Sometimes, to rationalise your money habits, you tell yourself certain lies. Since human wants are insatiable, your desires can distract you from the real state of your finances.
This fuels the falsehood that you don’t need to be intentional about your finances. See if any of these money lies resonate, and stop them before they destroy your finances.
Money equals happiness
Telling yourself that your troubles will disappear and you will be happier if you have money in the bank is a big fallacy you need to purge.
This is because dwelling on them can make you emotionally invested and cloud your financial judgement. In turn, you get disappointed if the money never comes or if it does not make you as happy as you expected.
Having money goals is fantastic. But don’t think that it automatically guarantees happiness.
I must have it even if I don’t have the money
Most of the time, to justify laudable spending, you console yourself with it being okay and the phrase ‘You Only Live Once-YOLO’.
These are mechanisms to persuade yourself that buying something you cannot afford is acceptable as you are entitled to it.
It, therefore, eases the pain of expensive spending, particularly on items that aren’t truly necessary or needed.
Self-proclamation: “I have strong financial willpower”
When confronted with the shopaholic syndrome, you delude yourself with self-proclamations such as “I can resist it.”
Whereas you have bought things on the spur of the moment and even things you do not need.
The fact is that when people are anxious, they are more inclined to shop on impulse and spend more money.
Buy now, save later
Many people prioritise spending all their money in the moment, with the promise of saving for the future. This promise is never fulfilled, and if ever, it is the leftover that is saved.
This mindset makes you value spending instead of saving for the future. You need to save for unforeseen situations and towards retirement.
Enough time to plan for the future
Since it seems far away, it’s easy for you to create excuses for not planning or saving for the future.
Once time is gone, you can not regain it. Though it seems far, it is just a flick away.
This money serves as a justification for procrastination. It is used when coping with a bad financial situation.
Good versus bad debt
The money fallacy about debt can be deceiving. The fact remains that every debt you incur has a cost. It’s crucial to know how each affects you now and later.
So, rather than concentrating on whether a debt is good or bad, consider the cost. Also, factor in if it brings you closer to your objective.
Wanting more is bad
This is a money lie that makes you think being poor is good. It stifles your progress and makes it challenging to change your financial habits.
While compulsive covetousness is terrible, wanting more from life is not a negative thing. Accepting not wanting more equals settling for less. You change your mindset to accept that it is fine to do nothing about your financial condition.