7 Key Signs You Need To Be More Involved With Your Money

Personal finance can be stressful for many, and it’s easy to avoid the subject altogether. We have enough going on in life that brings us stress, so we may want to limit how much we think about our finances. Unfortunately, you can’t ignore this topic, and it’s crucial that you are actively involved with your money to prevent issues that may arise.

What are key signs you need to be more involved with your money?

“Operating without a budget or a clear financial plan is a critical sign of neglecting one’s finances,” said Staci LaToison, founder and CEO of Her Money Moves. “It can lead to impulsive spending, insufficient savings and a lack of direction in achieving your financial goals.”

If you don’t have a budget, then you likely don’t have a plan for your money. This means that you don’t know where your funds are going. You won’t be able to build up your savings or reach any financial goals until you figure out what’s happening with your money in the first place. 

“Many of us don’t grow up talking about money, yet every single day of our lives, we’re faced with financial decisions for which we are often unprepared,” remarked LaToison. 

The harsh reality is that many of us are worried about having uncomfortable discussions about money, and this holds us back. We can’t address our problems if we’re unwilling to acknowledge that they exist. We have to engage in challenging conversations with our loved ones so that we can get better with our finances. 

What’s the good news? LaToison brought up that it’s never too late to change that.

“Starting today, you can take the helm of your financial future with intention and strategy. Dreaming bigger and investing in yourself is the first step towards empowerment. By taking control of your financial wellness, you’re not just securing your future but also setting a foundation for prosperity that can benefit generations to come.”

“Carrying high-interest debt, such as from credit cards, without a strategy to pay it off, is another common pitfall,” pointed out LaToison. “The harder you struggle without a plan, the deeper you sink, as interest piles up and your financial freedom fades.”

If you’re carrying credit card debt or if your bills are stressing you out every month, it’s time to become more involved. You’ll want to think of a game plan to finally start paying off your debt. 

If you’ve just entered the workforce but still rely on your parents, it may be time to learn more about personal finance. You can’t rely on your parents forever, and you want to learn about the basics of money management to become independent. The sooner you get involved in your money, the sooner you can make decisions without worrying about what your parents will say.

If your partner handles all of the finances, you’ll want to take the time to learn more about the financial situation. It’s crucial that you get involved with the money so that you’re aware of important decisions impacting your future. You’ll want to ask questions and look into the household budget to ensure you’re on the same page. 

If you’ve automated all of your expenses over the years by following the strategy of ‘set it and forget it,’ it might be time to get more involved with your finances again. While it makes sense to automate your bills from a simplicity perspective, you want to ensure that your expenses still make sense. It’s critical to review your expenses regularly so you’re not paying for subscriptions you no longer use. 

If you don’t have any financial goals, it’s time to start getting more involved. Without goals or direction, getting motivated about saving up is difficult. You have to find a reason to get excited about money management so that it’s not something you dread.

So what are some financial goals worth setting?

• Plan to pay off your debt.
• Build up an emergency fund with at least three months’ living expenses. 
• Fund your retirement accounts to plan for the future. 
• Save up for a trip.
• Cut out expenses that are holding you back from saving.

The best part of getting involved with your finances is that you can decide which goals you want to pursue based on your values. 

“Ignorance is NOT bliss when it comes to your finances,” LaToison concluded. These are the key signs that you need to take steps toward getting more involved with your finances. To gain better control of your life, you must get a handle on what’s happening with your money.”