Have you ever wondered why we sometimes avoid doing really important things? You’re not alone! Even adults struggle with this. We often put off tasks that truly matter, like managing our money, because they feel big, scary, or overwhelming. But the truth is, handling money wisely isn't as hard as it seems when you break it down into simple steps.
In this blog, we'll talk about why we avoid important tasks, especially with money, and how we can tackle them using an "Essentialist" approach. This means focusing on what truly matters most. Ready? Let’s dive in!
Why Do We Put Off Important Tasks?
Imagine you have a huge pile of homework. You know it's important, but instead of starting, you decide to play video games or watch TV. Why? Because facing that big pile feels overwhelming. The same thing happens with money tasks. We delay them because:
They Feel Heavy: Important tasks carry a lot of emotional weight. What if we mess up? That fear makes us avoid them.
Perfectionism: We think we have to do them perfectly, which adds pressure.
Fear of Failure: We worry about failing, so we don’t even try.
This is called inverse prioritization. It means the most important things often get pushed to the bottom of our to-do list because they seem too hard.
But here’s the good news: We can beat this by understanding the problem and taking small, simple steps to manage it.
The Four Big Money Tasks You Shouldn’t Ignore
When it comes to personal finance, there are four key areas we should focus on: Grow, Protect, Give, and Live. Let’s break each one down so it’s easy to understand.
1. Grow: How to Make Your Money Work for You
Growing your money means saving and investing so it can increase over time. But why is this so hard?
The Challenge:
We like to spend money now instead of saving for later. This is called present bias. It’s like choosing candy today over waiting for a whole cake tomorrow.
The Solution:
Automate Your Savings: Instead of deciding to save money every month (which is easy to forget), set up automatic transfers. It’s like a robot that saves money for you without you having to think about it.
Start with Your 401(k): If your job offers a 401(k), put money into it, especially if your company matches your contribution. That’s free money!
Save First, Spend Later: Treat savings like a bill you must pay every month.
Why It Matters:
Saving regularly builds a safety net for your future.
It reduces stress because you know you have money set aside.
2. Protect: Keeping What You Have Safe
Protecting your money means preparing for unexpected events, like accidents or emergencies.
The Challenge:
Fear of the Unknown: We don’t like to think about bad things happening, like getting sick or losing a job. So, we avoid planning for them.
The Solution:
Get Insurance: Life insurance, health insurance, and even car insurance help protect you and your family.
Emergency Fund: Save 3-6 months’ worth of living expenses in case something unexpected happens.
Plan for the Future: Even though it’s tough to think about, having a will ensures your loved ones are taken care of if something happens to you.
Why It Matters:
Being prepared gives you peace of mind.
It helps you recover quickly when life throws surprises your way.
3. Give: Sharing What You Have
Giving isn’t just for rich people. It’s about sharing what you can to make the world a better place.
The Challenge:
We Think We Don’t Have Enough: Many people feel they need to be rich to give back.
It Feels Overwhelming: Choosing where or how to give can be confusing.
The Solution:
Start Small: Even $5 can make a difference. It’s not about the amount; it’s about the act of giving.
Give Your Time: Volunteering is just as valuable as money.
Plan Your Giving: Set aside a small part of your budget for causes you care about.
Why It Matters:
Giving connects you with your community.
It brings joy and a sense of purpose.
4. Live: Enjoying Life Today and Tomorrow
Many people think managing money means giving up fun. But the opposite is true. A good financial plan helps you enjoy life now and later.
The Challenge:
Focusing Only on the Future: Saving is important, but so is living your life today.
The Solution:
Budget for Fun: Set aside money for hobbies, vacations, or date nights. This makes life enjoyable while staying financially responsible.
Follow the 2-2-2 Rule: Go on a date night every 2 weeks, take a short trip every 2 months, and plan a bigger vacation every 2 years. This keeps life exciting and strengthens relationships.
Why It Matters:
Money should help you live a happy, meaningful life.
Balancing fun with savings reduces stress.
Why Managing Money Feels Hard (And How to Make It Easier)
Managing money isn’t just about math. It’s emotional! We feel scared, overwhelmed, or even embarrassed. Here’s how to make it easier:
Break Big Tasks into Small Steps: Don’t try to do everything at once.
Automate When You Can: Let technology do the work.
Ask for Help: Talk to someone you trust, like a financial advisor or family member.
Celebrate Small Wins: Every little step counts. Did you save $20 this month? That’s a win!
Final Thoughts: What’s the Most Important Task You Can Do Today?
Managing money isn’t about being perfect. It’s about taking small, smart steps. So, ask yourself:
Have I started saving, even just a little?
Do I have a plan to protect myself and my family?
Am I giving back in a way that feels meaningful?
Am I enjoying life while planning for the future?
If the answer is no to any of these, that’s okay. Just pick one small thing to do today. Maybe it’s setting up an automatic savings transfer. Maybe it’s calling an insurance agent. Or maybe it’s planning a fun family outing without breaking your budget.
Whatever it is, start now. Your future self will thank you!