These Three Things Are Major Contributors to Your Current Money Problems

Building Wealth

By: Todd | Invested Wallet

Ah, money problems. Something majority of us have probably dealt with in some way or still are battling through.

Either way, it’s something all too common and there can be many causes to why you are struggling financially.

Of course, there are factors in life we can’t control and others we can when it comes to money. Unfortunately, you may have a few bad breaks in life that can be financially devastating.

But, out of all the money problems that are out there, I think there are three that are major contributors to my generation (Millennials) and younger.

Heck, even some older generations are affected by these as well.

The point is, a majority of people may not realize how much of a factor the below three are to their money problems and that yes, they can take control of these.

Common Causes to Your Money Problems

Before I get into the three major contributors to money problems, it makes sense to cover some common causes for your empty pockets.

No one likes to feel stressed or anxious about their finances. But, it is the most common thing people and families tend to worry about.

I won’t cover everything here, but these are a few money problems that come to mind and some I’ve dealt with personally myself:

  • Underemployed: Not making enough at your job to get by
  • Unemployed: Job loss and having trouble finding a good gig
  • Large amount of debt with high interest, whether student loan or credit card
  • Not preparing for retirement, whether lack of knowledge or lack of money to set aside
  • You don’t know where your money is going IE: not making a budget
  • No emergency fund for unexpected situations like job loss, sickness, home repairs, etc.
  • Overspending on a home, apartment, or car, thus taking on more debt

Like me, you may have also faced some of these as well. And there are plenty more that can cause your money problems.

However, there are three things I think that causes a good portion of our societies money problems and are areas we do have control over.

By understanding and correcting these, it may set you up to be prepared for those uncontrollable life events that hurt your wallet.

You Have A Consumer Mentality

It’s okay that you have the consumer mentality, in fact, it’s not really your fault. We are bombarded with advertisements whether through television, your phone, billboards, etc.

For example, digital marketing experts estimate that most Americans are exposed to around 4,000 to 10,000 ads each day! (Forbes)

The problem is unless you learn to break the mentality and adopt more of an investor mentality, you’ll find yourself overspending and needlessly upgrading your material things.

We focus on the items that we want for personal use, which will bring temporary satisfaction and happiness.

But, that wears off quickly, until the next thing catches your eye. You already know from reading that, that a vicious cycle of spending happens.

Clothing, phones, cars, computers, video games, etc. are all things that are okay in moderation, but these items depreciate in value and something many tend to upgrade constantly.

Many times it is on impulse, it excites you to buy, and brings you a sense of satisfaction.

But remember it is temporary and does it really make your life that much better? And the big one, it can really attribute to your overall money problems.

To starting correcting the consumer mindset, stop yourself and ask “Is this something I really need now?” Sleep on it and more times than not, the next day you’ll realize it’s not something you need.

You really need to sit back and crank out your spending from the last few months, the number may be shocking and the wake up call you need.

Social Media

It’s funny that I’m including social media here because I work in tech and also work for a social media type of company.

I see social media as good for businesses, building a brand, and great for marketing. But on the flip side, social media can hurt your pockets if you compare yourself to others.

Majority of people are on social media, in fact, close to half the world’s population (3.03 billion people) are on some type of social media (source).

Because of this friends and family are constantly in your social feeds, many are showing off new cars, clothes, dining out, traveling, etc. Now, you start comparing yourself to them and have an urge to upgrade and spend money you don’t have just to keep up.

You might laugh at the above because it sounds ridiculous, but I know plenty of people in this trap and then complain about lack of money.

Don’t worry what your friends or followers are doing, spending, driving, etc. Not only can it cause you anxiety, but you compare yourself to what they have then.

Half the time those friends are in debt themselves or spending money to put on a facade. Now you are trying to keep up and hurting your own finances. The key is to realize it and limit your social media if you think you can’t ignore others.

Too many people spend money they buy things they don’t want…to impress people that they don’t like.” – Will Rogers

Note: The Millionaire Next Door is one of my personal favorite books, which talks about the ones who have the least money problems are those who do not appear rich. Really great read, I highly recommend.

Financial Illiteracy

Lastly, financial illiteracy is a big reason for your current or past money problems. It was one that greatly affected me up until a few years ago, but correcting that has made a world of difference.

Case in point: two-thirds of American adults can’t pass a basic financial literacy test.

Again, not something I necessarily think is your fault, but is if you recognize your lack of finance knowledge, but still do nothing about it.

But here are some more alarming stats from this Forbes article:

  • 33% of American adults have $0 saved for retirement.
  • 38% of U.S. households have credit card debt.
  • 56% of American adults have less than $10,000 saved for retirement.
  • 43% of student loan borrowers are not making payments.

Why it’s not your fault:
There is no real financial education in our school systems. There should be a required course or two in high school and/or college that helps ensure you know basic concepts. This can include budgeting, investing, 401ks, credit cards, loans, etc.

Of course, thinking back to my high school self, I probably would have been pretty bored.

But again, it starts to set the foundation. If your parents didn’t have the knowledge or lack of interest, they aren’t able to pass this down to you as well. That cycle then continues.

Why it is your fault:
While financial education may not have been presented to you via school or your family, you can control how financially literate you are.

Even if you don’t like this stuff or know where to start, you have access to take control and learn.

Majority of people want to be successful in their finances, but when it comes down to putting in the time to teach yourself, excuses are made or Netflix is waiting.

I was taught basics of credit cards, savings, and 401ks, but not enough to fully set myself up for investing success.

It took reading a bunch of books and dedicating an hour or two a week to really become more financially savvy. And now, a lot of things are second nature to me, even though I’m still learning every day.

My money problems in the past and your current ones can primarily be from a lack of financial literacy. Get motivated to learn and many of your challenges with money can start to go away.

Do you agree? Disagree? Let me know in the comments below 👇

Republished with the permission of

Last modified: November 21, 2018

4 Responses to :
These Three Things Are Major Contributors to Your Current Money Problems

  1. Chris says:

    I know you are writing for a millennial audience in this piece, but you left out something very important in your entire article: your health. Medical bills are a major reason for declaring bankruptcy in the US. Luckily many of the millennials, including my children, enjoy good health, and are not affected by this. But it only takes one accident, baby born with special needs, etc., to see what I am talking about. This is even with good health insurance. Otherwise, I thought your piece had very interesting points.

    1. Great points Chris! I left that out because this was about money problems you can take control of, unfortunately, medical expenses can be out of our hands until we find a better solution so bills are not outrageous.

      But totally get where you are coming from. Thanks for reading!

  2. We started doing this stuff not so long ago and it works. Last year we retired and travelled around the world with our three kids. Two are teenagers. Slow and steady it will happen.
    Great article.

  3. I would add:

    1. You’re a scaredy cat!
    2. You’re a nice person but you’re hopeless.
    3. You’re an egotistical, know it all.
    4. Money is more important than anything to you.
    5. Money isn’t important at all to you.
    6. You don’t have a sense of urgency.
    7. You’re a control freak.
    8. Failure and frustration gets you down.

    Just say’n…..

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