Why is it that many people have a bad relationship with money and some don’t even have one at all? I didn’t, at least not a healthy one. Growing up money was scarce so I felt money was unreachable for me. After my father passed away money was so scarce that at times we couldn’t afford the bus ride to school. So when I got independent that lead to really bad decisions. I gave money more power than it deserved. I wanted to make up for times I felt my family couldn’t afford something, I began to develop bad money habits. That plus events in life for some reason or another made me borrow money from credit card companies. I didn’t even fully understand how credit cards really worked! Yikes, that was a horrible formula for disaster. 55 plus thousand dollars in debt later I needed to get money smart! I began to establish good habits and let go of the bad ones. Here are some bad habits and way of thinking that I needed to let go of that you may have to let go as well.
1.Believing you can’t obtain money
Growing up I use to think money was just not going to be in my life, At least not in abundance. I thought that was just something that happened to other people. Stop thinking this way! The moment I began to think money was in my life and that I had abundance of blessings I began to see opportunities come in to make money. We attract what we believe.
2. Believing you need to get into debt to build credit and wealth
I know this sounds crazy but you don’t need credit to build wealth, you need money! Think about it, you need to borrow money to be able to borrow more money?
So if you want to buy a house you might want to take on a mortgage right? in order to borrow that money you need to have good credit. How do you build credit? you borrow money. Now if that sounds confusing that’s because it is. It is designed to keep you on a loop of endless interest paying. The more interest money you pay , meaning the longer you have your credit cards etc., the better your score. That just sounds like throwing away money. A better and MORE SIMPLE way to approach this is to save money and you buy what your heart desires. Yes you will have to sacrifice instant gratification but I promise you it will be cheaper then having what you want now but paying more for it down the line.
3. Impulse Purchases
Now I know this takes a lot of discipline to not fall into. You have a bad test, your boss pissed you off, your partner is just pushing your buttons, someone cut you off in traffic, your mom just won’t get off your back. I know! You have a moment of weakness and you say this next line. ” I deserve it “. Don’t fall into that trap. Impulse purchases are purchases done without thought or purpose.
4. Not having a plan
I have talked to you in previous blogs about the importance of goals. Clarity is King. If you are clear of why you do things you will actually accomplish them. So if you have a plan for your money you will actually create wealth.
If you stop living paycheck to paycheck. If you begin to tell your money how to behave and where it needs to go, guess what? It will obey. Making a budget is the best way to create an action plan for your money. That way you are not spending blindly. I know this is common sense but you have no idea how many people fail to do this one important and simple thing. I know I did for so long. I spent my money so blindly it got me thousands of dollars in debt. So start a plan now.
5. Not thinking of the future
As soon as you start making money you should start thinking about your future. Many of us start thinking about retirement, children, life insurance, home buying, and a life changing event right when it smacks us in the face. Not a very smart way to go about things. To begin, if you have an emergency fund it will make life much easier. That’s money that will save you if you have well, and emergency. Dave Ramsey, a best selling author and my hero, is the number one person to tell you that having an emergency fund is how you keep Uncle Murphy out of your home.
Bonus: Believing money is evil
When I was younger I was afraid to be successful because I felt money would make me evil. I saw people in power and realized all the horrible things they ended up doing. Drugs, corruption, treat people with no respect among other things. That was just not who I wanted to be. What I didn’t realize then is that its just not true. Money doesn’t make people evil. People make themselves evil. We can see money as good/bad or we can see it for what it is , a tool. Money can be a tool to create jobs, empower those with great ideas, help people in need, bring communities together. Most importantly create wealth for you and the generations after you.
So let go of all the bad habits and way of thinking. Start creating wealth for you and your family!
“You must gain control over your money or the lack of it will forever control you”