Snoop Dog said it best, he was rolling down the street…..with his mind on his money and his money on his mind. I get it, budgeting and managing your money may not be fun for you — especially if you’re always in the red. There are 7 common money mindset myths that, in the words of the Geto Boys, have your mind playing tricks on you. I think I just showed my age with those two recording artists.
If you change your mind you can change your money. It sounds simple, but I am here to tell you it works.
Money Mindset Myth #1 – A Penny Saved Is A Penny Earned
We have all heard that old saying, but it takes more than not giving that penny to the cashier to create meaningful sustainable wealth. In addition to saving, you must also multiply those cents you’re saving to truly feel the effects. Although the adage may be accurate, it’s also incomplete, and certainly not something you can base your future fortune around. Saving pennies, or any amount of money is good, but that’s another blog post for another day.
Money Mindset Myth #2 – I Don’t Need Money Help
Paying for a fitness coach is a want for some and a need for others, but if you have zero experience straightening your finances, then going solo will absolutely stifle your growth. Investing in a finance coach will lead you down a safer road lined with superior choices, better decisions, and ultimately, a finish line you’d probably never reach alone. There are also websites and apps out there that will help you manage your accounts and financing and you can also integrate them into other services that you use for your business. A prime example of this is salesforce quickbooks integration. All this helps you streamline your money and make it easier for you. Note: I am not saying this because I am a financial coach, I am saying this because it’s true and I wish I would have had one when I was broke. Invest in a coach and train for financial success.
Money Mindset Myth #3 – Budgeting Saves Me Money
As noble as that might be, it isn’t accurate. Write down everything you earn, subtract everything you spend, and allot a certain amount towards savings. You might even be trying to save money when it comes to your lunches by using something like this mealpal coupon, you might be trying to save another way completely though. Then you’re golden, right? No, not really. You can record your pluses and minuses all day, but if you’re not acting on what you write, your budget means nothing. Carefully plot and plan, then follow through on your budget to see optimum success. Here is a sample budget for you and I even gave you a copy of my budgeting e-book below, to help you get started
Money Mindset Myth #4 – If I Earn More, I Can Spend More
You worked 60+ hours last week. You are so tired that you can’t see straight when you come home, so you collapsed into bed. You don’t mind the exhaustion; at least your paycheck will be fat. When it’s time to reap the rewards, you happily head out, paycheck in hand, to shop or spend frivolously. “Look at all this overtime! I deserve a ‘little’ something for working so hard!” Is what you say. That’s why you’ll stay right where you are in your finances. I know that was harsh but someone has to tell you and because I love you, I will tell you. That “little” something extra is called overtime pay, and THAT is your reward. Stick all your “extra” earnings in a special fund or savings account, then leave it there and watch it grow, rather than disappear. It often amazes people when I tell them how I still live off of $12.88 an hour, what I made when I started working at my job 8 ½ years ago, yet I make substantially more than that.
Money Mindset Myth #5 – If I Don’t Risk It, I Can’t Lose It
Having a smart financial game plan means taking intelligent risks. You’ll never make a mint if you don’t make smart investments. Fail to take SMART risks with your money, and the branches of your money tree will be bare. Stock valuations are volatile, but individual investors can still profit on the expansion of the economy by buying into a broadly diversified index fund that tracks the total market — as long as they have a long term vision. Know a good investment when you see it, and be smart enough to make it.
Money Mindset Myth #6 – I Make Enough
You bring home your check every two weeks. Your house payment is always made on time, and your bills are current. Yet, you have nothing left for savings, and little, if any, for life’s extras. You might make enough, but you’ll never reach financial independence if you can’t get ahead. You don’t want to be 50 without any retirement assets, and you don’t want to retire from your job at 65 years of age and have to pick up a few hours here and there at your local Wal-Mart. Assets determine your net-worth, and if you want to grow your financial portfolio, you must find a way to start saving and investing.
Money Mindset Myth #7 – My Today Is Taken Care Of
Too many people live in the moment. In today’s economy, it’s difficult to look past now to see the promise of tomorrow, I get that. Yet, right now is when it’s essential to plan ahead. What will your reserves be like as you head into retirement? Not putting away what you can now is a guarantee that you won’t have enough when you need it in the future. Start saving into a retirement fund today, so that you can start planning for future success. Now it’s your turn, let’s start a dialogue. Tell me what money mindsets may be messing with your money. If you wouldn’t mind, click the click to tweet above and share this post along all of your social media platforms.