Change Your Mentality About Finances, Change Your Financial Woes


The average American owes over $15,000 in credit card debt. That doesn’t even include a mortgage, utility bills, and all the other monthly expenditures that can drain even the heftiest bank account. The key to getting your finances under control is to change your mindset about purchases. If you begin to see wants and needs in a more healthy way, you won’t jeopardize your financial future. If you change your mentality about finances, saving for the future can be simple, and it won’t feel so sacrificial.

The deserve mentality

The attitude mistake that most make toward shopping and purchases is thinking “I work so hard I deserve it.” A self-fulfilling prophecy, in thinking that way you are only tying yourself down to working harder and more hours to compensate for your rewards. Justifying making purchases by feeling like you deserve them will only lead to a lifetime of never catching up.

You don’t deserve to have things that are outside of your budget because you work hard. In fact, if you didn’t spend as much money as you do, you wouldn’t have to work so hard all the time. Putting priorities in place and not making justifications for things that you want and don’t need, can set your financial future up so that you can have the things you want later without having to work so hard for them.

Credit cards are loans

When a credit card gives you a maximum limit, they are not telling you-you have money to burn. Many look at their credit limit as a personal loan. If should not apply for a credit card Winnipeg, right away, you would be much better off getting a loan from a real bank if you need one. Every time you use your credit card and don’t pay it off you are paying way more for it than you think. That cup of coffee can quickly become ten if you keep a revolving balance on your card.

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Getting into trouble spending money you don’t have, but thinking you do, is a hazard of carrying and using a credit card. To stay safe, don’t ever purchase anything on your credit card that you can’t pay for at the end of the month. Unless it is a true emergency, a credit card should be thought of as a safer way to carry the cash you have, not an endless stream of money.

Don’t see what you grew up with as what was yours

When children say “I am rich,” what they really mean is that their parents are rich. In reality, that has nothing to do with their financial situation. Often children think that they have the same budget they grew up with. Landing many Millennials into trouble, they are relating their spending habits when spending their parent’s money as their realistic budget as an adult starting out.

When you begin living on your own, you have to earn the right to have disposable income. Many think that they can live the same standard of living that they had when they were being paid for by their parents. Trying to have the same standards when they don’t have any money leads them to spend outside their means and put themselves in debt. Everyone has to start out at the bottom unless of course you were born Donald Trump. Building wealth starts by being responsible and saving, not by being overcome by impulse wants that you can’t possibly afford.

Not planning ahead

Many young people don’t ever save for a rainy day. There are things in life that happen, and if not planned for, they can have you paying forever. Not being insured properly, buying a car you can’t afford, or taking a mortgage that puts you in the red every month is a recipe for disaster. Just one emergency can get you behind to the extent that you will be digging out forever. People who are successful always plan for the unexpected and have a buffer for times when things go wrong. Of course, you can’t see the future, or what can happen, but putting some away in case something should befall you is always a good idea.

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There are ways to grow wealth, and then there are ways to ensure that you won’t be able to. Plan ahead and change your mentality about your finances to achieve the lifestyle you desire for your future.

About the author

Mark Holland

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