Problem: Saving to save
Your grandmother wasn’t kidding when she said thrift is a virtue. But some people see saving as an end in itself and the high point in their life seems to be fondling their bank statement. It’s always good to build a nest egg, but remember that money has no value unless you use it wisely. Today’s insight: Money can set you free or enslave you. It all depends on how you handle it.

How to Fix It
Ask yourself a basic question – why are you saving? If you don’t have a clear answer, your otherwise commendable efforts to set money aside may be impoverishing your life. Take the time to peel off a little money to develop your interests.

Problem: Mismatched Styles
Opposites attract when you and your sweetie are making cow eyes at each other, but can create endless strife if one spouse is a saver and the other’s a spender. Squabbles about money will sour pillow talk in a hurry.

How to Fix It
Start by talking things out so each partner understands the other’s attitude about money. When seeking common ground, remember that compromise is the key to success. Without it, one partner will get everything and the other nothing. That means no change – and the problems will fester.

Problem: Procrastination
Mark Twain said it best: “Never put off until tomorrow what you can do the day after tomorrow.” The witty comment can mask real difficulty, especially when dealing with money. Perhaps your parents argued about money and now just thinking about financial matters brings back bad memories. Or maybe it’s simpler that that: You were traumatized by a decimal point in your youth.

How to Fix It
A little bit of organization can save you money. For starters, you can avoid the stupidity tax – late fees on the mortgage, credit card payments and other bills. Unless you can hire a money manager, it’s up to you to get things right. Start with the basics: Do you have a large amount of money sitting in a low-interest savings account? Are you paying the bank for the privilege of having your money? Check your service fees. You work hard for your money and your money should work for you. If you run your personal finances out of a shoe box, you’re almost certainly kicking yourself down the stairs.

Problem: Adolescent budgeting woes
With luck, this applies to your kids, not you. Some teenagers, and more than a few adults, believe their self-worth is defined by brand name products. Many know the price of gizmos and stylish clothes, but don’t know the value of a buck. Parents that don’t know how to handle this simply toss money to their children and allow them to spend wildly.

How to Fix It
Give your child a financial stake in an iPod (AAPL) or the cell phone they can’t live without. Don’t flash a credit card to fulfill every dream. Instead, have your kid work, scrimp and save to buy special things. This teaches discipline, longer-term planning and will foster a sense of independence. It also shows your child that you’re in charge and have mastered this personal finance stuff.

There are many financial websites that offer solid financial advice to individuals, including T. Rowe Price (TROW), JPMorgan Chase (JPM), Wells Fargo (WFC) and Wachovia (WB).
 

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