We are all guilty of indulging in the occasional money lie.
Whether you tell yourself that you work hard during the week so you definitely deserve to splurge on the weekend or you dupe yourself into thinking that you’ll start to budget next month, the bottom line is it is common to find comfort in financial lies because they allow you to cloud reality, if only for a little while.
Take a look at the 6 money lies listed below to see if you recognize any of them from your own life.
1. “Money is Evil”
This may have its root in some religious philosophy. The message is that money should not be the center of your life and if this was the entire idea it would be completely acceptable, but money is sometimes tainted as evil and given a bad image overall.
The fact is that money in and of itself is neither good nor bad, it is how you use it and what you do to get it that turns it into a contentious issue. Money is simply a part of life and learning to manage it better can only improve your standard of living so there is no need to be afraid of making money or no reason to feel guilty for wanting to make more money.
2. “I Don’t Make Enough Money to Save”
This is a popular excuse for not saving. Not making enough money to put some aside might sound like a plausible reason for not starting to save, but in fact everyone can afford to save something, or at least to take steps to make saving a short term goal. There is no need to make more money to save.
While that may be one way to look at things, you can also find ways to spend less and this often works much better because you can make more money and then spend it just as easily if you have not addressed the expenditure side of the equation.
3. “Money is Made to Spend… You Can’t Take it With You When You Die!”
This is a defeatist attitude and if you decide to adopt the mantra that “you can’t take it with you when you die” then you are essentially drawing the line around your priorities. There is nothing ultimately wrong about enjoying life or living in the moment, but it is always smart to have a plan in the event that something goes wrong.
4. “Shopping Sales is Saving Money”
If you make yourself feel better about spending money you should not have touched because you took advantage of a sale you are certainly not alone. You know deep down inside though that spending money could never equate to saving it, even if you got a steal of a deal in the process.
5. “I Have Lots of Time to Plan for Retirement”
Time goes by so quickly that even if you are just out of university and in your first job it is not too early to start planning for retirement. The earlier you start the less you have to put aside because the longer you have for your money to grow.
The easiest way to save for retirement is to have your company do a direct deposit into the plan of your choice so you never have the chance to miss a payment.
6. “My Investments are Safe Because I Have a Financial Advisor”
This kind of naiveté can be extremely expensive. In a perfect world, your financial advisor would be looking out for your best interest, but there are a number of unscrupulous agents and advisors in the industry who place your funds simply to maximize their commission or because it is easiest for them.
The advisor might also try to act in your best interest and fail because of a lack of understanding of your goals. Either way, it pays to have an understanding of where your money is kept and what you can expect from your investment portfolio.
If any of these money lies are familiar to you it is time to change your perspective and remember that it is always better to tell the truth.