Photo by Alan Cleaver ©

By Trent Hamm

One of the first big financial lessons I’ve learned is that you can’t trust your own sense of how good your financial shape is. Almost always, if you’re reflecting on your financial state without evidence, you think that you’re in better financial shape than you really are.

There are a lot of reasons for this. Optimism. A need to justify whatever spending move we’re about to make. A need to feel good about our current situation.

I find that the same thing occurs with every significant metric in your life.

People might recognize that they’re overweight, but they often don’t realize how overweight they are.

People might recognize that they’re out of shape, but they often don’t realize how out of shape... More...