Unlocking the Financial and Emotional Power of Acknowledging Mistakes

By Jeffrey Meenes, CFP® (Published Date May 15, 2024)

Financial philosopher Dick Wagner once said, "Everybody's weird about money." It's a sentiment that resonates deeply with many of us. From extreme frugality to excessive spending and unwillingness to discuss finances to late-night anxieties, our relationship with money is often a tangled web of emotions.

Beneath these peculiar money behaviors lies a complex mix of emotional shame, hurt, sadness, and fear. Paradoxically, embracing and understanding this complexity is the key to financial liberation. Rather than rigidly adhering to entrenched beliefs, true financial freedom begins with the liberating act of admitting, "The facts suggest I may be wrong."

It's natural to defend our financial decisions and cling to our beliefs, even in the face of contradictory evidence. Yet, acknowledging the possibility of being mistaken can bring clarity and awareness to our financial behaviors. It opens the door to exploring and evolving our beliefs.

Admitting a financial mistake may feel like a weakness, driven by difficult emotions such as shame and fear of judgment. However, beneath these feelings lies an opportunity for growth. By embracing vulnerability over defensiveness, we can free ourselves from confirmation bias and embrace the power of being wrong about money.

Ironically, admitting mistakes tends to build trust and respect. By showing openness, honesty, and a willingness to learn, we connect with others on a deeper level. Admitting that we were wrong—or even that we might be wrong—is not a sign of failure but a declaration of strength.

Acknowledging our financial mistakes allows us to learn from them and move forward with greater confidence and well-being. It is a healing process that enables us to cultivate compassion and understanding for ourselves as we navigate our financial journey. In embracing the power of vulnerability, we pave the way for true financial liberation and emotional growth.