We’ve all experienced some degree of financial guilt in our lives.
It’s that feeling when we realize that we shouldn’t have spent money on something or when we should have put money into our emergency fund instead of going on another vacation.
In this video James Lenhoff, President of Wealthquest, talks to us about how we can overcome the feeling of financial guilt and learn from our financial mistakes.
Unfortunately, we often hide our financial mistakes from our families and loved ones. If we hide these mistakes for too long though, the guilt associated with them turns into shame.
The problem with shame is that it makes you believe that there’s something wrong with you as a person because of the mistakes that you made. It can be very difficult to escape from this type of toxic self-judgment because it makes you isolate yourself from your loved ones.
How to Overcome Financial Guilt
The best way to pull yourself out of this spiral of shame is to be vulnerable. Instead of isolating yourself when you feel ashamed of your financial mistakes, you have to lean into your loved ones and share your feelings more openly with them. You also need to have these honest conversations with your financial advisor.
Secondly, try to keep things in perspective when you think about your mistakes. We tend to blow things out of proportion and say that such and such a mistake is the worst thing to ever happen in our lives. This is often not the case, so avoid the tendency to catastrophize your mistakes.
Lastly, take the necessary steps to move forward and fix your mistakes instead of dwelling on them for too long. You can only grow if you objectively examine your mistakes, learn from them, and make a plan to prevent them from happening again.