Needless to say, your psychology about money greatly impacts your financial success. Finance experts emphasize the importance of having the right financial mindset to manage your spending and be able to pay off debt, set a substantial emergency fund, or saving for retirement.
Here are five of the most common beliefs about money that are keeping some people poor:
1. I am Not Good In Handling My Money
When it comes to money, you are who you think you are. The thinking of not being good in handling your finances just puts you in a graver situation. Such mindset hinders a person into pursuing further education and learning to better manage his or her financial life. So, instead of saying “I am not good in handling money”, say “I may not have learned to manage money, but I decide to learn about it”.
2. I Don’t Make Enough Money to be Able to Save
This has been the excuse of many people as to why they are not saving money for the future. High prices of rent, food, gas, and other commodities tend to make some people feel that saving money is just for those who received fatter paycheck. But this should not be the case. Saving should be viewed chiefly on the act more than the numbers. Save, as much or as small as you can. With this, you can gain momentum overtime and pave your way towards financial success.
3. Having Credit Card Debt is Normal
Just because everyone does one thing, doesn’t make the act correct. This is especially true in the case of credit card debts. People tend to accept this is a normal part of life just because most people have them. Don’t be deceived by the status quo. You don’t have to live in massive debts to survive.
4. Frugality is Self- Denial
Many view frugality as denying yourself of the convenience and comfort that can be bought by your hard- earned money. However, this don’t have to be true. Healthy frugality is actually being money smart. Check for areas in your life where you can cut your spending so you can have the luxury of affording other things without resorting to debt and jeopardizing your financial success.
5. Money and Love Just Don’t Mix
Some couples avoid the topic on money because they find it unromantic and may only cost rift in the relationship. However keep in mind that many relationships badly end because of financial problems. Take the time to discuss money concerns with your partner before it’s too late.