You read blogs like this to find the best ways to manage your money. Your intentions are terrific, because saving money is something you know you need to do.
But as much as you read about it, you haven’t fully committed to a vision that will make it happen. You’re sabotaging yourself.
Here are seven ways you’re setting yourself up for financial failure:
1. You’re waiting to save money until you make more.
That will never happen. I’m not saying you won’t make more money; I’m saying there will always be more excuses. Start saving now. Even if it feels like you don’t make enough money to save, shift and recalculate and you’ll find places where you can tighten your belt.
2. You forget that every penny adds up.
True, skipping the lattes won’t make you a million, but skipping the lattes + walking where you need to go + making your lunch will help you get your head above water faster, allowing you to focus on true financial success.
3. You’re not satisfied with what you have.
If you’re constantly buying into the latest electronic trend because it’s hot, new, and attention-grabbing, you’ll never save money, much less keep yourself free from a financial gutter. You must love what you have. Be proud of your iPhone 4, and don’t worry about getting the 5C — because really, do you need it? What features justify that expense? None. Be happy with what you have, and you’ll keep more money in your pocket.
4. Your budget makes you cringe.
If you resent being on a budget, you’ll never make it work. Everyone says you need a budget, so you try it. But if it’s restricting, you can’t expect to effectively live by it. Try calling it this instead: a financial plan, or road map. Now your brain considers it more guiding than restricting. Success is sometimes dependent on your language. Find ways to facilitate, rather than impede, your success.
5. You buy without thinking.
That gorgeous new watch at Kohl’s will go beautifully with your new sweater (which you didn’t need to buy), so you get it. It’s perfect! But if you didn’t need the sweater, did you need the watch? Probably not. You don’t feel like cooking, so you head out to eat. Drop $60 on a meal each week, and it adds up. You could have thrown together a simple meal, but no. You deserve to eat out because you worked like a dog all day. What better way to treat yourself than to dig your debt hole even deeper?
6. You don’t plan for emergencies.
You know what bills have to be paid when. You know how much the tax man will demand next April. But, you don’t know what surprises life has for you. So it’s important to plan. If you don’t, emergencies can throw your whole financial future into ruin.
7. You don’t leverage your abilities.
You’re a rockstar at work, and everyone knows it. The boss is always telling you that you’re invaluable, yet you don’t demand a raise or a higher position. If so, you’re throwing money away. And if you’re NOT a rockstar, why aren’t you? Prove your indispensability and command the cash you deserve.
Which one of these do YOU struggle with the most?