FINANCIAL INSANITY: Definition, Symptoms, Cause and Cure

     Insanity is defined as doing the same thing over and over again but expecting different results. Well financial insanity holds the same definition but refers to one's financial life or situation. It can be seen as Making the same bad financial decisions(poor planning, gambling, overspending, etc) over and over again but expecting to be rich or financially free.

       In Nigeria, this mindset or lifestyle of poor financial decisions coupled with unrealistic results is common and most times encouraged. What Does Financial Insanity Look Like? Here are some signs;

 

1. Earning and Spending Without a Plan – No budget, no savings, just vibes.

2. Constantly borrowing to survive without a plan on how you’ll escape the debt cycle.

3. Relying on a sudden breakthrough or miracle without taking any action.

4. Ignoring Investments – Spending everything without growing any assets.

5. Lack of Financial Literacy – Not making efforts to learn about money management.

6. Saying you want to make money but constantly watching lifestyle videos without taking action 

7. Blaming the government, the economy, or bad luck while refusing to take control of your financial future.

8. Spending first and saving whatever is left—when it should be the other way around.

9. Prioritizing luxuries over necessities, then complaining about being broke.

10. Earning more money but increasing expenses instead of building wealth. And the list goes on...

           Curing financial insanity may take months and for some years—why? Because it's a state of mind and it starts with one decision, TAKE ACTION. This is where we see many people give in and give up. To them, it's so much easier to read an article, watch tiktok videos and only dream of a life that is right at their fingertips.  

      Before we go into how to cure this, let's first look at the cause, the root, the Genesis. A disease treated without its cause being removed is just a temporary fix—like pouring water into a leaking bucket. So Why do people overspend, gamble, get deep in debt, don't feel motivated enough to take the first step?... 

These habits majorly stem from deeply rooted psychological and social or cultural factors like; family background or culture, fear of failure, social status & pressure, friend circle & influence, get-rich-quick mindset, cultural & religious beliefs, financial ignorance and educational systems. 

       Now we can see that Financial insanity isn’t just about bad money habits—it’s about the deep-rooted beliefs, fears, and influences that shape how you handle money. Before you can change your financial situation, you must first understand why you are where you are. let's dive a little deeper shall we?

Take a moment to reflect:

When did I start developing these financial habits? Was it from childhood, school, or peer pressure?

Do any of my friends or family have the same habits? If so, am I just following the same cycle?

Is this helping me achieve my goals? Or is it keeping me stuck?

What are my financial goals? Do I even have clear goals, or am I just “hoping” things will get better?

Why haven’t I achieved them? What’s really stopping me? Lack of knowledge, discipline, fear?

Has anyone told me I can’t be rich? And if so, why did I believe them?

Why am I not where I want to be? Is it because of excuses or real obstacles I haven’t tried to overcome?

Why am I not rich? Have I done the right things to build wealth, or am I just wishing for it?

Why do I borrow money or gamble? Is it truly necessary, or have I made it a habit?

Do I have to borrow or gamble, or are there other ways to get money? Have I explored opportunities, or do I just take the easy way out?

Have I actively looked for solutions? Or do I just complain and wait for luck or miracles?

Have I stuck with any of those solutions until I see positive results? Or do I give up too quickly and return to old habits?

Am I truly satisfied or happy in my current state? Or am I faking it to make myself feel better?

        Start by being brutally honest with yourself. Identify the root causes of your financial struggles, challenge the beliefs that hold you back, It’s not about blaming yourself or your past—it’s about taking responsibility for your future. The first step to financial freedom is self-awareness. If you don’t question your financial habits and mindset, you’ll remain stuck. But once you start asking the right questions, you’ll find the right answers—and the power to change your financial future.

Now, ask yourself: Am I ready to break free?

   Was it a bit much to digest all at once? Have questions on this topic? Leave a comment below. We'd love to answer all your questions and if you loved this post, be sure to follow us so you don't miss out on our latest posts.... See you soon 🥰