There is always a time in life you plan to do something, which never goes quite as planned. Ever happened with you? We all have that time were reality comes crashing down on us and reminds you to have a precise look at your savings and not believe the money lies you hear. It maybe that you are getting ready to purchase a home or a car, but it’s not until you don’t set eyes on your savings you really know whether you can or not. After this, you usually go about fixing your finances, which means you may:
• Set up your budget
• Revise your budget
No matter how perfect your budget is, it may be that you are still unable to save any money. In such situations, you need to take a better look at things and see whether it’s actually the money or the money lies you are getting caught up in. you will usually get the answer that it is you lying to yourself.
Turn A New Leaf
In this situation, you usually have to turn a new leaf and be more honest with yourself and stop falling into the money lies. Lying to oneself is something the majority of us do so we do not feel bad about shortcomings. However, the danger of this is there does actually come a point where we begin to believe these lies and stop improving. So, if you truly wish to turn your life around, it is time to have a good look at what you’re doing and stop doing this. Some of the most common money lies you will come across are listed below.
One To Five Money Lies
• I won’t retire so don’t need to save
• I will begin to save from tomorrow
• I don’t understand investing and it is too risky
• Unless I buy a car or home, my credit score is not significant
• I won’t have kids or get married, which means I don’t need to save for them
The first of the money lies is telling yourself you will not retire, because the truth is, you will. You may love your job at the moment and may think you can easily work till 70, but the truth is that the job is not in your control. Anything can happen, which causes people to leave work where they are unable to work anymore. The second lie is when you tell yourself you will begin to save from tomorrow. The reality behind this is that tomorrow never comes, which means there will always be things that prevent you from saving. You may think investing is a risky option, but the truth is you never have to read complicated books and papers for this. Keeping your money in a bank account that is safe is all you need to do. In regards to the credit score, many think this is insignificant unless they are purchasing a car or home. This is not the case, as the credit score has found its way into many financial areas, such as:
• Rental companies
The fifth of the lies relate to you stating you will never get married. This means you do not have to save for a wedding. You need to accept the reality, which is even if you do not want to get married; another life event may come up. Alternatively, you may just fall in love and even decide to have a baby as it is life and anything exciting and surprising can happen.
Six To Ten Money Lies
• Renting is wasting money, so I should buy a house
• I don’t get paid enough so cannot save enough
• If I am approved with a specific loan, that means I can handle it
• If I make a budget I am unable to have a social life
• I am healthy therefore do not need health insurance
If you are currently renting and think you are wasting money, you need to know that purchasing a home is not always a good idea. This is because renting is much better than buying in some cities. One of the well-known money lies is saying you cannot save as you do not get paid much. Regardless whether it is $1 or even $100, a saver will always save, even if it’s only a little. If you are in the misconception of thinking you can handle a loan merely because the bank is letting you have it, you are making a big mistake. One thing you must know is that banks love it when you are in debt so make sure you don’t let them take advantage of you. If you think you have to sacrifice with the social life once you start to make a budget, you will be surprised to know that are budgets are actually life savers. You will never have to worry about affording something if you are always aware of the answer. You should never fall into the money lies that insurance is for sick people. Accidents usually happen unexpectedly and if you happened to suffer from one, what would you do?
Eleven To Fourteen Money Lies
• I don’t need savings as I will get Medicare and Social Security
• I am set in life as long as I have a college degree
• To build wealth, I need to be rich
• During retirement, my expenses will be much less
One thing you must understand is that Social Security is never enough to cover all your needs. You are never set in life with a college degree as this also includes a massive student loan, which needs to be paid off. A degree in no way guarantees you a job. You do not need money to make money, as you can always opt for freelance. Your expense may decrease in retirement, but there will be a whole lot of new expenses.