Getting Rid Of Your Financial Demons
Getting on top of your finances is a long road. We make some advances, have some slip ups, make some big mistakes, sometimes learn from them. Here are the six demons of finance, and how to exorcise them, inspired by a fellow sufferer over at The Consumerist.
Procrastination
If I go to the gym early in the morning, I generally have a pretty good day because I know it’s over. If I sleep in, I generally head to the gym after work. So I spend all day thinking about going to the gym and wishing I’d just gotten up. It’s the same with finances; apprehension is so much worse than actuality. Feeling out of control or helpless when it comes to your finances is poison to mental health, so stop thinking about it and start doing it. Thinking about it only delays action, just start. Whatever it is, your savings, your receipts, your filing, your (ouch) credit card bill, start anything and you’ll feel better.
Ignorance
We lose money all the time because of the things we don’t know. What’s tax deductible? What assistance does the government offer? Is there a better loan, cheaper product? How can you write the best budget, spending diary, savings plan. Get informed, it’s easy to do. Google the relevant topic, talk to people who have achieved things you admire. Get in the know and you’ll start saving money.
Entitlement
Nice one, Consumerist. Entitlement, so true. I deserve this cup of coffee, I earned this massage, I have the right to have a lovely car. Needs and wants are not the same thing, and knowing the difference is a massive step towards financial stability. All those things are perfectly valid choices, but they are financial choices, and should be regarded as such.
Fear
A proper appreciation of the risks of investment is a fine thing, but being too frightened to ever invest in anything is only going to hamper you financially. Understanding your own risk profile will be a great tool to assist you financially, and seeking help from an expert about what investment options would best serve your risk profile and financial goals will help exorcise this one.
Exhaustion
Managing your finances is tiring. Start off too enthusiastically, and you’re at risk of burning out too soon. Working without the assistance of automatic payments, reminders of when bills are due, spreadsheets to make your money diary easier, is only going to fatigue you faster. Use the help that is available, it’s a much more sustainable financial decision than the alternative.
Jealousy
Ain’t getting any of us anywhere. What every one else has is irrelevant. You’re never going to know the full picture of their finances, there are problems and weaknesses for us all. Trying to keep up just because someone else is doing it is a quick way to undermine your finances. Chances are, someone envies what you have and boy could you tell them the problems with your scenario. Finances are always hard, for everyone. Instead, work out what you want and you’re going to get it.
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