Budgeting and managing your money are not fun — IF you’re in the red. And, if you’re like most people, there are 7 common money mindset myths that are keeping you that way.
Change your mind and change your numbers. It sounds simple, but it works.
Money Mindset Myth #1 – A Penny Saved Is A Penny Earned
Not losing that penny by saving it is helpful, but it takes so much more than not giving that penny to the cashier to create meaningful wealth. In addition to saving, you must also multiply those cents you’re saving to truly feel the effects. Even if the adage is accurate, it’s also incomplete, and certainly not something you can base your future fortune around.
Saving pennies is good, but you also need to earn more money.
Money Mindset Myth #2 – I Don’t Need Money Help
Paying for people to coach you in precision pilates is a want, but if you have zero experience straightening your finances, then going it solo will absolutely hinder your growth.
Investing in a money coach will lead you down a safer road lined with superior choices, better decisions, and ultimately, a finish line you’d probably never reach alone.
Invest in a coach and train for financial success.
Money Mindset Myth #3 – Budgeting Saves Me Money
As noble as that might be, it isn’t accurate. Write down everything you earn, subtract everything you spend, and allot a certain amount towards savings. Then you’re golden, right?
No, not really. You can record your pluses and minuses all day, but if you’re not acting on what you write, your budget means nothing.
Carefully plot and plan, then follow through on your budget to see optimum success.
Money Mindset Myth #4 – If I Earn More, I Can Spend More
You worked 60 hours last week. Dog tired, you came home and collapsed into bed. The exhaustion is fine; at least your paycheck will be fat.
When it’s time to reap the rewards, you happily head out, paycheck in hand, to shop.
“Look at all this overtime! I deserve a ‘little’ something for working so hard!”
That’s why you’ll stay right where you are in your finances.
That “little” something extra is called overtime pay, and THAT is your reward. Stick all your “extra” earnings in a special fund or savings account, then leave it there and watch it grow, rather than disappear.
Money Mindset Myth #5 – If I Don’t Risk It, I Can’t Lose It
Playing a smart financial game means taking intelligent risks. You’ll never make a mint if you don’t make smart investments. Fail to take SMART risks with your money, and you’ll keep the blooms from blossoming on the branches of your money tree.
Stock valuations are volatile, but individual investors can still profit on the expansion of the economy by buying into a broadly diversified index fund that tracks the total market — as long as they have a long term vision.
Know a good investment when you see it, and be smart enough to make it.
Money Mindset Myth #6 – I Make Enough
You bring home your check every two weeks. Your house payment is always made on time. And your bills are current. Yet, you have nothing left for savings, and little, if any, for life’s extras. You might make enough, but you’ll never reach financial independence if you can’t get ahead. You don’t want to be 50 without any retirement assets.
Assets determine your worth, and if you want to grow your financial portfolio, you must find a way to start saving and investing.
Money Mindset Myth #7 – My Today Is Taken Care Of
Too many people live in the moment. In today’s economy, it’s difficult to look past now to see the promise of tomorrow. Yet, right now is when it’s essential to plan ahead. What will your reserves be like as you head into retirement? Not putting away what you can now is a near guarantee that you won’t have enough when you need it in the future.
Start saving into a retirement fund today, so that you can start planning for future success.
What money mindsets are holding you back?