Start by asking yourself a few simple things about money; Are you where, you want to be with your financial situation? Have you decided that you need to start to save from the next month? Or that savings can wait; you are too young to start?
The answer to these simple questions, shape how we think about money; and our belief system regarding our finances defines how we save, invest and spend. While the right amount of beliefs can push us to excel, the money lies we tell our-self can often hamper our financial growth trajectory.
Here is a list of three money lies you need to stop telling yourself:
I deserve to spend money, I work hard!
Ok, let’s get a few things straight at first. Money does allow you to enjoy your life, but spending it to compensate for having to go to work or working hard is not a healthy way to take care of yourself. You definitely deserve to spend money in ways that secures your financial future and supports your goals. But you don’t deserve to spend more than you earn! It’s time to change your thinking about what spending can do for you. When you work hard, you need to find ways to recharge and relax such that they don’t negatively affect your financial situation.
Age is just a number
People often fail to acknowledge the importance of age, when it comes to planning your financial goals. And as per practice, people generally don’t save when they are young and start understanding the importance of it much later in their lives.
Hence stop telling yourself, that you are young, or you have enough time left before you need to save. Identify your needs and start saving right now – because “you are never too old to save”.
Problem with money – guess I should ask my family & friends
While people take earning money seriously, they rather lack objective on investing their money. Most of the people rely on their family and friends for advice when it comes to managing their money. But that is where we go wrong, investing money is a full-time job; it is a smarter choice to let a professional manage your money, rather than relying on heresy. Hence, leave behind any age-old wisdom you have gained and go to a financial advisor now!
Most importantly always remember that our lives become what we repeatedly tell ourselves. If you keep repeating money lies, instead of becoming the money savvy person you aspire to be, you’ll stay right where you are. (Author is the head of Personal Wealth Advisory at Edelweiss)