The Costly Consequences of Financial Apathy: A Wake-Up Call

Ruby McKenzie
5 Min Read

When the economy is constantly in flux, it can be hard to be fully present with your personal finances. And when you’re not fully present, financial apathy can worm its way into your life and limit your financial potential.

For the past 15 years or so, you’ve weathered one economic crisis after another. Today’s runaway inflation and interest rates are the latest challenges you face but are not the last.

With more trouble on the horizon, you are undoubtedly exhausted by the last decade and change — and you wouldn’t be alone. People all around the world are exhausted by their finances.

Overwhelmed, worn out, and demotivated, you may no longer have the mental bandwidth to manage your finances. What you are feeling is financial apathy, and it can have a big impact on your life.

What is Financial Apathy?

Financial apathy is a disinterest in managing your money, marked by a lack of motivation to take care of your finances.

It can present as a low-level burnout that prevents you from looking at the big picture. You may not have the energy to put into planning your long-term future when you’re worried about what the economy has in store.

Apathy can also prevent you from taking an interest in your everyday finances. If you believe nothing you do matters, you probably won’t follow a budget or save money.

The Price of Financial Apathy 

Apathy causes you to take a passive approach to your finances. You’re constantly reacting to expenses and situations rather than proactively preparing for them.

1. Missed Opportunities

A passive approach makes it next to impossible to think of your finances in the long term. You’re so exhausted from managing your household that you don’t have any energy left over to think about your goals.

Long-term goals provide direction for your spending and savings — whether you want to save up a down payment or go on vacation. You need to be engaged to achieve these defined objectives.

2. Inadequate Preparedness

Apathy towards budgeting can result in inadequate savings set aside for emergencies. You’re either too tired or too disinterested to save money, so you won’t have extra cash on hand when your car breaks down or your dog needs vet care.

Most financial advisors recommend you save at least three months of living expenses within this fund. Without this money, you might find it hard to handle the unexpected on your own.

3. Growing Debt

Everyone runs into trouble now and then. That’s why personal loans and lines of credit are readily available online. Many people apply for these financial products in emergencies, on the off chance that their emergency fund falls short of what they need.

The folks at Fora, an online lending platform, join the chorus of lenders that recommend these options as a backup to savings. If approved, you should only use a Fora Credit line of credit to supplement the savings you have set aside.

Unfortunately, financial apathy can cause you to rely on personal loans and lines of credit more often than one-off emergencies. You can accumulate a lot of debt if you use your line of credit to handle every unexpected expense or expected bill.

Tips to Beat Financial Apathy

Check out these tips to snap out of your apathy.

  • Find something that makes you feel good — whether it’s a hobby or purchase — and make it a goal to work towards.
  • Engineer a budget around your top goals.
  • Download apps that help monitor your spending and track investments.
  • Automate bills and savings so you don’t have to work as hard.
  • Consult financial experts for tailored plans and guidance to keep finances on track.

Don’t let financial apathy win. Find out what you can do to care about your money management again.

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