Avoid these 5 Financial Mistakes Regardless of intelligence

Linda  Formichelli from CNBC wrote an article, “Five Money Mistakes Even Smart People Make” which highlights 5 items that she thinks “even smart people” make mistakes.  I don’t really get the title (other than to get readers – it worked for me), I don’t think intelligence (a term hard to define) correlates with personal finance. Think about how many amazing doctors, lawyers, etc., completely fail when it comes to their personal finances.

Regardless of my confusion she provides a pretty good list:

  1. Money mistake No. 1: Minding the pennies and missing dollars – I know so many people (myself included) that does this…I’ll drive 7 miles away, to sit in line at BJs, just to save 10 cents on gas, but then after filling up my car, I’ll go to dinner with 2 other couples and spend plenty of Dollars!
  2. Money mistake No. 2: Being confused by credit reports – While a basic knowledge of this subject is necessary, I don’t completely agree with her.  Check out – Tough Money Love he’ll set you straight on credit reports.
  3. Money mistake No. 3: Letting budgeting get you down – Ms. Formichelli offers great advice here, “Do spot budgeting” pick a few areas to focus on each month and everything will fall in line.  I like it!
  4. Money mistake No. 4: Letting your money leak away – “Write [your purchases] down” – her example of money leak; a chocolate bar??? Doesn’t this go in direct contradiction of the previous money mistake.
  5. Money mistake No. 5: Being out of touch – She could have named this one a little better.  Ms. Formichelli is referring to keeping in touch with your partner.  I CAN’T ARGUE AT ALL! YOU NEED TO TALK TO YOUR PARTNER.

Not an original list, but one to review from time to time

2 Responses to Avoid these 5 Financial Mistakes Regardless of intelligence

  1. Mr. ToughMoneyLove says:

    Thanks for the mention. I look at my credit reports annualy (for free) to check for identity theft but I never look at my credit score. People are obsessed with credit scores which is exactly what FICO, TransUnion, and the rest want to happen. Don’t let them do it to you.

  2. My Journey says:

    @TML,

    @ TML,

    First, sorry for the mistake as to my paraphranse (I knew what I meant but didn’t express it well).

    Regardless, I feel like the situation is an egnima/self fulfilling prophecy…I try not to care about my FICO (sort of)but everyone (i.e. lenders) else does

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