FFR 291 – The Biggest Financial Mistakes Men Make

This week, it’s a “TWO-FER.” Well, actually, it’s an insight to the hard work Susan puts into her AskSusan financial advice column in City Lifestyle Magazine each month. If you’re in the Lake Minnetonka, Edina or Minneapolis Lakes neighborhoods you likely subscribe to this high-quality magazine already and you recognized it right away.

Now, down about 1/2 way in the column is a QR code that, when using your smartphone and camera, it takes you to the follow-up video that accompanies the article and gets into much more detail than a 1/3 page column can handle. This week, Susan details some of the financial mistakes men make (in general) and how to recognize and fix them.

So if you’re a man…(or a woman who knows and cares about a man) you should watch this video. And if you want to compare this video to the one from last month about “Common Financial Mistakes Women Make” there’s a link at the end of this video and on our website. Be sure to subscribe to our YouTube channel and mailing list if you’d like to be informed on our weekly financial videos or monthly columns. We are all about keeping our clients and friends financially educated and savvy.

Have a great weekend. See you soon.

Financial Flash #291 – AskSusan: What are the biggest financial mistakes men make? And how to avoid them.

Welcome to this month’s Ask Susan question.  I was recently asked about the Financial Mistakes Many Men Make — And How to Avoid Them

The reality is a lot of men make decent money… and can still end up financially stressed.

Not because they’re lazy.

Not because they’re unintelligent.

But because they fall into a few financial traps that can quietly erode the ability to build wealth over time.

And before we start — women can absolutely make similar mistakes too.

This isn’t about saying men are “bad” with money.

But there are certain patterns that I have observed some men tend to fall into more often because of things like status pressure, ego, competition, risk-taking, and the expectation to provide for others.

And if you don’t recognize and learn to manage these patterns early, I can be costly to you.

Let’s start with the pressure to provide.

One thing people don’t talk about enough is the psychological pressure many men feel around money.

A lot of men grow up believing:

– your value is tied to what you provide

– you’re supposed to handle problems alone

– people depend on you financially

– and failure is not an option

Sometimes that pressure is self-imposed.

Sometimes it comes from relationships, family, or society.

But either way, it can create unhealthy financial behavior.

Men start believing they have to:

– look successful

– earn more constantly

– never struggle publicly

– and solve every financial problem alone

And that pressure can push people into bad decisions:

– overspending

– overworking

– hiding debt

– taking reckless investment risks

– or pretending everything is okay financially when it isn’t

Many men don’t just want financial success — they feel responsible for carrying everyone around them.

Another trap I have observed with younger men is trying to buy a lifestyle too early. If you live the  lifestyle your income will eventually support it.

But upgrading your lifestyle too fast can actually back fire and leave you behind where you may never be able to catch up.

Some of these traps can include

A new truck or car.

Luxury apartment.

Expensive watch.

Designer clothes.

High-end electronics.

And suddenly, every paycheck is already spent before it arrives.

A lot of people confuse income with wealth.

But those are not the same thing.

You can make six figures and still be financially trapped if all your money goes toward payments.

And for many men, status spending often shows up through in stuff that you buy:

– vehicles

– tech

– watches

– hobbies

– or trying to “look successful”

Meanwhile, the people quietly building wealth are usually investing consistently instead of spending it on stuff.

Shift your spending away from  buying symbols of wealth instead of build actual wealth by investing in savings.

Vehicles deserve their own category because this one destroys so many budgets.

A $900 auto payment. With high interest rates.

$300 insurance.

Gas. Maintenance. Tires.

Now you’re spending over a thousand dollars a month just to drive.

And people justify it emotionally:

“I deserve it.”

“I work hard.”

“It motivates me.”

But financially, that money could have been building long-term wealth instead of rapidly depreciating.

A vehicle should support your life — not dominate your finances.

Another observation that I have made is confusing investing with gambling.

A lot of people do this, but men can tend to be overconfident and overestimate their investing abilities and then they take unnecessary risks and thinking they are investing for example;

– meme stocks

– options trading

– crypto hype

– day trading

– sports betting

– putting a majority of their money in one stock

And convince themselves they’re “investing.”

But real investing can seem boring instead. Being disciplined to invest regularly in a diversified manner over time is what builds wealth for most people.

The problem is, social media can make risky behavior look intelligent and exciting.

But most people chasing fast money are probably really chasing dopamine.

And eventually, the market humbles them.

Another issue is pride.

Alot of men would rather pretend they understand money than admit they don’t.

So they never learn:

– investing basics and good habits

– taxes

– insurance

– debt management

– retirement planning

– or how compound interest actually works

And unfortunately, financial ignorance becomes expensive.

Some people spend years trying to “look smart” instead of becoming financially educated.

Meanwhile, the financially successful people usually ask questions constantly.

They learn.

They adapt.

They seek advice and recognize that sometimes engaging a professional is one of the smartest decisions you can make.

Because confidence and competence are not the same thing.

Some people confuse looking successful than becoming financially secure.

 

Another problem is putting starting a savings plan. A lot of men assume they’ll start investing seriously later.

When they make more money.

When life slows down.

When they “figure things out.”

But time matters more than most people realize.

Compound interest rewards consistency and time.

The earlier you start, the less money you actually need to contribute over your lifetime.

Waiting 10 or 15 years can cost hundreds of thousands of dollars later.

And unfortunately, many people don’t realize this until they’re already behind.

The biggest investing advantage isn’t brilliance or luckily finding that winner — it’s time.

Having an emergency fund is critical to building wealth over time

A surprising number of people have almost no emergency savings.

It only takes

One job loss.

One medical issue.

One major repair.

And suddenly you’re drowning in debt.

Alot of men mistake income for security.

But income can disappear quickly.

Cash reserves buy you something incredibly valuable:

Time.

Time to think clearly.

Time to recover.

Time to avoid panic decisions.

 

Every adult should have emergency savings because financial emergencies are guaranteed eventually.

The timing just isn’t.

 

The last topic I want to address is tying self-worth to income.

This might be the most important point in the entire video.

A lot of men tie their identity directly to their financial success.

So when money goes badly, it doesn’t just feel like:

“I’m struggling financially.”

It feels like:

“I failed.”

And that mindset can become dangerous.

Because then people:

– hide stress

– isolate themselves

– overwork

– burn out

– take reckless risks

– or refuse to ask for help

Being financially responsible is admirable.

But tying your entire self-worth to money is incredibly unhealthy.

Real financial strength is:

– discipline

– emotional control

– planning

– communication

– patience

– and sustainability

Not silent suffering.

True success can be measured in many ways beyond money.

At the end of the day, most financial problems are not caused by lack of intelligence.

They’re caused by:

– ego

– comparison

– impatience

– emotional spending

– and short-term thinking

And these patterns affect both men and women.

But many men are raised to believe they must always appear strong, successful, and financially in control — even when they’re struggling.

And that pressure alone can create terrible financial decisions.

The people who build real wealth usually aren’t the loudest people in the room.

They’re the most disciplined.

They think long term.

They live below their means.

They invest consistently.

And they understand that financial success is a marathon — not a performance.

Because real wealth isn’t about looking rich.

It’s about freedom.

Thank you for joining me in the in this months Ask Susan question. Tune in to us in July when we will be exploring another captive question.

 

Disclaimer:
Stiles Financial Services is an SEC registered investment adviser based in Minnesota. Information presented is for educational purposes only and does not constitute an offer or solicitation to buy or sell any securities or investment strategies. Investments involve risk and are not guaranteed. Past performance is not indicative of future results.