The way you think about money reflects whatever you do with it. Some people have a different way of thinking to the point that they lie to themselves with their situation. True enough, the matter of money can be a very touchy subject, but this does not mean you should forget having an objective perspective about it.
It is important to be true to yourself, especially with money matters. This is why you should avoid – and stop – the habit of lying to yourself regarding this concern. Here are a few common “lies” people tell themselves about their finances.
I do not make enough money yet
A lot of people point to their lack or deficit of income as to why they cannot save up yet. This, however, has to be one of the biggest lies you can tell yourself.
Remember that expenses are variable; therefore, you can always adjust accordingly whenever the need arises. We have so-called “necessities” that are actually “luxuries” we can slash from our daily routine.
What is important is that you learn the habit of saving. It does not even matter how much you save when you are starting out, as long as you save something for the future. Once you make saving a habit, the money you saved will save you.
My credit card can save me
A credit card is not free money. While it can certainly help you on some purchases, it can also be quite a pain once you use it without a plan. Remember that this is still debt, and it is not always the best route to take. Sometimes, it is more strategic to apply for a secured homeowner loan instead of charging an entire renovation project to your card.
My finances will straighten out in the future
Money will not move on its own. Think of it like owning a car: it can take you places, but only if you drive it. Without an active outlook on how you manage your money, you can easily relax and do nothing. You have to do something to get somewhere, so be sure to manage your finances – invest in stocks, set up emergency funds, etc. – instead of hoping it would straighten out in the future.
Once you stop believing these lies you tell yourself, you will have a more proactive stance on money and manage it better. Soon enough, you will be on your way to financial freedom.