In one way or another, nearly all of us lie to ourselves when it comes to our finances.
These lies prevent us from taking action and getting the most out of our money.
Here are the 10 biggest financial lies we tell ourselves and how they rob from our financial future. Once we understand these lies, we won’t fool ourselves any longer. We’ll act differently with our money. We’ll make the most out of our hard-earned cash!
#1. I Will Never Be Financially Free
Most of us don’t believe that financial freedom is a possibility for us. We’re committed to working 40 plus hours a week for the rest of our lives, but with no real plan of becoming financially free.
Zig Ziglar, one of the great motivational speakers, said, “If you do not think you deserve success … then you’ll do things that will keep you from getting [it].”
If we don’t believe financial freedom is a possibility for us, then we’ll act in ways that will prevent us from ever achieving it. We won’t bother investing like we should. We won’t bother boosting our income like we should. We won’t bother becoming intentional with our money. We won’t bother working towards our financial freedom!
Financial freedom is a possibility for all of us! Maybe not to the same degree, but it’s still a possibility. Don’t fall victim to the lie that you’ll never be financially free!
#2. I Don’t Need A Budget
Everyone needs a budget!
Those that fall victim to this lie, are ensnared by at least one of the myths that prevent people from using a budget. They think budgets are too boring, too time consuming, too complicated, too constraining, or just for poor people. None of these excuses are true.
With the right strategy, budgets are fun, liberating, motivating, and not very time consuming at all. After all, a cash flow plan is one of the greatest tools we have in helping us master our money.
See the The 10 Myths That Prevent People From Using A Budget and how to bust those myths.
#3. I Don’t Make Enough To Save Any Money
This is one of the most common lies people tell themselves with money. Very few people really have to live paycheck to paycheck. And when those instances arise, they should only last for a very short time.
Having to live paycheck to paycheck is more of a failure of the financial strategy you use rather than the amount of money you earn.
Most folks will live paycheck to paycheck unless they have a financial system in place that will automate their investing, automate their savings, and make them intentional with the dollars that flow through their bank account.
Check out Bank Like A Boss: 3 Simple, Unconventional Strategies to Get the Most Out of Your Banking to see how to automate your savings and bust the paycheck to paycheck cycle.
#4. I’ll Invest When I Have More Money
This is a common lie people tell me after finding out I’m an investor.
I’ll let you in on a little secret though: it doesn’t require a lot of money to start investing. You can start with just little chunks of each of your paychecks. I don’t recommend going small, but it’s possible.
Here’s another secret: you’ll never build wealth by waiting to invest. You will, however, accumulate plenty of it if you start investing early.
There is no sense in waiting to invest. Waiting only pushes your financial freedom further down the road.
#5. I Don’t Know How To Invest
For too many people, this is true. Don’t let it be true for you any longer!
Investing doesn’t have to be complicated, and for the vast majority of people it shouldn’t be.
Take the little amount of time necessary to explore this site and learn how to become an investor. The benefit of learning how to invest for yourself far exceeds the costs.
Check out The Best Way To Invest In the Market to learn how you can start investing today!
#6. I’ll Invest When I Have More Time
This is another misconception of investing. I invest in at least three funds every month, and guess how long it takes.
Zilch! Zero! Notta! No time at all!
Every month, money is automatically invested in the three funds I predetermined long ago. It’s my path to automatic wealth!
Sure, there’s a little time required upfront in deciding which funds to use. But after that, it’s pretty much all on autopilot.
Click here to learn The Best Way To Invest In the Market and see just how simple it is to start investing.
#7. I Don’t Waste Money
There are a select few that don’t waste money, but most of us, whether we like to admit it or not, waste some money from time to time.
We waste money on groceries that don’t last. We waste money on toys that don’t get used. We waste money paying more taxes than we should. We waste money going overboard on presents for Christmas and birthdays.
I have friends with boats that don’t go to the lake, campers that never go camping, atv’s that never get ridden, and playgrounds that never get played on.
Most people that don’t think they waste money don’t use a budget and have no real idea of how much money they lose every month.
Imagine the wealth you could have accumulated if every dollar you wasted would have been invested instead. Surely, you could have amassed a decent amount of money.
I know I would have a nice chunk of change, and I’m sure I waste a lot less than most folks.
#8. I’m Just Not Good With Money & Numbers
You don’t need to be a CPA or mathematician to be successful with money. You just need to be committed, disciplined and have the right financial strategy in place.
Create and stay true to a budget, automate your investing and savings, and constantly seek to improve your financial future. Those three principles will have a much greater positive impact on your finances than most anything else.
# 9. I Don’t Have Enough Time To Manage My Money
Managing your money every month shouldn’t take much time at all.
There’s two primary functions each month you need to take care of to manage your money successfully: 1) creating and using a budget, and 2) allocating your cash to all of your intermediate financial goals.
With the help of online budgeting platforms, you can create a budget in less than 10 minutes. And it only takes a few minutes each week to review your transactions, categorize them accordingly, and ensure you’re properly following your cash flow plan.
Allocating your cash to all of your financial goals shouldn’t take much time at all either. I have about 20 different accounts with 3 different banks, and it takes me maybe 10 minutes each month to make sure my cash is where I want it to be.
I’m able to do manage all these accounts so quickly because I’ve created a slick financial system that manages itself for me. I rarely have to get involved.
I call it banking like a boss!
You can do the same thing. You can use the same strategy and it’s simple to set up. Read Bank Like A Boss: 3 Simple, Unconventional Strategies to Get the Most Out of Your Banking.
#10. The Market Goes Up and Down & I Don’t Want To Lose My Money Investing
True. The market does go up and down and we can lose money. But over the long haul the market has performed very well.
Since 1995, the market has suffered 2 huge blows—the Dotcom crash of 2000 and bust of 2008. In both crashes the market lost almost 50% if its value. However, despite these huge busts in the market, it has still managed to produce an average return of over 11% per year since 1995.
In other words, if you gave into your fear and decided not to invest, you would have missed on an average return of 11% per year.
The risk of investing is not nearly as bad as the risk of not investing.
Bonus. I Don’t Care To Be Rich
Neither do I. But I do care about my freedom. I care about being able to spend more time with my family. I care about progressing. I care about making the most of my life.
I value my freedom and I value my family. Money is a tool that increases my freedom and enables me to spend more time with those I care about most.
If I’m wise with my money, then I’m able to focus my life on what I value most.
The goal isn’t to become rich. The goal is to become free!
There you have it. These are the 10 biggest lies we tell ourselves about our finances. When we fall victim to these lies, believe them, and use them as a crutch, we prevent ourselves from taking action and getting the most out of our hard earned money.
We can escape each of these lies and master our money!
Like the great Zig Ziglar said, “You were born to win, but to be a winner, you must plan to win, prepare to win, and expect to win.”
Your Freedom Financial Coach is dedicated to providing you with guidance to set you up to be a winner!
Don’t let yourself fall prey to these lies. Read and apply the principles that are found in the linked articles within this post:
- The 10 Myths That Prevent People From Using A Budget
- Bank Like A Boss: 3 Simple, Unconventional Strategies to Get the Most Out of Your Banking
- The Best Way To Invest In the Market
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