How you treat money, how you spend, how you save (or don’t), why you buy, how you treat what you buy…it’s all in your head, Mujeres. Suze Orman said it best, 80% of how you deal with money has nothing to do with what you do so much as it has to do with what you think. Don’t believe me? Try these comments out for size:
- I’ve worked really hard this week, I deserve this _______.
- If I only made more money, I would start saving.
- I’ll just put this on my credit card and I’ll pay it off a bit at a time.
- Sure, I’d like to apply for the store credit card! I’ll save so much money with the coupons!
- When my tax refund comes in, I’ll pay off ______.
- You only live once, and you can’t take it with you!
- I’m married, and I don’t really understand finances…he’s got it under control.
We all have a little voice inside our head that guides us through our decision making. We get so used to hearing that voice, letting it guide us, that we start to believe that the voice, no matter how destructive or misleading, is our truth. That little voice is the same little voice that convinces us that we can’t reach our other goals…a healthier lifestyle, more fulfilling relationships, professional success…it tells us we’re not good enough, we can do no better, this is as good as it gets. Sometimes this voice is a voice of our past, like a family member, perhaps a parent or a grandparent, an aunt or uncle.
Whatever the voice, you have the power to change it. You have the power to change the VOICE. You have the power to change the MESSAGE.
Common Money Myths
1. “I can’t afford to save money.”
You can’t afford to NOT save money. Sometimes saving money means making some really tough choices, but consider the consequences of not being prepared for an emergency? If you are already on a thin budget, you’re not saving, and an emergency arises, you will find yourself at the mercy of predatory lenders. Predatory lenders include payday loans, title loans, cash advances, and pawn stores. Some of these loans slap you with interest rates of over 200% APR and rope you into an endless cycle of borrowing. If you feel as if you can’t afford to save money make sure you’ve left no leaf and no rock unturned. That might mean roommates, moving home with la familia, or taking on an extra job or two.
2. “If I had more money, I could solve my money problems.”
The truth? If you had more money you’d more than likely be in exactly the same spot you are now, just with bigger piles of debt. A spender doesn’t become a saver just because they have more money…they become spenders with more money to spend. Mo’ money, mo’ problems wasn’t just a throwaway phrase, it is pure unadulterated truth. Your goal is to learn how to make the most of the money you have right now. I guarantee you that, if you learn how to manage what you have now, it will open you up to monetary gains in the future. And you can take that to the bank!
3. “I’m just not good with money.”
This is both a lie and an excuse you tell yourself. You choose to not be good with your money because you can hide behind the idea that money management is a skill that you’re incapable of learning. The scarier part? You’re allowing yourself to play the victim and get away with it! Money management isn’t this genetic skill you either have or you don’t. It’s a decision to take charge of your money rather than letting your money take charge of you. So, what’s it going to be?