These are some of the warning signs of financial perfectionism. It’s a hard thing to pinpoint.
Financial perfectionism often inhibits people from taking the actions and risks that would lead them to financial success more efficiently.Simon Letch
To begin with,perfectionism is poorly understood. Casually,we tend to use the term to describe someone who is overly concerned with details or being organised.
However,perfectionism goes a lot further than a preference for tidiness. According to theAmerican Psychological Association,perfectionism is:“The tendency to demand of others or of oneself an extremely high or even flawless level of performance,in excess of what is required by the situation.”
The reason we often miss the signs of perfectionism is that it can often produce great results. From the outside it can look like competence,high standards,ambition,and high-quality work.
What’s not to love? In fact,in many areas,a level of perfectionism is often encouraged. This is particularly apparent in personal finance.
Popular financial tips will have you tracking every purchase down to the last cent,forever. Make sure you’re always hunting for the cheapest petrol and groceries. Don’t forget to return that $35 shirt before the return period expires. Switch savings accounts every few months to chase higher interest rates.
The line between ‘responsibility’ and ‘perfection’ is blurred. And it often does more harm than good. Here’s what financial perfectionism often results in:
No one has their finances perfectly optimised … Perfection is an illusion. It doesn’t exist. What does exist is progress.
Financial perfectionism often inhibits people from taking the actions and risks that would lead them to financial success more efficiently.If financial perfectionism is something you struggle with,here are some things that might help:
It’s hard to fathom that mistakes might be necessary on the financial journey because we often perceive financially successful people as somewhat “perfect”.
A woman has written into Talking Honey's relationship series asking for advice on how to manage money in a relationship.
We assume they must “have it all together”. They must be free of mistakes. In reality,it is often their willingness to fail and make mistakes that leads to faster learning and growth.
No one has their finances perfectly optimised and mistake-free,without a single cent out of order. Perfection is an illusion. It doesn’t exist. What does exist is progress.
So instead of aiming for perfection,focus on moving in the right direction,however imperfectly.
Paridhi Jain is the founder of,which helps adults learn to manage,save and invest their money through financial education courses and classes.
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