If you’re struggling to balance your budget each month or just keep finding yourself on the verge of a financial crisis, it may be time to shift your perspective on how to manage money.
Many of us are standing in our own way when it comes to managing money effectively because we have false beliefs about making and spending money, or we believe some common misconceptions about budgeting.
If you’re ready to turn your financial situation around, it may be time to re-evaluate your relationship with money.
Here are five money myths that are hurting your finances.
Myth #1: Things Will Be Better If I Just Made More Money
This is a popular misconception where we believe that making more money will simply take care of our financial problems.
The truth is that you can be successful with managing money no matter what income bracket you fall under — you just need to adopt some habits that will make it simple to budget, organize your finances, and spend within your means.
Whether you are below the poverty line or earning six-figures a year, you will run into the same financial problems without good budgeting and spending habits.
Myth #2: I’ll Worry About Budgeting Later
If you’re a person who says “I’ll worry about my budget later, when I have to,” you’re essentially ignoring your finances until there is a problem. That can be a major financial mistake.
Maintaining a realistic budget needs to be an ongoing process and you need to have a fairly accurate idea of how much money you have in your savings account, what your baseline expenses are each month, and where your hard-earned money is actually going.
Postponing all budgeting activities until there is a problem is a recipe for financial disaster.
Myth #3: One Time Won’t Do Too Much Damage
Even though it may be very tempting to just ‘let go’ when it comes to spending once in a while, or to ignore the budget this month because you have other things to worry about, that “one time” can end up costing you more than you realize.
Consistency is one of the keys to success with money management and you need to avoid giving yourself the option to fall off track.
Myth #4: I Can’t Afford to Get Financial Help
If you’ve always struggled with budgeting or you have no idea how investment planning works, you may be setting yourself up for financial ruin in a few short years. When looking for assets to invest in, be sure to do proper research as not all types of assets are allowed in IRA’s.
Invest in a financial planner or get help from a tax accountant to avoid any major money mistakes in the near future.
Myth #5: My Money Problems Aren’t My Fault!
It’s easy to blame financial problems on someone or something else — a low-paying job, family emergencies, missing out on a raise, or having to pay more for taxes — but taking responsibility for managing your money is the first step to success.
You can make many life decisions that will put you in a better financial position and avoid self-defeating thoughts and habits that will make it difficult to make positive changes.
If any of these misconceptions sound familiar, it’s time you stopped believing these five money myths and started taking a proactive view toward fixing your finances. That’s a great start and a key step in getting back on track economically, or taking your finances to the next level.