Exorcise Your Financial Ghosts

We all have some financial skeletons in our closets—purchases, decisions, and behaviors that have derailed (or even destroyed) our fiscal well-being in the past.

Despite our best intentions, these demons can continue to haunt us, sucking the life from our bank accounts and blocking the path to our financial goals.

In the spirit of Halloween, I propose an exorcism: let’s call out each of these financial ghosts in turn, and banish them once and for all from our lives!

Debt. This is the biggest demon of them all. If you’ve sold your soul for a flashy car, designer handbag, or plasma TV, debt was your trade-off. You now have to suffer the hardship of trying to pay it off, as the interest charges snowball into ever-larger balances. Whatever you do, don’t ignore it—inaction will only make this ghoul more powerful and terrifying. Commit to paying it down, and do whatever you have to do to make that happen: give up your cable, go on a spending fast, eat beans, work a second job—you get the idea. And resolve to never, ever, ever let it into your life again.

Habit. This ghost is so pervasive, you may not even recognize it. But it can wreak havoc on your wallet, draining its contents for things like cable, mobile data plans, premium brands, overpriced insurance, and unnecessary services that you’ve already set up, or have become accustomed to. To get rid of this ghost, you’ll need to question all the recurring expenses in your life—just because you’ve “always” had cable, do you really need it? Can you lower your premiums by switching insurance companies? Does the grocery store down the street have better prices than the one you’re “used to?”

Guilt. This ghoul deviously disguises itself as gifts and generosity, usually meant to “make up for” some kind of transgression or lack of attention. It fuels spending on jewelry by straying husbands, toys by overworked parents, and lavish presents by friends who haven’t kept in touch as they’d promised. What the recipients really want, money can’t buy—and you can exorcise this ghoul as soon as you realize (and act) on that.

Indecision. If you’ve ever bought two of something because you couldn’t decide between them, or let extra money sit in a 0%-interest checking account because you couldn’t determine what to do with it, you may be haunted by indecision. It’s time to make some choices—waffling does little more than waste your money.

Ignorance. To get rid of this ghost, you need to get savvy! Don’t let ignorance be an excuse for poor financial decisions. Find out the best prices on the products you buy, and the services you need, and act accordingly. Learn the basics of investing, and how to get the best return on your money given your risk profile. Replace the words “I don’t know” and “I don’t understand” with “I’ll find out!”

Laziness. This ghost does a great job of protecting the others—because it takes real effort to change habits, make decisions, become financially-savvy, and save up for things instead of charging them. Exorcise this one, and you’ll have a much easier time destroying the rest. How to do it? By creating an action plan, and devoting the necessary energy and discipline to see it through.

Entitlement. If you’ve purchased a car, house, clothes, or electronics you can’t afford, better check under the bed for the ghost of entitlement. It’ll convince you that you “deserve” these things, and will encourage you to “fake it ‘til you make it.” It may even lead you to blame others when things go awry and you can’t make your payments. Foil this demon by ignoring the Joneses, living within your means, and only buying what you can comfortably afford with cash.

So while the kids are trick-or-treating this weekend, keep an eye out for ghouls and goblins of the financial kind. The sooner you recognize them, the sooner you can dispel them—and the less frightening it’ll be to open your next bank statement!