Faster than a speeding bullet … more powerful than a locomotive … able to leap tall buildings in a single bound. Comic-lovers everywhere can recite Superman’s amazing powers. But the Man of Steel did have one thing that could sap his strength and leave him defenseless: kryptonite.
No matter how financially savvy (and super) we each may be, I think we’ve all got some kind of weakness that leaves us open to making unfortunate money mistakes. Let’s call it financial kryptonite. Financial kryptonite is an opportunity to use money that weakens one’s financial will power. Being aware of its effect on us can help us make more informed decisions and hold one another accountable. So how can you identify, and even guard against, your financial kryptonite?
Find It: Think about those moments when you spent, save, gave, or acquired money with no thought about the impact on the rest of your financial life. It might be an impulse move, or an opportunity that seemed too good to pass up. Do you see any patterns? What were the short- or long-term effects? Again, not all of these things are bad but when they go unnoticed they can slowly drain our financial life.
Face It: It’s important to keep in mind that while the kryptonite itself isn’t bad — and can even be good in moderation — it can have a negative impact on your financial life when it propels your naturally good money moves to extreme levels. Here are some examples by money personality:
Saver: A saver’s motivation is to add more security to their future, so an emergency fund or retirement savings account can be their kryptonite. Because it’s impossible to prepare for all eventualities, they keep saving and saving without knowing when to stop.
Spender: Because a spender’s motivation is to enjoy life to the fullest, their kryptonite is often related to their favorite hobby. For someone who loves to shop for clothes, it might be a sale by their favorite brand; for someone who loves to travel, it might be heading off on a trip without setting some spending limits.
Acquirer: Since an acquirer’s motivation is to bring more money in so they always have more than enough, their kryptonite might be earning opportunities. The impulse is to take on as many extra hours or jobs as possible without considering the time it might take or how it might impact other areas of their life.
Giver: Because there are always more worthy causes out there than resources to go around, givers (like me) might lose track of their own financial goals, especially when presented with a story that tugs at the heart. I’ve often realized that while my initial impulse was to help and support my underlying impulse was a need to fix a situation or save someone. I have to remember that my resources can only go so far.
Foolproof It: It is unlikely the kryptonite’s power will vanish completely, but these three steps can help keep it in check:
Get Clear on Your Goals: If you haven’t already, take the time to outline your financial goals and the things that matter most to you. Then, create a reminder to keep you focused on them. I’m a word person, so this year I chose the word “vision.” My husband and I know exactly what we want our life to look like at the end of this year, and the financial goals that will get us there. Whenever I say that word, I’m able to make a clearer choice. If you’re a visual person, you might choose a picture of some of your goals to put in your wallet or on your fridge. Make sure you not only know your goals but have an easy way to bring them to mind.
Examine Your Motivation: Often we have really deep narratives that reinforce our kryptonite. I know I’ve gotten myself in trouble when I move from “I can help” to “I can make it all better.” Similarly, someone who is focused on saving up for emergencies might notice when their mind moves from “I want to make sure we have a strong financial foundation” to “I want to financially protect my family from every possible catastrophe.” Sometimes it's tough to see these motivations on our own. This is a great thing to talk about with a partner, friend, or therapist.
Ask for Help: One of the biggest things that has helped me to resist my financial kryptonite is accountability. I know that while giving is my strength, it can also be my greatest downfall. When a friend needs help or a new giving opportunity emerges that isn’t in our regular budget, I’ll usually run my plan past my husband first. In the moment, he can see my motivation and our goals much more clearly than I can.