If you're worried about how to pay off your holiday credit card debt, here are the pros and cons of taking out a personal loan. 

If you're feeling a financial hangover after holiday shopping and have considered taking out a personal loan to pay off your credit card debt, you have a decision to make.

When I was young and struggling with a big decision, my mother would suggest I create a list of pros and cons. I'd get a piece of paper, draw a line down the middle, and on one side I'd write the positive things that could happen if I made a particular decision, and on the other I'd write the negative things that could result from that decision.

So, should you take out a loan to pay off holiday debt? Here's our list of pros and cons. Hopefully, it will help you decide.

Pros of taking out a personal loan

1. You may lower your interest rate

One of the main reasons for using a personal loan to consolidate your credit card debt is to access a lower interest rate. Make sure the interest rate on any personal loan you take out will be lower than the one you are paying on your credit card debt. 

2. You can simplify your bill payments

Say you have five different credit cards. Consolidating them through a single loan will streamline the bill payment process and make it less likely that you'll overlook a bill. Lenders also often offer an interest rate discount if you sign up for automatic payments, which is a double win. You'll pay less in interest and never have to worry about forgetting to make a payment.

3. It can improve your credit score

Taking out a personal loan can sometimes improve your credit score. Although you should never take on additional debt solely to improve your score, if it already makes sense to do so, this could be an added bonus.

One of the things credit bureaus look for is a mix of credit. The greater the variety of credit types, the higher your credit score. For example, it is better to be making on-time payments on an auto loan, a credit card, and a personal loan than on three credit cards. Mix of credit accounts for 10% of your FICO® Score. 

4. You may pay off your debt faster

It is possible you'll pay the debt off faster if you reduce your interest rate and don't commit to a lengthy repayment timeline. Make sure you read the loan terms carefully and sign up for an affordable monthly payment that does not increase the overall cost of your loan.

Cons of taking out a personal loan

1. Your interest rate is not guaranteed to be lower

Loan rates fluctuate and lenders have flexibility when it comes to setting those rates. As of today, the interest rates for personal loans range from 5.99% to 35.89%, depending on your credit score and the amount you need to borrow. The gulf between the two rates is massive.

To illustrate the difference, if you took out a $5,000 loan at 5% interest and paid it off in three years, your monthly payment would be $150 and you would pay $395 in interest over the life of the loan.

However, if you borrowed $5,000 at 35% interest, your payments would be $226 for three years, and you would end up paying around $3,142 in interest. 

If the interest rate you're offered on a personal loan is very close to the rate you're paying on credit cards, you may be better off sticking with the cards and paying them off as quickly as possible. 

2. You may be tempted to spend more money

If you borrow enough to pay back your credit card debt, it can be tempting to use the cards again and spend more. You may tell yourself that the pressures of the holidays caused you to rack up that debt, but you need to make a firm commitment not to spend more. If you don't take control of whatever made you depend on credit in the first place, you may find yourself with more credit card debt on top of your personal loan.

3. You increase your debt-to-income ratio

Taking out another type of loan is only beneficial if you keep your debt-to-income ratio (DTI) low. DTI refers to how much you owe in relation to how much you earn. Let's say your gross monthly income is $7,000 and total monthly debt payments amount to $3,500. Your DTI is found by dividing $3,500 by $7,000 to get .5 or 50%. 

The lower your DTI, the better. For example, most mortgage lenders prefer a DTI below 43%, and some want it to be below 36%

4. You may have to pay loan fees

Some personal loan companies charge an origination fee, which is usually a percentage of what you borrow. Origination fees range from 1% to 8% of your loan amount. For example, if you borrow $5,000, you may be charged a fee of $50 to $400. If you are counting on every dollar of that loan to pay off holiday debt, remember to factor in the fee and borrow accordingly. 

There is no doubt that the holidays can be wonderful, but debt is no fun. Weigh the pros and cons as they apply to your situation, do the math, and figure out which option works best for you. In the meantime, while you're paying off 2019 bills, you may want to make a plan to avoid more debt in 2020. 

Part of being a parent is regretting the mistakes. Here are some of the financial mistakes I made with my kids. 

I love being a mom. Even if I lived to be 125, I could still never string together a combination of words that would adequately describe the joy of motherhood.

Speaking of 125 years: That's also about how long it would take to list the idiotic ways I fouled things up as a mother. I may have enjoyed being a mother, but I sure made a ton of mistakes, some of them financial. Here are the money mistakes that strike me as the most egregious:

1. Teaching them that money grows on trees

We never wanted our boys to know that we were struggling to cover our bills, including  newly acquired student loans. This made sense when they were 2 and 4. No little kid should have to deal with their parents’ issues. But as they grew, we should have taught them about money. Even as we madly juggled bills so we could pay our student loans, we made sure they had no idea what was going on. Soccer camp? Sure! Another new pair of ridiculously overpriced tennis shoes? Why not? Dad hasn't purchased a new pair of pants in 10 years, but that's because he doesn't enjoy shopping. 

I set a horrible example by charging anything I could not immediately pay cash for to my credit card, including school clothes, weekend trips, and over-the-top holidays. In an effort to create a world for them that did not actually exist, I mortgaged our future. 

My advice to younger parents is to start young. Don't wait until your kids are about to fly the coop to show them your family budget, discuss the differences between wants and needs, and teach them how to balance their own budget. Teach them about credit cards and how to use them responsibly. Your good example is the best personal finance teacher they could ever have. 

2. Advising my children not to work

My parents didn't want me to have a job when I was a teenager because I "had the rest of my life to work." I insisted on taking a job at Royals Stadium and Arrowhead Stadium because the uniforms were just so darned cute. I adored those jobs. I liked meeting new people, being part of something big and exciting, and receiving a full $14 per game.

When my boys were the same age, I told them that I wanted them to focus on school and their extracurricular activities because "they had the rest of their lives to work." You know how I could have taught them about money? I could have allowed them to earn some of it for themselves. 

If I had it to do over again, I would insist they work -- at least part-time. Working teaches kids what it takes to have money in their pockets, how to deal with different kinds of personalities, and it can also grow their confidence. 

3. Making them believe things will take care of themselves

We always knew that the boys were going to college. They wanted it and we wanted it for them. We had their undergraduate tuition worked out but had no idea how they would pay for graduate school. The hope was that they would get through grad school and land jobs so great that they would never have to worry about the impact of those student loans.

We talked to the kids about everything under the sun, but never once discussed student loans. Most of the mistakes I made as a mother were the result of on-the-job-learning and a naturally goofy personality. But the decision not to discuss finances with them when they were old enough to be in graduate school pricks at my conscience. And while I'm on the topic of really bad decision-making, we also told them that we would only pay for their undergrad if they immediately started a graduate program afterward. I feel guilty every time I think about it. 

We had our big "talk" the year each of them finished grad school. It was very late in the game and made the financial reality of their situation more difficult. Today, my sons are both amazing money managers and wise investors, but the fact that we only taught them what they needed to know in the 11th hour was a lot like teaching a passenger to swim while the Titanic was sinking. We're fortunate that they took the lessons to heart. 

Begin to teach your kids about money when they're young by explaining how much money is in their piggy bank and not allowing them to spend a penny more. Require them to do chores for their allowance, encourage them to take a part-time job when they're old enough, and let them have a peek at your monthly bills so they get an idea of what adulting looks like. Above all, encourage them to ask questions.

Parenting is many things, but above all, it is humbling. We do our best and hope it all works out. The fact that we're supposed to teach them to say no to drugs, about the birds and the bees, and how to be good people is firmly instilled in us. It may be time to add the importance of introducing our kids to how money works. It seems to me that it's the topic they're most likely to call and thank us for covering. 

Finances were a hush-hush subject in our home. These are some of the financial lessons I wish my parents had shared. 

I'm not sure why, but my parents refused to discuss money in front of me while I was growing up. Refused. They would rather sit me down and have "the talk" than divulge anything income-related. In fact, the only time I recall my parents ever whispering was when they were making a financial decision and I was nearby.

Once I began to learn, I figured out that finances incorporate all the major courses we studied in school. The way money works for us is like a sexy version of algebra. The fact that we make emotional financial decisions is pure psychology. And the rise and fall of the stock market tells the story of America, helping us understand how politics, war, innovation, and manpower shape history and build or destroy economies.

Kudos to my folks for teaching me about the birds and the bees in a way that didn't leave me traumatized. I offer them nothing but praise for discussing politics so thoroughly that I was too excited to sleep the night before elections. I will always be grateful to them for illustrating the important stuff, like how to care about other people.

The bone I have to pick with them involves treating finances like a weird old aunt they had hidden away in the attic. I knew she existed but was never privy to the details of her captivity.

In no particular order, here are four things I wish they'd shared with me:

1. Start early

I wish my parents had emphasized the importance of investing early. As in, the moment I was able to scrape together an extra $10. I may have thought of myself as broke as a young adult, but I always had money for a movie or ball game. If I had started 25 years ago and invested a mere $10 a week on the stock market and earned 8% interest, it would be worth almost $40,000 today. And that's if I never increased my weekly contribution.

As a kid, I often accompanied my folks to the bank. I loved the fact that they seemed to know everyone and I was frequently offered candy from one of the many candy bowls scattered around the lobby. Any of those visits would have been a great opportunity for my parents to sit me down with a bank employee and have them walk me through a simplified version of investing -- or even teach me about compound interest. 

2. It's not all or nothing

My father was a Marine and never thought he would live to be an old man. As a result, my parents lived far below their means because he wanted to invest every extra penny and make my mother a wealthy widow. They didn't buy new cars, furniture, or splash out on any of the other niceties of life. After my dad retired from the military and my mother left government work, they stopped traveling to exotic places. 

I learned to associate financial responsibility with a spartan existence. It would have been nice if I had learned that it's OK to do nice things for yourself, even as you invest. As with most things in life, being financially responsible involves balance.

3. Count on yourself

This is a sensitive one, but my father hoped that I would "marry well." I'm not saying that my parents didn't have big hopes for me personally, but I know how relieved my dad was that I married a man with ambition. That way, no matter how much I screwed up, I'd have a strong, capable man to take care of me. 

Parents, I'm here to tell you: That's a terrible message to send to your daughters. You don't even have to say it aloud. You can say other things that convey the same message. Telling your daughter that it's OK to give up a career she loves to follow her significant other across the world because "he earns so much more" is not cool. Advising her to take on the role of supporting player is not smart -- 50% of marriages end in divorce. 

What I wish my parents had said instead was, "Be a good partner, but also look out for your own financial interest. That way, if you ever find yourself alone you won't have to worry about money."

4. Bad stuff will happen

I knew about war and famine and other issues going on in the world. What I was shielded from was a truth closer to home: Bad stuff happens. People lose their jobs, interest rates skyrocket and make it darn near impossible to buy anything, gas prices go through the roof, and the stock market goes through peaks and valleys. Because finances were so hush-hush in our home, I was ill-prepared for pretty much every financial difficulty. 

I'm not saying that they should have scared the everloving wits out of me, but I wish I'd learned earlier on about the value of having an emergency fund saved up in my bank account so that I wasn't so inclined to panic when hard times hit.

Time passes quickly (like, really quickly)

Would I have listened if my parents had told me that I would wake up one day and realize I have more years behind me than in front of me? Would that have changed the way I approached finances? Would I have been a better investor in those early years? Honestly, I'm not sure, but it would have been an interesting conversation to have.

I find it interesting that my husband and I made many of the same financial mistakes with our children that I accuse my parents of making. We never wanted them to know when we were in a financial pinch. I suspect it was because, like my parents, we wanted to protect them from the harsh realities of life. Like them, everything we did, we did out of love.

I was lucky to have parents who put braces on my teeth, made sure I enjoyed a biannual trip to JCPenney for school clothes, and made me feel safe. Aside from the fact that I had to learn about finances the hard way and am not currently sipping an espresso in a piazza in Rome, life didn't turn out so bad.

Do you feel uncomfortable being prompted to tip through a tablet-based payment system? You're not alone.  

If you frequently shop using a debit or credit card, you've probably completed at least some of those purchases on a tablet-based payment system. It looks like a large iPad and is often mounted near a cash register. What's interesting about these payment systems is that merchants have often set them to ask if you would care to tip. Regardless of the service provided -- pouring a cup of coffee, giving a haircut, or selling a new pair of jeans -- you are asked to tip anywhere from 10% to 30% (or more).

Depending on the person behind the counter or handing you the tablet, you may have a set of eyes on you as you decide whether or not tipping feels appropriate in that specific situation. And if so, how much.

Guilt tipping

I recently had a manicure. Nothing fancy. I soaked my fingers in a bowl of soapy water and a tech cut cuticles that were worthy of a mountain woman. Before polish was applied, another employee handed me a tablet for payment. The tips on this tablet were not simply suggested percentage rates, but each of the rates was intended to represent a review of her work. It looked like this:

• 15% -- Service was fine
• 20% -- It was a good experience
• 25% -- I will definitely be back
• 30% -- My tech hit it out of the park
  
  

I forget to mention an important fact. The tech still had a port in her chest from a recent battle with breast cancer. Guess how much I tipped her?

The industry

Tablet-based payment systems are a boon to retailers. They're sold by companies like Square, Revel, and ShopKeep, and designed to allow merchants to include or turn off the tipping prompt.

According to industry leaders, the opportunity to tip via a tablet-based payment system is good for cashless customers because it gives them a way to tip. Fair enough. It also makes the socially sensitive among us feel like jerks for not tipping enough (or even knowing what constitutes enough).

ShopKeep breaks down how many of their customers take advantage of the tip prompt option. According to the cloud-based service providers, 49% of "quick serve" clients like bakeries and cafes have the tip option turned on, and 12% of more traditional retailers. 

Figuring it out

Tipping in the U.S. took root shortly after the Civil War. Americans who had the money to travel noticed Europeans were in the habit of tipping and brought the practice back to America. It served to show their friends that they'd been abroad and were genteel enough to tip like Europeans.

But let's face it, we've all received different memos regarding proper tipping etiquette. Some people leave a tip only for top-notch service, while others are too embarrassed to leave an establishment without emptying their pockets. I've been out with friends who were generous tippers and was once with someone so stingy that I snuck back to the table to increase the minuscule tip she slipped under her plate. 

Given the divergent nature of the advice, it's difficult to know how much to tip. The fact that we haven't mastered the art of basic tipping in more than 150 years begs the question of whether we're ready for this new frontier of tipping in establishments in which we did not expect to be asked.

I'm no Emily Post, but…

I'm no etiquette expert, but I am someone who understands the value of a dollar. As tablet-based tipping becomes more commonplace it will also become more expensive to support. Say you tip $3 three times a week for services that used to be free (like buying a shirt in your favorite boutique or picking up a ready-made arrangement for a friend in a floral shop). That's $9 per week in new tips. Invested in an easy-to-sign-up-for investment account earning 7% interest, that tip money would be worth over $6,500 in 10 years, $19,000 in 20 years, and a whopping $44,500 in 30 years.

Coming up with a plan

Rather than be shocked by the tipping prompt on a tablet-based payment system, I have decided to go in with a plan. If someone had to lean slightly to their left to lift a muffin out of case for me, it is not tip worthy. If an employee provides exceptional service, I want to thank them by tipping. It's that simple.

Guilt is a pretty silly reason to part with our money, particularly when those funds can help us plan for a more secure future. 

Even if you've never budgeted, these apps make it easy. 

This may be the nerdiest of all confessions: I love a good budgeting session. Long before I knew what I was doing with money, there were few things I enjoyed more than sitting down with pen and paper and constructing a personal budget. Having a budget -- whatever budgeting method you choose -- is essential if you want to manage your money and meet your savings goals. 

It was Christmas come early when I realized that there are apps to help with budgeting. I've been doing it the same way for so long I wasn't sure how I would adapt, and yet I was eager to test-drive a few.

Here are three very different budgeting apps that may take some of the sting out of organizing your finances:

Mint

Mint is one of the earliest budgeting apps and has evolved to include just about everything you could possibly want. It comes to us from Intuit, the good folks who brought us TurboTax and Quicken, and so it covers all your financial bases.

While I like the fact that you can connect the app to all your bank accounts, as well as your credit cards and some utility companies, I also understand that some people may be hesitant to do this. I'd recommend at least linking it to the checking account you normally use to pay bills. The process may sound intimidating, but the app walks you through each step and makes it easy.

Creating categories lets you look back at the end of the month and see where the bulk of your money is going. Another neat feature is that you can manually track your spending, so even if you don't connect your accounts, you'll still have a record of what you've paid for. The Mint app allows you to take care of multiple financial chores, including paying your bills. And if you prefer not to pay them through the app, it'll email you a reminder of what's due.

Mint also helps you track your investments, see an updated monthly credit score, and set financial goals. Ultimately, though, what makes Mint famous is its budgeting capability and the fact that you can personalize yours down to the smallest detail.

There is no fee to use the Mint budgeting app. 

Goodbudget

If you're a fan of envelope budgeting, you'll like this app. Goodbudget is a sophisticated way to divvy up your monthly income into different envelopes in order to stay on track. For example, one category (or envelope, if you will) allows you to include all things transportation-related, including the monthly payment on your car and maintenance costs. Another may be for groceries or piano lessons. As the month goes by, you take money out of the corresponding virtual envelope for each expense. You can see when the envelope is getting low, and the goal is to stop taking money out before it's empty. 

There's a free plan, or you can spring for the $6 per month (or $50 per year) "plus" plan.  The free plan allots you a total of 20 budgeting envelopes and allows you to use the program on two devices. With the plus plan, you get an unlimited number of envelopes and can use the program on up to five devices. 

Unlike the other two budgeting apps covered here, Goodbudget does not sync with your bank accounts. You must manually enter each transaction as it occurs or import recent banking activity by uploading MS Money or Quicken files. 

Goodbudget is best for those who are dedicated to adjusting their budgets as they go along, visual learners who like to see where their money is going, and folks who are uncomfortable linking their financial accounts to a budgeting app. 

Albert

One of the strangest apps I came across also stole a little piece of my budget-loving heart. It's called Albert and it's perfect for anyone who swears there is no way they can save money. 

Here's how it works: Like the Mint app, you link your accounts to Albert. Using a proprietary algorithm, Albert pores over your income, spending, and budget. Based on that information, it figures out how much you can safely save each month. The cool part is that Albert automatically transfers that money into Albert Savings, an FDIC-insured savings account. The transfers range from $5 to $30 (depending on your overall financial health) and take place two or three times each week.

Does the idea of Albert making that decision for you make you nervous? That's OK. You can instead opt to tell Albert how much to put in savings each week and withdraw funds anytime without ever having to pay a fee. The basic Albert app is free to use.

If you want to get really fancy, you can add on Albert Genius. Genius members can find answers to questions like, "Which car manufacturer offers the best warranty?" There's no set price per se, but you're asked to pay what you think is fair. The suggested minimum is $4 per month. 

Albert users with a free plan get a bonus of $0.25 for every $100 in their savings account over the course of a year, and those who've signed up for Albert Genius get $1 for every $100 in savings. Bonuses are paid at the beginning of each month and can amount to 1% annually. 

If you're not sure which budget app is right for you, take one -- or all -- of these for a trial run. Be warned, you may have a tough time deciding on just one because they each have something good to offer. 

You may not be able to foot the entire bill for your child to attend college, but you can support them in other meaningful ways. 

If you're a parent, you may find yourself skimming over news regarding the cost of college. After all, who wants to read about something that is likely to make them feel bad? Just 29% of parents plan to pay the full cost of their child's college education, according to a study released by Fidelity.

If you're not in a position to pay in full, give yourself a break. There are plenty of other ways to help your child through college and minimize the amount of student loans they will need.

Pay what you can

Maybe you started a college fund but were never able to contribute as much as you hoped. Perhaps you got a late start or simply hit a financial roadblock and have been unable to save. Decide how much you can afford to contribute and have an honest conversation with your soon-to-be-student regarding what they can expect from you. If you can pay for lab fees and books, that's one less expense they'll need to plan for.

Help them apply for scholarships and grants

You're likely to have a good idea of how much you can contribute a year or two before you child begins college. The good news is that gives you and your child the chance to look for alternative funding sources. Here are some of the places your child should check:

• The U.S. Department of Labor's free scholarship search tool
• The higher education grant agency for your state
• A college financial aid office (preferably, the school your child plans to attend)
• Federal agencies
• Your employer (some offer tuition assistance for employee's kids)
• Ethnicity-based organizations
• Organizations related to your child's field of interest
• Civic groups
  
  

Finally, depending on how proactive they are, the counselor's office at your child's high school may be rich with financial assistance information.  

Help them build a budget

Before they begin college, teach your child how to build a simple budget, including any income they will earn and bills that need paid while they're in school. It will also be a good time to discuss the value of saving the money they earn each summer to put toward the cost of their education The more they contribute, the less they will have to take out in student loans. 

Keep them on your plans

Healthcare costs can wipe out even the best-laid budget, so make sure your child remains on your family healthcare plan. If possible, also keep them on your cell phone and auto insurance plans. Those are three expenses they won't have to worry about as they navigate the deep and muddy financial waters of higher education. 

Offer to let them live at home

No, none of those 1980s movies about college show students still living at home, but the reality is this: During the 2019-20 school year, the average price of room and board is $12,990 at private colleges and $11,510 at public colleges. If your child is willing to attend school close to home, simply staying with you can save them between $46,040 and $51,960 over four years. 

Keep their car running

Unless you're fortunate enough to live in a city with great public transportation, your child is likely to depend on his or her car to get to school (and possibly, a job). You can help by keeping their vehicle up-to-date on maintenance and in good condition. 

A parent's job never ends. One of the most meaningful ways you can contribute to your child's education is to be there as emotional support, to cheer him or her on when things get tough. If your child longs for an education, you're the one who needs to say, "We've got this." 

When it comes to taking out a loan, interest rates and terms make all the difference. Don't be fooled by monthly payments -- what matters is the total cost 

We humans do strange things. We hit the elevator button several times, believing it will speed up the process. We check for bad guys hiding in the closet and behind the shower curtain as soon as we enter a hotel room. And we worry more about our monthly payments than the total amount a loan will cost.

That last one is straight-up silly. Paying more than necessary for a loan is like throwing money into a fire and watching it burn.

The new car

Loan terms matter, no matter what you're shopping for. For purposes of illustration, let's say you're on the hunt for a new car and fall in love with one in a dealer's lot. The salesperson mentions the price and you swallow back your surprise. It's several thousand dollars more than your cool-headed research from home told you it should be. 

The salesperson insists that the number you've run across online is the manufacturer's suggested retail price -- and that demand for this particular model is so high that people are willing to pay much more.

You wisely turn to leave, but the salesperson stops you and asks what your ideal monthly payment would be. You are invited to have a cup of coffee while the salesperson speaks with the finance department. A few minutes later, miracle of miracles, you're informed that the dealership wants your business so much that they're willing to offer you special financing. In fact, they've crunched the numbers and were able to "get close" to your desired monthly payment.

By now, you've imagined driving the car off the lot and are emotionally committed. You don't worry that the annual percentage rate (APR) the dealership offers is 1% higher than you expected. How much damage can 1% do? 

They also tell you that you'll need to stretch the loan out over 72 months in order to keep your payment down. You were hoping for 60 months, but decide you can live with a longer loan. 

You want that car so much that you agree to terms without crunching the numbers and without thinking about how much you will pay in total. 

The difference a percentage point makes

Take a look at these comparisons of different interest rates on a 60-month and 72-month auto loan for a $36,000 car. If you take out an auto loan for 6% over a 60-month period, you'll pay a total of $41,759 -- with $5,759 in interest charges over the course of the loan. 

But if you agree to 7% instead, you'd pay an additional $1,012 in interest. And, if you extend that same loan for an extra year at the higher rate, you might lower your monthly payments, but you'd pay a total of $44,191. That's almost $2,500 more than the total cost of the five-year loan at 6%.

Charts like these might help you walk away from bad deals. Each shows how much more a single percentage point will cost you over the life of a loan. 

60-month loan

Data source: Author calculations.

72-month loan

Data source: Author calculations.

Understand your loan terms

No matter what you're shopping for -- whether it's a home, refrigerator, lawnmower, or new credit card -- interest rates matter. Agreeing to pay a single percentage point more in interest is like allowing the bank to siphon extra money from your account each month. 

One surefire way to avoid bad deals is to always ensure you understand the loan repayment terms and to keep an eye on the total cost rather than the monthly one. Another is to get your credit score so high that lenders compete for your business by offering the lowest possible interest rates. 

People with very poor credit scores may not get approved for loans at all, whereas those with very good or exceptional scores will qualify for better rates from lenders and more credit card perks or rewards.

Boosting your credit can save you money. There are lots of ways to improve your score, but ultimately it comes down to paying your bills on time and minimizing the amount of debt you carry. And whatever your score, don't forget that you always have the power to walk away from a bad deal.

We're all human. We'll continue to self-diagnose based on the latest Google search results. We'll still touch a plate the second a server warns us it's hot. And we'll still make financial mistakes. What makes us smart humans is correcting those mistakes so that next time, we can get it right. 

If you wait for the perfect moment to begin investing, you'll never do it. Today is the best time to begin building wealth. 

If you think you don't have enough money to invest, consider this: Over half the population is finding ways to put some of their cash into the stock market.

As of April 2019, 55% of Americans had money invested in the stock market, according to a recent Gallup poll. Respondents included individual stocks, as well as stocks purchased as part of their retirement accounts and/or mutual funds.

While that's impressive, it's also striking is that 45% of Americans do not own any stock in any form. If you are one of them, it's time to ask yourself why. The chances are it's down to one of these three answers (or a combination thereof):

• I don't know how to invest
• I hate risks
• I don't have enough money

If you're currently unemployed and worried about keeping a roof over your head or food on the table, it's safe to say that now is not the right time to invest. If, however, you have a job and your bills are getting paid, it's time for someone to call malarkey on your excuses for not investing. 

It doesn't have to be complicated. If your employer offers a 401(k) retirement plan, make pre-tax contributions. If they match any portion of your contribution, it's free money. Educate yourself on the stock market and know that you don't need to be a millionaire. You just need a plan.

In short, once you have enough money socked away in your emergency fund -- ideally in a high interest savings account that's easy to access in the short term -- you're ready to invest for the long term. 

Address each excuse

Not to go too far down a psychological rabbit hole, but the idea of investing can bring up a host of scary feelings and being too broke is just one of them.

Afraid you don't know how to invest? 

You're already ahead of the game by reading this article, and there are plenty of books and other resources available if you want to learn more. But the best way to learn is to dive into the investment waters. You can ask questions and look for answers as you go. It's like learning to swim. You just gotta get in the water.

Think you don't have enough money to invest? 

That's likely because you think of investing as something "other people" do, people who make more money than you. That's just wrong. People like you invest their money. You know why? Because historically, stocks invested in the S&P 500 have averaged a return of 10%. Through good economic times and bad, those successful investors let their investments ride and reaped the benefits.

Afraid you'll lose money in the market? 

You will -- sometimes. And sometimes your investments will earn so much they will more than make up for losses. Start with a small amount of money, and keep it simple by looking at index funds or using a robo-advisor. 

It's natural to be worried about investing -- it's new and you don't fully understand the process. But like any fear, you have to face it to overcome it. And let's be honest here; there are few things scarier than getting into retirement with nothing put away for your golden years. Your future self will thank you for taking a risk now. 

Start small to end big

Can you think of ways you might scrape together an extra $10 a week? I don't know about you, but that's less than I pay for Netflix. It's less than a hotspot for my cell phone, less than two adult beverages with friends, and far less than the amount I spend on groceries that go bad and have to be tossed each week (my refrigerator is like death row for Brussel sprouts and kale). Look at your budget, work out where you can shave a few dollars each week, and assign that money to your investments.

Let's say you did decide to invest $10 each week. Although it doesn't sound like much, here's what would happen if you invested it in an IRA (or other investment account) drawing 8% annually:

That $10 a week adds up to $13,000 over the course of 25 years. Assuming you earn at least 8% interest on your investment, that means you could earn an additional $26,263 on that money -- giving you $39,263. 

And it's all due to compound earnings. Compound earnings are a thing of beauty for this reason: You make an investment and it earns money, which is reinvested. As your investments grow, the earnings themselves start to earn more money. Compound interest is the reason banks get rich when we don't pay off our credit cards each month, and it's also the reason regular, everyday people can send their kids to college and retire in comfort. 

Remember though, the stock market goes through peaks and valleys. It's essential to view these investments as long term. That means not panicking when they're down and not cashing out when they're up. And don't invest money that you might need to access in the short term.

Just do it

I'm going to let you in on a little secret: You'll probably never feel like you have enough money to invest. There's always going to be somewhere else to use that money. You'll get a new job and buy a new car. You'll get a raise and send the kids (or dogs) to a better summer camp. If you wait until you feel wealthy, you will never invest.

So stick your toe in the investment water and get ready to swim. Once you realize how much your investments can help you meet your financial goals, you'll wonder why you ever waited.