ETF Trends
ETF Trends

By Michael Kay via

The dictionary defines morbidity as the “relative incidence of disease,” and in the insurance field, it’s associated with the chances of someone becoming disabled.

The idea of financial morbidity is aimed clearly at those who possess an inability to deal with their financial lives to a degree that their long-term financial security is put in jeopardy.

Do some or most of the following behaviors sound familiar? If so, you might be in or near a state of financial morbidity:

  • You have no real idea where your money goes.
  • You choose the default option in your retirement plan because you don’t want to be bothered or have limited understanding.
  • You haven’t reviewed your insurance policies in the last 3 years.
  • You either have no Will/estate documents, or they’re so dated that they might be invalid.
  • You normally pay interest and penalties on your tax returns.
  • Attempting to win the lottery consumes more time and resources than is prudent.
  • You rarely talk about money with your partner.
  • Financial decision-making is stressful and ends in either shutting down or an argument.
  • You do not work with financial advisors (the kind who aren’t selling you a product).

If these behaviors feel too close to home, you are likely suffering from dis-ease in your money life. You are not doomed to live the rest of your life this way, however. You can change the outcomes if you have enough desire and conviction and take real action.

Following are 4 steps to lead you from a life of financial morbidity to one of financial health and vitality:

  1. Ask yourself what the likely outcome will be if nothing changes. In other words, what will happen if you continue to pilot your financial life by accident, default and luck rather than taking the responsibility of control?
    Take the above behavior statements and turn them into questions. For example: “If I continue to have no real idea where my money goes, the likely outcome is ____________.”
    Now complete the other 8 statements by creating the same question.
  2. Imagine a financial future where you feel secure and in control. What does it look like? Are you happy? Strong? Confident?

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