The 3 Ways to Spot Your Financial Blind Spots

Read Time: 4-minutes

Happy Saturday,

Here is this week’s edition of 6-Point Saturday — financial insights to help you make smarter money decisions.

*Clickable in the online version.

It’s easy to become overconfident after getting information on only part of the “big picture.”

Blind spots, or things we “don’t know we don’t know,” can be one of the most costly issues in personal finance.

And we all have them, even though we usually assume they only affect other people:

But blind spots aren’t only about missing information or strategies. They can also include undervaluing topics you already know.

Money Psychology: You might acknowledge that your money mindset can affect your finances. But you miss how deeply your relationship with money and your money identity shapes every decision. Your beliefs can create invisible ceilings around what feels possible. Or believing you’re ”just not good with money” can become a self-fulfilling prophecy.

Discipline vs. Automation: When your finances aren’t going as well as you would expect, the usual assumption might be that you need more discipline. You might begin to beat yourself up for lacking willpower. The blind spot? Undervaluing automated systems that make discipline feel effortless.

Accountability: Oftentimes, individuals know what they need to do (or could easily research it), but they underestimate how much harder it is to follow through when nobody’s checking in.

So, how do you identify your blind spots before they cost you? Let’s look at what I call “The 3-Lenses Method.”

A few ways to help spot your blind spots are to look at yourself through three different lenses:

Lens 1: The Data Lens (What IS)

This lens is a literal look at your spending & savings habits. Many individuals are shocked to see where their spending actually goes. So, review or track your actual spending for a couple of months, without judgment. Then compare your tracked reality to what you thought you spent on discretionary categories before you started. The gap between perception and reality can be a blind spot.

Lens 2: The Future Lens (What COULD Be)

Engage in what’s called a pre-mortem exercise. Imagine it's December 2026 and you're still struggling with one aspect of your finances (e.g, credit card debt, living paycheck to paycheck, etc.). Write down a few specific habits that probably kept you stuck (e.g., promotional emails driving impulse spending, dreading setting up automatic transfers, etc.). Research by Gary Klein shows this pre-mortem technique identifies 30% more potential problems than traditional planning.

Lens 3: The Peer Lens (What OTHERS SEE)

If you have someone close to you whom you can trust, ask them about your habits: "What's one money pattern you've noticed about me?" Give them permission to be honest. Research by Princeton social psychologist Emily Pronin suggests that we're much better at spotting biases in others than in ourselves.

If multiple lenses point towards the same issue, that’s a strong signal. At the same time, be sure to prioritize by financial impact. Your most expensive blind spot may only appear in one lens.

Your Move: Which of these techniques appeals to you most? Can you take a few moments to take one small step (e.g., scheduling 20-minutes to complete Lens 1, texting your friend about Lens 3, etc.)?

First, credit where it's due. This person has estimated taxes on their radar, which puts them ahead of many people. Estimated taxes are a common financial blind spot.

The problem here? This person made their $19K in gains in Q1 2025. So, they should have been evaluating a potential estimated tax payment by the first quarter deadline on April 15, 2025.

What are estimated taxes exactly? If you have income that doesn't have taxes withheld (investment gains, rental income, freelance work, side businesses), the IRS expects you to pay taxes quarterly, not just at filing time in April. Fortunately, there is a Safe Harbor rule (more on this in Point #4) that can help you avoid penalties.

Otherwise, if you miss those payments, you'll owe penalties and interest, even if you settle up when you file.

The Safe Harbor rule is your “get-out-of-penalties” card for estimated taxes. Here's how it works.

In general, the IRS won't penalize you for underpaying quarterly estimates if you meet one of these two conditions:

Let's apply this to our Reddit friend from Point #3. Say they owed $15,000 in total federal tax for 2024. If they ensure at least $15,000 gets paid to the IRS during 2025 (through withholding + estimated payments), they're covered under Safe Harbor, even if they actually owe $20,000 for 2025.

They'll still owe the $5,000 difference when they file in April 2026, but no penalties or interest.

Which of these quotes resonates most with you?

Reply to let me know! I read every response.

Thanks for reading — I hope you found a helpful idea or two.

I’ll see you next Saturday with more.

Have a great weekend,

Benjamin Daniel, CFP®
Founder, Money Wisdom

P.S. Want to take control of your money, stop stressing about your expenses, & feel confident about your financial future? There are 2 ways I can help you:

Disclaimer:

This material is not investment or tax advice. No responsibility for loss occasioned to any person or corporate body acting or refraining to act as a result of reading this material can be accepted by the publisher.

👉 Is there another topic(s) you would like me to cover? If so, reply to this email & let me know—I read & respond to ALL emails.