi doesn’t mince words when it comes to not only predicting areas where you could have money problems but also protecting you from them. Recognizing a financial area where you could use some improvement is the first step toward fixing it. Sometimes the signs are subtler, so to help spot Sethi said, “Your money should reduce your stress and expand your Rich Life. Many people, even people with high incomes, are unaware they’re suffering from limiting, even crippling, money problems.”
Essentially, it doesn’t necessarily matter how much you make, if your relationship with money is poor, you will be too. Though there are many financial no-nos, pink flags serve as warning signs to help steer you back on track toward achieving your investing and savings goals. Sethi gave the following six examples you can use to gauge your money problem scenarios.
- You always order the second-least expensive dish on the menu.
- You have a million-dollar home but won’t turn on the air conditioner.
- You log into your bank accounts every day.
- You worry a lot about how much taxes other people pay.
- You make $200,000 a year but your closet is filled with fast-fashion pieces you never wear or don’t donate.
- You refer to money as “evil” and tear down anyone attempting to make more of it.
How To Turn Your Pink Flags Green
In order to avoid your pink flags indicating money problems into full-blown red flags, you have to start asking yourself some questions and making a financial plan of action. To get started Sethi recommended you ask yourself the following:
- Am I doing the right thing with my money?
- How do I start investing?
- How can a person like me become a millionaire?
- How do I stop worrying about money?
- Will I ever have enough?
Don’t put off making a plan for your money. That means you need to start strategizing today, not tomorrow or next week, as the most consistent way to grow your wealth is over time. Sethi advised, “Without a plan, money feels scattered, cluttered … even overwhelming. Should you spend less on eating out? Are you investing the right way? Is it too late?
“But when you have a plan, you can breathe. You stop worrying. You’re calm. You know your money is working for you, automatically growing and letting you spend on the things you love — guilt-free.”
Final Take To GO
The bottom line is that in order to put a financial plan in place, you first need to pay attention to where you may need to make some edits. Everyone has a unique situation when it comes to their finances, but with a little curation and strategizing, you can make sure to avoid money problems and start making money solutions. Or, as Sethi said, “When your plan fits you like a handmade glove, that’s when you can use your money to live your Rich Life. That might be picking up your kids from school every afternoon, buying $1,000 cashmere sweaters, traveling 8 weeks every year or retiring early.”
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