seven deadly sins

How to Rise Above Financial Jealousy

Paul Michael — Fri, 23 Jun 2017 09:00:10 +0000

Financial jealousy usually comes from judging a book by its cover, and seeing only one side of the story. You see a successful person driving a fancy sports car and the envy monster comes out. Or, you have a co-worker who is always wearing new clothes, new accessories, and carrying the latest gadgets. Your mind works overtime creating a perfect life around that facade.

But really, you don't know the half of it. That person could be completely miserable, and may be caught in the downward spiral of retail therapy. They could be massively in debt. They might also work 90-hour weeks at multiple jobs, giving them very little time to enjoy the fruits of their labor. There are two sides to every story, and chances are, you barely know anything about either. So when you start feeling those pangs of envy, here's how to rise above. (See also: 6 Ways Envy Is Keeping You Poor)

Remember that the grass is not always greener

There is a scene in the movie The Firm that sums this up perfectly. After becoming embroiled with a mafia law firm, Tom Cruise's character is fighting to stay alive. He's wealthy, he has everything he ever wanted, but his life is all but over. At one point, his wife says, "Let's put the books away, pretend we're back in our old, beat-up apartment, broke, and we find some money we forgot in pockets. We'll send out for pizza. Drink beer. And watch Star Search." Times were better when they were struggling, because their happiness did not come from money and possessions; it came from each other.

Someone else may look like they have the perfect life, and never struggle, but money is not the answer to everything. They may even be envious of you, your life, and your relationship with your family and friends.

Ask yourself why you're so jealous

Sometimes our gut reaction to seeing the wealth of others is to instantly think, I wish I had that. The next time that happens, follow it up with, but why do I want that?

Let's take the guy with the super expensive sports car. Sure, it's flashy and can do 220 mph. But when can you ever go that fast on American roads? Do you know what kind of mileage it gets? Chances are, it's one horrendous gas guzzler. The maintenance on those cars is prohibitively expensive. The tires cost a fortune, as does the insurance. And then there's the fear of leaving it anywhere it could get scratched, dinged, or stolen.

Your current car may not be flashy, but it does the job, it's reliable, and you don't worry about it when it's not parked safely in your garage. And this is just one example. Houses, expensive clothes, jewelry, gadgets, and designer trinkets can consume you. Consider that the next time you see someone driving a Lamborghini.

Look at what you already have

According to the U.S. Census Bureau, the average household income in 2014 was $73,298. If you plug that into the website Global Rich List, you can see how you compare to the rest of the world; the result is staggering. With an income of just under $74k, you are in the top 0.11 percent of the richest people in the world. Raise that to $100k and it becomes 0.08 percent. Think about that for a second.

Many people have limited access to clean drinking water and healthy meals. For some, health care is nonexistent. Many people live in shanty towns, are homeless, or struggle to put food on the table every day. When you find yourself wishing for things another person has, consider that you are wealthy in the grand scheme of things. Let's not forget, we live in a society that eats food before and after a main meal. Appetizers and desserts are commonplace for us, but exorbitant luxuries for many. Perspective is everything.

There are more important things in life than money

When someone says, "Money cannot buy happiness" your natural reaction is to respond with something like, "Well, it sure makes things a lot easier." And that's true. Money can buy travel, shelter, and experiences. It can give you peace of mind. But, it cannot buy the most important things in our lives. Health, for instance. Imagine waking up tomorrow to find out you or a loved one is very sick. Your financial jealousy immediately flies out of the window. Who cares if Mr. Jones has a brand-new BMW? You just want good health for yourself or your loved one.

Money cannot buy real, unconditional love. Possessions can bring happiness for a little while, but most of them become next year's Goodwill donations or eBay sales. When we have the love of wonderful people, great health, enough to eat and drink, and plenty to laugh about, we are rich indeed. (See also: 5 Reasons Being a Millionaire Is Overrated)

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This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Flashback Friday: 42 Ways the 7 Deadly Sins Are Keeping You Poor

Chrissa Hardy — Fri, 17 Feb 2017 10:31:32 +0000

It turns out, most of us are a bunch of sinners. And those sins we commit regularly might be the sole reason for our financial struggles. Whether it's feelings of lust, greed, gluttony, or the others, those feelings lead to making terrible financial choices. How, exactly? Let's find out.

6 Ways Gluttony Is Keeping You Poor — Of course it's okay to overindulge on food and drink every once in awhile, but that can lead to celebrating with food and drink, and then commiserating with food and drink, and then eventually you're overindulging all the time and your wallet is empty. That's not great.

6 Ways Sloth Is Keeping You Poor — When you're feeling lazy, your motivation to do pretty much anything is nonexistent. As with any of these sins, a little is fine. But consistent instances of slothlike behavior can ruin your career, and your earning potential.

7 Ways Pride Is Keeping You Poor — Pride is a tough sin to beat. We all want to put our best face forward. Isn't that why we're all on social media? But when you're putting all your energy into maintaining a certain lifestyle, your finances can take a serious hit.

6 Ways Lust Is Keeping You Poor — When you're lusting after someone or something, it's hard to think straight. You might be sober, but your decision-making ability is drunk and needs to go home. You'll make impulse decisions that won't make any sense, and could ruin your budget, and your life.

6 Ways Envy Is Keeping You Poor — Similar to pride, envy is all about comparing yourself to others in an unhealthy way. Who cares what other people have though? Envy will never lead to happiness, so keeping up with the Joneses will only make you miserable in the end — and broke.

5 Ways Wrath Is Keeping You Poor — There's nothing wrong with being a deep-feeling, passionate person. But wrath is the extreme and destructive end of that spectrum, and it will ruin you, as much as it will the object of your wrath.

6 Ways Greed Is Keeping You Poor — For people suffering with greed, less is never more. This sin can lead you to a life of excess, extreme debt, and becoming the kind of person who lies so much that the truth becomes "fake news." And who wants to be that person?

This article is from Chrissa Hardy of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

6 Ways Lust Is Keeping You Poor

Paul Michael — Tue, 14 Feb 2017 10:01:04 +0000

When you hear the word lust, your mind naturally wanders to sexual desire. But lust goes way beyond that. At the heart of lust is an intense longing for something, be it sex, money, power, possessions, knowledge, war, experience, or as the song goes, life. Sometimes that intense longing is a great motivator, and can drive you to do great things. However, it can also be the root of some serious money problems. Here are seven such examples. How many do you recognize?

1. It Drives You to Buy More Than You Need

An insatiable lust to have the latest, greatest gadgets, clothing, shoes, and other possessions, can leave you in serious financial trouble. For some people, it's not enough to have a good phone. It needs to be the newest model, even if that means replacing a model that's barely six months old.

Other people get a rush, and a release of endorphins, when buying new products. They feel a sense of great joy, a thrill, when they purchase items like jewelry, watches, cars, and purses. That thrill, much like the pleasure felt when drinking alcohol or smoking a cigarette, can become addictive. You want to replicate it, and have to keep doing so over and over again. TV shows like Hoarding: Buried Alive have featured people that have rooms filled with clothing, shoes, coats, gadgets, and jewelry that have not only never been used… they were not even taken out of the shopping bags.

2. It Can Lead to Destructive Addictions

At a base level, lust for sex and sexual imagery has become an increasingly dangerous problem in the U.S., and around the world. Easy, instant access to X-rated materials on the Internet has led to thousands of cases of addiction to this highly stimulating resource. And while it is free on some levels, it can become expensive, especially with monthly subscription fees and webcam model charges. What's worse is that this addiction can spill over into other avenues of life. People become so obsessed that they look up materials at work, leading to disciplinary action and job losses. Relationships suffer, and the abuse of alcohol, marijuana, and even food, leads the addict into a spiraling cycle of defeat and depression.

3. It Can Severely Cloud Your Judgment

When engulfed by lust, your brain is not thinking clearly. And again, this is not just about sexual desire. A prime example of this can be found at any auction, when several people want the same item, and a bidding war breaks out. People who are normally of very sound mind, and who set a price they would not go over before the auction, lose their common sense. They want it. They have to have it. They will go over their limit by hundreds, or even thousands of dollars. Some have described the experience as being in a euphoric fog, which clears and makes way for shame and regret once the furor has died down. You may have experienced something like this yourself, especially if you've done a little gambling in Las Vegas. Lust for money, sex, and power can all lead to some very muddy thinking.

4. It Consumes Your Valuable Time

Lust is one of the seven deadly sins that can utterly consume your every waking moment. When you are gripped by lust, nothing else matters. Indeed, the very definition of lust contains words like "uncontrollable desire" and "inordinate cravings," neither of which can be viewed as positive. People under the spell of lust will find themselves constantly performing actions that keep them highly focused on the object of their intense affections, be it a person, a possession, or a promotion. Nothing else matters. Your life, and your existence, bows down to this one overwhelming drive, and you can find it very easy to block out all other aspects of life. Bills don't get paid. Loved ones go ignored. Your performance at work suffers. Your time is being eaten up by one thing, and that can only lead to a loss… in more ways than one.

5. It Makes You Do Things That Are Out of Character

Someone obsessed by a deep desire for something will start to make decisions that are surprising, or even shocking to friends and family. You have no doubt witnessed it yourself. Perhaps a good friend became infatuated with someone at work, and started to do things that were way out of character; for instance, spending more money on items and pastimes that they would never have done a few months earlier. This is lust at its darkest and most dangerous. When you really want something; when nothing else matters; when the pursuit and possession of something is your only goal; that's when you can momentarily lose yourself and in the process, lose friends, money, opportunities — even your job.

6. It Can Literally Destroy Your Life

That may sound dramatic, but it's a sad fact. Every year, thousands of people around the world find their lives in ruins due to the domino effect of lust. For some people, they get embroiled in the highly addictive world of adult websites, forking over monthly fees and exposing their credit cards to some very sketchy businesses. Identity theft is common when the victim is engaging in an activity they would rather not let other people find out about. It can be embarrassing to report, and even harder to pursue a claim. Other people lust after things they just cannot have, and get into debt, gamble, take out payday loans, and find themselves in a world of financial hurt. And then there are those who lose friends and family, which can lead to substance abuse and other forms of hardship. At the end of the day, lust is dangerous because it controls you, way more than any other sin. If you don't spot the warning signs early enough, you could find yourself in serious trouble.

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This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Ways Wrath Is Keeping You Poor

Paul Michael — Thu, 20 Oct 2016 09:00:08 +0000

Our series on the seven deadly sins has looked at gluttony, greed, envy, sloth, and pride. Now, it's time for wrath. The word itself is not often used in everyday speech, but the definition on dictionary.com tells us it is: "strong, stern, or fierce anger; deeply resentful indignation; ire; vengeance or punishment as the consequence of anger." Wrath is an extreme emotion, and a negative one. And when you hold onto an emotion as powerful as wrath, you and your finances can suffer the consequences. Here's how.

1. It Keeps You Focused on the Wrong Things

You may have many legitimate reasons to be angry. Maybe someone betrayed you at work, and took your promotion. Or, got you fired. Perhaps you were not given a deal you were promised, or you are just severely angry with your current lot in life. Whatever it is, it's not helping you to move on and be successful. Holding in this kind of anger and resentment takes a lot of time and energy, and it's all negative. But if you can instead get past the anger and hostility, and channel your energies into something good, you'll do a lot better financially.

2. It Can Make You Ill

The occasional outburst of anger is fine. If it's quick, and results in releasing some pent-up frustration — a punching bag can be a good investment — it can actually be good for you. But holding in anger, and resenting people, can have negative consequences on your health. As we all know, being unhealthy in America can be an expensive proposition. Anger can weaken your immune system, with a recent study showing that recalling experiences that made people angry caused a six-hour dip in the antibody immunoglobulin. Anger is also a very stressful emotion, and the additional stress on your heart and other vital organs can take a serious toll. Deep-seated anger can turn into a deep depression, and that, too, can have devastating effects on your body and your health. Any and all of these issues can be expensive to treat, and when you're ill, you are not going to be as successful as when you're in good health.

3. It Clouds Your Judgment

People who experience wrath may not literally "see red" (although there is evidence that it can happen), but there is definitely something muddying their thought processes. When you're filled with anger and resentment, you are more likely to be impulsive, and react without thinking things through. For instance, snap-judgments on purchases can have long-lasting effects on your financial situation, and may even result in situations that decrease your credit score. There are also issues with acting out at people, and this could lead to problems at work, at home, or with friends. Any decisions you make while suffering from this kind of negative emotion may be completely out of character, and you will have to live with the consequences long after wrath has left your life.

4. It Can Ruin Your Career

You do not want to be "that guy" or "that woman" in the office. You know the one. He walks around muttering to himself all day. He flies off the handle. He is bitter and angry in every conversation or meeting. And honestly, his work isn't all that good. Clients don't like meeting with him. He takes criticism poorly. Everyone knows, he'll be let go soon enough.

It can require a long, hard look in the mirror to know if you are becoming that person. But you should already know, deep down, that things at work are being affected by your resentment and bitterness. If people are going out of their way to avoid you in the halls, or you're having trouble concentrating because you're so angry, then you know wrath is taking its toll. Hopefully, it's something you can catch now, and reverse the trend.

5. It Can Have Legal Implications

Being angry is one thing, but when it turns into the search for vengeance, you could be on the shaky path to breaking the law. It could start out as something harmless, such as sending someone an anonymous letter (which, to be fair, is never harmless to the person receiving it, despite what they may have done). But as you are gripped by wrath and revenge, your judgment will be affected, and you may find yourself doing things that are not even close to legal, like vandalism, harassment, perhaps even physical violence. This can, and will, lead to arrest and conviction. Once that's in your life, nothing will ever be the same again. It can destroy your relationships, your job prospects, and eat into whatever savings you may have. Your actions could affect many people in your life, and aside from the financial costs of hiring a lawyer and going to jail, the emotional scars will last a lifetime.

This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

6 Ways Gluttony Is Keeping You Poor

Paul Michael — Thu, 25 Aug 2016 09:00:05 +0000

This installment in our series of deadly sins speaks to gluttony, and it's important to know how it differs from greed. The two are related, but greed is more of a miserly, selfish sin. You hoard. You acquire. You amass wealth. Gluttony, that's a different animal. Fundamentally, it's all about self-control, or the lack of it. You eat more than you should. Drink more. Spend more. Want more. Waste more. And as you are about to see, gluttony can also keep you poor.

1. You're Buying Way Too Much Food and Drink

Let's start with the most obvious place that you're losing money, and that's on food and drink. If you are a real glutton, you're going to be spending a huge portion of your income on what goes in the fridge and the pantry. Food, food, glorious food, but, way too much of it. From overloading the cart when you go to the grocery store, to eating the whole pizza when a quarter of it would have been fine, your indulgence in food and drink is costing you big bucks.

One of the best ways to deal with this is to limit portion sizes by using smaller plates, and to shop using a list of only the items needed. Also, don't go back for seconds when you can save that food and have it as a meal the day after.

2. Your Over-Indulgence Is Affecting Your Health

Directly related to eating and drinking too much is health care costs. It's widely-known that the costs for treating obesity in this country are staggering. Medical costs alone come to over $192 billion in the U.S. alone, and that is only continuing to rise. When you're obese, or just overweight, you are increasing the risk of getting many diseases and conditions, including: high blood pressure, high cholesterol, type 2 diabetes, coronary heart disease, stroke, sleep apnea, some cancers, depression, gallbladder disease, osteoarthritis, and body aches and pains.

While some conditions are more serious than others, if you get them, you're talking about paying for doctor's office visits, hospital stays, medications, and therapy (both physical and mental). As the cost of health care skyrockets, you do not want to be paying more and more every year because you lack self-control. It's not always easy to hold back, and diets are no fun. But the alternatives are not just expensive, they can be deadly.

3. Your TV Habits Keep You From Reaching Your Potential

A new phrase entered our vocabularies over the last few years: "binge-watching." It is the TV equivalent of eating an entire pizza in one sitting, and although it may not be as bad for your health as that kind of gluttonous act, it's also not doing you any favors.

Sure, bingeing the occasional show every now and then is fine. But if you find yourself bingeing series after series, week after week, you are spending way too much time in front of the TV.

This leads to "checking out" of more healthy activities, like hiking, cycling, swimming, gardening, and spending time with friends. And it also hinders your career and lifestyle. What else could you be doing with that time? Could you be studying to get a promotion or raise? Could you be organizing your finances? Think about the time spent in front of the TV, and how cutting back could make a difference.

4. Binge-Drinking Can Be Dangerous

Although binge-watching is a new term, binge-drinking has been around for centuries. In certain cultures, especially England (where I'm from), binge-drinking seems to be an accepted part of life. You work hard during the week, then on Friday and Saturday nights you go out and get absolutely hammered. And you can spend a lot of money doing it.

The physical effects of binge-drinking are bad enough. Too much alcohol can put a lot of stress on your heart, stop your breathing, affect your memory, or make you vomit in your sleep (many people have died this way). But when drunk, you can do things that have a negative impact on your home life, and your career. It is not uncommon for people to be fired after saying or doing things on a night out that they would never do sober. In this day and age, you could seriously damage your career after a binge-drinking night on the town.

5. More Food Means More Waste

Aside from spending large amounts on food and drink, there is another byproduct of shopping for too much grub. Waste.

Gluttonous habits in grocery stores can lead to you filling the shopping cart with items you want because they look good. Without sticking to a shopping list, you can easily pile your cart high with items you don't need, and stack them in the pantry and fridge with little hope of eating them before they expire. That is literally cash in the trash. So buy what you need, and what you can freeze — no more. Even if it's a crazy good deal, spending only $5 on a prime piece of steak is not a savings if the steak then expires and goes in the garbage.

6. Impulse Purchases and Deals Are a False Economy

Most of us love a good bargain. But without self-control, the dazzling deals you see getting served up every day can drain your bank account, and lead to spiraling debt. Remember, deals are only deals if you needed the item in the first place.

For example, if you're looking for a new washing machine, and see an ad offering one for 30% off, then congratulations, you found a great deal. But if, at the same time, you see a dishwasher on sale for 30% off, but your current one is just fine, then that's not a bargain. That's just gluttony. You see it. You like it. You want it. You buy it. It doesn't just apply to the big-ticket items, either. Grocery stores use techniques to erode your self-control (like buying 10 items for a $1 each, when you only need two costing $1.50 each). Before you know it, you're over-budget, and stockpiling a lot of items that may never get used. So, before you act, think. Do I need it, or do I just want it because it's on sale?

What other gluttonous habits are keeping you poor? Share with us!

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This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

6 Ways Greed Is Keeping You Poor

Paul Michael — Fri, 03 Jun 2016 10:30:05 +0000

Greed is a particularly ugly sin. While there are positive characteristics of pride, or even envy, it's almost impossible to use greed in any way that isn't an insult. It conjures images of fat cat CEOs hoarding millions, while their workers earn minimum wage. But although Ebenezer Scrooge and his ilk are portrayed as misers with serious money, greed can sometimes make you poor. Here are six examples of the way greed can eat away at your pot of gold.

1. Wanting It All

Not content with their lot in life, some people look at all those things they could have that make life even better. Or so they think, anyway. The latest smartphone. The upgraded car. The bigger house. The 80 inch flat screen TV. The huge deck. The patio. The yacht. Sadly, all those expenses have to be paid, and it can lead to crippling credit card debt, loans that cannot be paid back, and the eventual loss of everything to pay back creditors. As Tyler Durden famously said in Fight Club, "the things you own end up owning you." So, be very wary of greed. Happiness from those items is fleeting anyway.

2. Living to Excess

More wine. More beer. More junk food. More everything! When greed manifests as the intense and selfish desire for food and drink, it can lead to a plethora of health problems. And as we all know, health care can be very expensive in the USA. Overeating, leading to obesity, is responsible for as much as $210 billion in healthcare costs in the United States. An obese adult spends 42% more on healthcare than someone with a healthy weight, and obesity can lead to many other illnesses.

Then there's greed that turns to alcoholism, or drug abuse. While there are definitely other factors involved, including depression and other mental health issues, greed can contribute to a whole host of health problems from drug abuse. Recovery can be costly. And then there are the other problems stemming from an excessive lifestyle, including time taken off work, a lack of drive or motivation, and the sheer expense of maintaining that kind of diet.

3. Breaking the Law

Greed can make people do some strange things, which leads to committing unlawful acts. This does not mean they go out and rob banks, or scam people out of their savings online. It's more that they see an opportunity to make a lot of money for doing something they believe is harmless, albeit illegal. And then, they get caught, and face a prison sentence and a career in ruins.

One example is Scott London, a once successful audit partner at a huge accounting firm. He was earning $900,000 a year, but it appears that wasn't enough. London decided to start selling sensitive information about some of his clients to a friend. This is known as insider trading, and it's against the law. Although he made just $70,000 from the deals (a lot for most of us, but for him, a drop in the bucket), he was caught by the FBI and sentenced to 14 months in prison.

However, for others, it may be something smaller that leads to the poor house. Cheating on taxes, even just for a few bucks, is a federal offense. And shoplifting as little as three belts, or a couple of jerseys, has landed people in prison for life.

4. Avoiding Generosity

There is a misnomer that every rich person is greedy, and every poor person is not. This is actually not true, and financial guru Robert Kiyosaki has devoted a one-hour radio show on this subject that is well worth listening to. The basic idea is this: Having a generous spirit, and giving back to the world, will pay dividends. Investing in people, and in projects that have real potential, will reap rewards. On the other hand, hoarding your possessions, never giving to charity, and stockpiling wealth is not a positive way to manage money. Being generous, and doing good, can build much greater wealth than saving every penny and watching it grow a few percent a year in a bank account.

5. Gambling Away Everything

You know the stories. You've seen the movies. Gambling can bring people great wealth in just a few seconds. But, for the vast majority, it's a losing proposition. Couple gambling with greed, and you have a recipe for tragedy just waiting to happen. Every year, millions of people try and get lucky, and for most, it's just a flutter. Win or lose, they walk away. But 2% of people who gamble get seriously addicted, and greed takes over. A win becomes an adrenaline rush. They want more. And more. They want to see the dollar signs multiply. Before they know what's happened, they have lost everything trying to win back the money they once had.

6. Finally… the Impact of Corporate Greed

Sadly, it's not personal greed, but corporate greed that is having an impact on our wallets. And in some instances, it keeps people in poverty. From the greedy politicians who take cash to vote against the public interest, to the outsourcing of jobs to other countries, America has a serious greed problem. Many of us feel it a little, here and there. But for some, it's the cause of great hardships.

One recent example comes from Wendy's. After the recent minimum wage hike, and plans to raise it to $15/hour, the fast food giant responded with automated self-service kiosks. "We continue to look at initiatives and how we work to offset any impacts of future wage inflation through technology initiatives, whether that's customer self-order kiosks, whether that's automating more in the back of the house in the restaurant," said CTO Todd Penegor (who was compensated over $3 million in 2014). The moral of this story — demand a living wage and you're out of a job.

The defenders of this say that these jobs are entry-level, but with so many manufacturing jobs going elsewhere, and the employment of low-wage workers who do it "cash in hand," it's getting harder and harder to find a decent paying job that doesn't require an education and a ton of experience; something many people never had the chance to get.

Of course, the massive financial meltdown in 2008 was also caused by massive greed, and that impacted millions of homeowners and led to bankruptcies. It's safe to say that even if you are the least greedy person on the planet, you will still be affected by greed in your day-to-day life.

Has greed cost you? Tell us about it in comments!

This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

7 Ways Pride Is Keeping You Poor

Paul Michael — Mon, 23 May 2016 10:00:04 +0000

It's said that of all the sins, pride is at the forefront. Hubris, vanity, and the obsession with oneself can actually lead to the other six sins in the Deadly Sin lineup. But how can pride keep you poor? What is its impact on your financial well-being, and you future? These seven examples are a warning to us all.

1. It Makes You Spend More on Brand Names

There are brand names, and there are generics. Brand names cost more because you're paying for the marketing and advertising behind it, as well as the privilege of actually buying something with that label stuck to it. However, in most cases, brand names are almost identical to their generic counterparts. The only noticeable difference is the price tag. But some people are too proud to ever opt for the generic version.

The shame of having someone come over for dinner, only to see a loaf of generic bread, or a bottle of generic hot sauce can be enough to get people to spend money they don't have just for the brand name. To some, it's another way of saying, "I'm too poor to afford the brand name stuff." Well, who says you are? Wanting to spend money frugally is not the same as having no money to spend. It's just that you care what you spend your money on, and want as much bang for your buck as possible. Some millionaires and even billionaires will still insist on buying generics simply because of the principal that they don't want to spend one cent more than they have to. And that, after all, is how they became rich in the first place.

2. It Gets You Into Considerable Debt

There are some people who are known as "car poor." They drive around in huge, expensive cars that have the latest gadgets, spinning rims, and neon undercarriage lighting. But when they get home, it's to a house with very little furniture and no food in the fridge. They're car poor because they spend way too much of their budget on a vehicle, and all because they want to be proud of their ride. They wouldn't dream of cutting that payment in half by driving a used car with no modern conveniences.

Other people suffer the same problems with fashion, or technology. They may be house poor, choosing to live in a place with a crippling mortgage payment, because they simply cannot swallow their pride and lower their standard of living. Pride, in cases like this, can lead to bankruptcy. Isn't it better to sort the problem out before it gets to that point? Surely, if pride is an issue, filing for bankruptcy is a bigger hit to your ego than anything else.

3. It Stops You Getting Bargains From Thrift Stores

"I would never get my clothes and kitchen items from a thrift store. I am way above that." I actually heard someone say that when I told them about a killer jacket I got from The Salvation Army. And it's a rotten attitude to have. Thrift stores are not just for people who are really down on their luck. Everyone can, and should, shop at stores selling used goods. The simple reason is that they're way cheaper, and most of the time last as long as a brand new item anyway.

You can buy brand name items for a fraction of the price, and pick up electronics and appliances for pennies on the dollar. What's more, no one ever has to know where you bought the items from, unless you decide to tell them. So if pride is the only thing stopping you from opening the door to a thrift store, it's time to swallow it.

4. It Prevents You Receiving Financial Help

Some people are so proud, they will never accept a handout. Whether from friends, family, or the government, they would rather struggle than admit that they need charity. That is just not a good way to look at life. Government programs exist to help people in their time of need, and these safety nets can be an essential way for some people to get back on their feet. From unemployment benefits, to food stamps, and grants — the money is there for you.

Admittedly, some people (very few people) abuse the system. For them, it may be greed and sloth combined that is their downfall. But for everyone else, and especially those too proud to admit that they need help, remember why that help is there. Our society is one that is set-up to make sure people don't fall through the cracks and become another terrible statistic. It doesn't always work, but when financial help is offered, pride should not be a reason to turn it down. You can work hard to pay that back at a later date, and maybe then you'll be in a position to help someone else who desperately needs it.

5. It Enables You to Keep Making the Same Financial Mistakes

There's an expression most of us know all too well, "they're just throwing good money after bad." This is a prime example of pride affecting the way someone handles his or her finances. For example, when it comes to investing money, that person may have lost a fortune over the years on a business that keeps on tanking. And yet, despite the best advice, they continue to pour money down a bottomless hole. They're just too proud to admit that they made a mistake, and have a very bad investment.

Doing something over and over again at considerable cost, because you're too proud to admit any kind of poor judgment, is pride messing with your head. Whether you're throwing money at the same problem, the same way, or refusing to admit the problems with your budgeting, you're only hurting yourself. It's also a problem some gamblers have, covering losses with more money, and making bigger bets that lead to ruin. It's okay to step back, reevaluate and say, "No, this isn't working, it's time to pull the plug." Sadly, it's a lesson some people only learn when they're broke.

6. It Keeps You From Learning How to Manage Your Money

Pride can be a real barrier to knowledge. After all, who would want to admit that they don't know about the ins and outs of a 401K, IRA, or balancing a budget at the age of 40? Better to just keep guessing, making mistakes, and losing money than admit you need help, right? Well, of course not. Whatever age you are, be it 16 or 66, it's never too late to learn about handling your money. There are courses, online seminars, books, financial advisers, and a whole host of other options available.

There is no shame in admitting you need help with managing your money. In fact, it's something you should embrace, and quickly. Knowledge is power, especially when it comes to financial matters, and the more you know, the greater your success with money will be. So what if you feel a bit silly asking seemingly obvious questions. You are probably making way more of it than the person you're asking, and they will always be happy to help. Learn about investing. Learn about stocks and bonds. Learn about interest rates and tax plans. It's all leading to a better financial future. (See also: 5 Debt Management Questions You're Too Embarrassed to Ask)

7. It Makes You Pay for Things You Don't Need

A friend of mine was having some issues with his car, and so he took it into a local garage to have the problem checked out. The mechanic came back with a whole host of problems, and a list of work and parts that were needed. The bill came to over $2,000. When I asked him why he didn't ask for a second opinion, he said he didn't want to look foolish asking for his car back. He also didn't want the mechanic to think he couldn't afford it.

My response to both issues was… who cares? It's a mechanic, his or her opinion of you is not your concern. But what you spend your money on, and potentially overpaying for, that's a big concern. As it turns out, after reviewing the invoice, some of the work performed was definitely unnecessary and overpriced (it's good to have a mechanic in the family to ask about such things). If my friend had simply driven away and asked someone else, he would have saved over $800. But pride got in the way.

Whether it's work that needs done on a car, your home, an appliance, or anything else, never ever be afraid to walk away. That also applies to buying something new as well. Don't let pride force you into paying for something you really don't want. Saving face can actually cost you an awful lot of money. Remember, when in doubt, walk out.

Have you struggled with pride getting in the way of saving money? Share with us in the comments!

This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

6 Ways Envy Is Keeping You Poor

Paul Michael — Tue, 03 May 2016 10:30:04 +0000

There are seven deadly sins. Envy is perhaps the most soul crushing. Unlike greed, gluttony, sloth, pride, lust, and even wrath, envy can be debilitating. It can take over your every thought, and turn a once happy person into someone obsessed with another's possessions, qualities, or day-to-day life. Not only that, but there are financial implications, too. Here are six ways that the demoralizing sin of envy can keep you poor. (See also: 6 Ways Sloth Is Keeping You Poor)

1. Envy Gives You a Bad Attitude

Think of all the successful people that you know. From friends and colleagues, to famous entrepreneurs and stars, they all have one thing in common — they have a positive attitude. Sure, they may have their off days, but generally speaking, they're proactive, energized, and ready to get things done. They see the possibilities in life, and can turn the smallest opportunities into big successes.

Envy is not a positive emotion. Far from it. Envy can bog you down with crippling negativity. It can turn someone who was once a go-getter into someone who constantly complains and looks on the down side. That person will compare their life to people who have more. "Why can't I have that, I deserve it, it's not fair!" That will never result in a better life, a better job, or a brighter future.

By dumping the envy, and ignoring what other people have, you can instead focus on what you really want. Set goals, and stay positive. It will work wonders.

2. Envy Pushes You to "Keep Up With the Joneses"

Maybe the Joneses' are your neighbors. Maybe "they" are actually just one person, perhaps a colleague at work, or a member of the family. Whoever it is, keeping up with their lifestyle can become a journey into debt and misery.

For many, trying to have what someone else has, or go one better, puts a serious financial burden on them. They often don't have the financial resources that the other person has, so they will take out loans, max out credit cards, and even take on extra work just to keep up. But, it's never enough. In this situation, happiness does not come from anything being purchased, because it is all done for spite. In many cases, the items bring the envious party absolutely no joy; they are simply trying to one-up the object of their jealousy. Remember, you also have absolutely no idea how happy that person is. It may all be a façade.

It's never a good idea to judge your own worth by that of your friend or neighbor.

3. Envy Can Hamper Your Career

"Jane just got another promotion. That's four in three years… where's mine!?" If you've worked in any kind of corporate environment, or even in a job that regularly promotes its employees, you'll know that kind of statement all too well. It's envy, coupled with rage. It may seem unfair that someone is constantly getting promoted, but there is no way of knowing what is going on behind the scenes. Maybe Jane is working herself to death, and not enjoying the regular pay raises. Or, maybe Jane has made the company a substantial amount of money in that time. Even if those promotions are due to favorability by management, the end result is the same.

Envy can grip you, and prevent you from being a good employee. The focus is on what other people have, and what they are doing. The work suffers. In turn, the chances of being promoted yourself get slimmer and slimmer, until you may well be let go. Looking with envy at your coworkers is never going to end well.

Set your own goals, and work smart. If you do a good job, and do it with a great attitude, you will be rewarded. And while you wait, you'll be a lot happier than someone who is crippled with envy.

4. Envy Can Lead to Substance Abuse

Sadly, some people deal with the horrible feelings of envy and jealousy by hitting the bottle, or taking other drugs. I've seen it. No doubt you have, too. After a day of feeling like nothing is going their way, the envious person will come home and pour a double scotch. Drinking doesn't clarify the situation, or open anyone up to a self-realization. Instead, it can actually compound those feelings, which in turn can only be dealt with by using more and more.

Some people eat to deal with these feelings. Others will find themselves smoking like a chimney, or shopping daily to bring about small, but fleeting, moments of joy. However, the envy never goes away. It may be temporarily dulled, but it comes back with a vengeance. And before you know it, friends and family are gone, there's no income, and the debt has piled up.

5. Envy Makes You Doubt Yourself

"Why don't I have that car? Why aren't I living in a bigger house? Why can't I be in the kind of shape they're in?" When you find yourself living with envy on a daily basis, it can begin to erode your self worth, and make you doubt everything you're doing. Your decisions are now questionable, and you can't trust your own judgment. Now, you don't know how to make the right moves at work. You aren't sure how to negotiate. You stop yourself from making bold choices, because you are unsure of the choices you have made up to this point. After all, if you had made great decisions, you'd have that car, that house, and that amazing figure, right?

Well, of course not.

Every situation is different. Some people were born with advantages that others will never have. Some people get lucky. Some people are in the right place at the right time. That does not mean the decisions you made were all wrong. Self-doubt is just as destructive as envy. Sure, it's fine to think things through, but don't give in to that negativity.

6. Envy Brings Less Into Your Life

The laws of attraction say that when we think positive, positive things will happen. When we think of success, we attract success. When we think of wealth, we get wealth. Of course, it doesn't happen overnight, but that attitude buried in our subconscious attracts like for like. Similarly, negative emotions like envy send out signals to the world that you don't have what you want, you will never get what he or she has, and life is unfair. And guess what: The subconscious attracts that.

By constantly envying what others have, and thinking we don't have enough, we will have less. It sounds like junk science, but many psychologists and doctors swear by the power of positive thinking, and conversely, deride negative thinking. It's like Henry Ford said, "Whether you think you can, or you think you can't, you're right."

Has envy harmed your finances? How?

This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

6 Ways Sloth Is Keeping You Poor

Max Wong — Wed, 23 Dec 2015 12:00:03 +0000

Sloth — probably the weirdest of the seven deadly sins. How did it make it onto a short list alongside wrath and greed? What's so bad about being a master in relaxation?

English speakers tend to translate sloth as laziness, but sloth is kind of the super group of bad behaviors, encompassing not just laziness, but also apathy, dejection, and indifference. And, although Western Culture tends to reference sloth within the context of Catholicism's seven deadly sins, most cultures and religious traditions around the world think that sloth is really, really bad because it impoverishes people in so many ways. Here's how this sin is keeping you poor. (See also: 25 Healthy Recipes for Lazy People)

1. It Destroys Professional Relationships

The main reason why sloth is globally loathed is that it often involves the exploitation of others. The slothful will turn in the bare minimum required at any job, forcing coworkers to pick up the slack. This willingness to squander other people's time, always results in hard feelings. No one likes to feel used. So if your professional growth is stunted by a sloth-like reputation, you can kiss any future raises goodbye.

2. It Degrades Potential

Work is worship. The journey is the destination. The reason why these maxims exist is because it is the hard process of many activities that results in enlightenment, not the end goal. For example, while regular yoga practice can result in a firmer butt, yoga was designed as a preparation for meditation.

The demon of sloth is Belphegor. One of the seven princes of Hell, Belphegor tempts humans to the dark side by offering them time-saving gadgets. What a master of seduction, am I right? Because who doesn't want to find an invention that replaces real work? Alas, innovation and great achievement rarely come from taking the easy route.

By yielding to sloth, a person is giving up personal and professional growth in exchange for mediocrity. And nobody becomes successful or wealthy by settling for mediocrity.

3. It Makes Work/Life Balance Impossible

Sloth sounds like the most un-American of vices. Say what you will about us, but we're nothing if not industrious. However, we all have that friend who constantly complains about his job. He could quit or switch to a less stressful gig, but his pride gets in the way. He humble-brags about never taking a vacation, and then calls into the office while on holiday, under the assumption that the world will fall apart without him. Sloths will often spend a lot of time just spinning their wheels, rather than creating anything of lasting value.

4. It Erodes Common Sense

I hate camping. Inevitably, I get stuck sharing a tent with the person who wakes up in the middle of the night and needs to pee. But, instead of putting on her shoes and going outside where she might have to be cold for a few minutes, she instead stays inside the tent and keeps me awake by tossing and turning for hours in discomfort. While common sense would dictate that a few moments of cold would be worth several hours of sleep, Belphegor is the devil that you know. And sloth is ultimately about pain avoidance, to the dumbest degree.

On a more serious note, the inability to make tough, but necessary decisions can do serious damage to a person's future, when the devil that you know is a terrible job.

5. It Puts Pleasure Out of Reach

Dante describes sloth as a slow love that cannot uplift. Cloistered monks nicknamed sloth the "Noonday Devil." The Latin translation for sloth comes closer to the word acedia, which Thomas Aquinas described as "the sorrow of the world." Acedia is that low-grade feeling of ennui, that sense that life is just passing by. Sloth makes it hard to think big or dream of a better life. Which will make it impossible to chase those dreams and achieve personal and professional success.

6. It Harms Your Health

As it turns out, a sorrow for the world can also damage a person's physical and mental health. That "Meh" feeling is actually low-grade anxiety, which can raise levels of cortisol, the body's stress hormone. Elevated cortisol levels are not only associated with mood disorders and depression, but also put people at a greater risk for heart disease and diabetes. And nothing destroys your finances like rapidly accumulating medical bills.

Are you stuck in sloth-mode? Share in the comments section!

This article is from Max Wong of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Why Scientists Say You Should Be Committing the 7 Deadly Sins

Carrie Kirby — Thu, 16 Apr 2015 13:00:10 +0000

Sinning ain't what it used to be. Past societies considered many things to be sinful that we would let slide or even celebrate today. And if one were to take every line in the Bible as law, you would never get a tattoo, gossip, or wear a goatee.

But could the big baddies — the Seven Deadly Sins — ever be considered good for you? Turns out in one way or another, science supports some version of all of them.

1. Pride

Pride's developed a bad rep in years past, but nowadays we're always being told we should have pride in ourselves, our school team, and even our ethnicity. So which is it?

Apparently both, according to laboratory research by psychologists Jessica Tracy and Richard Robins, who isolated two distinct forms of price: hubris (bad) and "authentic pride" (good). People who exhibit authentic pride value hard work and tend to be engaged with life. And did you know that Mark Zuckerberg started Facebook to boost his pride?

2. Greed

"Greed is healthy," alpha trader (and later convicted felon and Gordon Gekko inspiration) Ivan Boesky famously told UC Berkeley grads. But is it really?

Greed is an easy sin to condemn, in part because it's so easy to hate people who have taken more than their share. Look up Forbes' list of billionaires and ask yourself how fond you feel of each of those individuals. Any of the super rich who are well liked probably get their following from donating large portions of their wealth — an apparent lack of greed.

But let's be honest: We're biologically programmed to go out and get what we need. "Greed is what gets you and me out of our beds and off to work. It's what keeps us out of debt and saving for our retirement," certified financial planner Neal Frankle wrote.

Greed is almost always good for the individual that feels it, but it could be bad for the individual's society, writes Washington State University communications professor Richard F. Taflinger. But laws that constrain individual greed too much could also be harmful, because people whose greed isn't rewarded can lose the will to work. Look at all the failed communes out there.

"Unrestrained greed is detrimental to society; unrestrained disapproval of greed is detrimental to society. People attempt to find a balance between biological imperative and social necessity," Taflinger writes.

3. Envy

Marcia Reynolds, Psy.D. and author of Wander Woman: How High-Achieving Women Find Contentment and Direction, counsels that we can harness feelings of envy or jealousy to push us forward in our careers.

"Envy can open up doors you never saw or were afraid to walk through before. Jealousy can lead you to treasure things and people you might have taken for granted," Reynolds writes in Psychology Today.

For instance, if you find yourself feeling envious of a colleague who won an award for something you also do, ask yourself what you can learn from your colleague's success? What is she doing that you're not?

4. Wrath

Carnegie Mellon psychologist Jennifer Lerner studied anger by forcing test subjects to count backwards by sevens on camera, and making them start over every time they goofed. People who exhibited fear showed higher biological signs of stress than people who showed anger. And as any woman who has given birth probably knows, another sign of wrath, letting loose a few expletives, is clinically proven to relieve pain.

So shout, shout, get it all out. It's healthy!

5. Lust

You might have already heard that sex is good for you when you're in a committed relationship; it's aerobic, reduces stress, and so forth. But that's boring old "in a relationship" sex. What about lusty sex? As in, outside a relationship sex?

Turns out that how hooking up affects people's wellbeing depends on their motivation for hooking up. According to New York University and Cornell researchers, undergrads who "slept around" actually felt better after sex — as long as they were hooking up for positive reasons like the fun of it. If they were engaging in revenge sex or had been pressured into the act, the emotional consequences were negative.

6. Gluttony

In the history of mankind, stuffing as much as we could down our gullets was surely the way to go.

"Binging was probably useful in our evolutionary past, when food was scarce and our ancestors needed to eat as much as possible after they came across a berry patch or brought down a fresh kill on the hunt," writes Karen Schrock Simring in "Accidental Gluttons" for Scientific American.

But now that an era of plenty has exposed residents of the world's wealthy nations to the dangers of obesity and diabetes? We can only say that scientists would advise you to be a glutton for the right foods. If you're going to indulge, at least indulge in some nutrients you might otherwise be lacking.

7. Sloth

Do coworkers give you the evil eye because you take a break for a personal phone call, or a nap on the lobby couch mid-afternoon? You might need to find a lower-profile place to nap, but don't stop taking breaks.

A study from the journal Cognition showed that taking even the briefest of breaks can improve your performance on tasks, meaning that when you look like you're slacking, you're probably gearing up to outperform your nose-to-the-grindstone co-workers.

The benefits of naps are well documented. The National Sleep Foundation acknowledges that nappers may be burdened with the stigma of being lazy or having low standards, but asserts that if we get past that, many of us — especially shift workers and long-distance drivers — can really benefit from a 10-minute nap now and then.

Do you regularly run afoul of these sins? For good or ill?

This article is from Carrie Kirby of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: