Everyone knows that building wealth can help to ensure financial security in the future. Yet, it is a small number of the world’s population who have had the opportunity and fortitude to save money consistently.
In some cases, this is because putting money away is not the easiest thing to do. It’s a tough habit to form. As a result, we don’t give ourselves time to save, only time to spend.
These behaviours cause us to start believing specific money stories about our lives, and the problem becomes persistent when we start believing what we tell ourselves. When it comes to money, there are a lot of beliefs that are not true. Some of these are our own, and others come from our parents and the people around us.
We need to reframe our minds and tell ourselves positive things if we want to progress towards greater financial security.
Here are five things to stop telling yourself about money.
- I don’t need to save for retirement because I won’t retire
Even if you love the work you do, always keep in mind that it won’t be forever.
One of the lessons we should take from the world upheavals of 2020 is that we can encounter disruptions that can lead us to lose our income prematurely.
Many – especially young people – tell themselves that it’s not yet time, or that they simply don’t need to build up reserves yet. Retirement is changing, the way we prepare for it and engage with it is changing, but that doesn’t mean we shouldn’t be saving for whatever that eventuality might look like.
- All my money should be in a savings account
The money in your bank savings account may be sufficient for several months as an emergency fund, but keeping all of your savings in there is not sustainable. Money that is not compounding will decrease in value because of inflation.
There are various options you can explore that will help to invest money that will generate interest. Tax-free savings accounts (TFSAs) and ETFs are worthwhile entry options that we could discuss.
Having money in your savings account for the daily purchases or necessary transactions is practical and wise, but also, have money growing somewhere else.
- Investing is inaccessible because it’s risky, complicated and only for the wealthy
This belief is one of the reasons some of us do not even start investing. Thinking like this creates a more significant risk that will complicate your financial life a lot more in the future.
The best way to overcome it is to consult a professional financial advisor to help you with the advice you need to navigate the risks. This will help you to discover what opportunities there are for you to invest in, take it in manageable steps and grow your wealth right from today.
- Only rich people can afford to build wealth
For a lot of us, when we hear the words savings or investment, we immediately think of an amount with many zeros. Sometimes we picture a mogul in a big shiny car. We tend to believe that saving is for a particular, exclusive club.
You have the ability to afford the lifestyle you would like.
Even if you’re young, you can build up to your own multiple zeros if you start today. You can start with anything you can afford. A little bit every month creates the habits of wealthy people.
Start by honestly reviewing your spending habits and budget. If you find unnecessary expenses, cut them and save it to cultivate the habit of building wealth.
For many of us, we tend to believe that saving and investing is for a particular age group or the elite, people who can afford to save. But you have the power to create your own wealth.
Young or old, you can start saving with a small amount. Be honest when reviewing your spending habits, cut out the unnecessary expenses from your budget, and begin cultivating a habit of saving.
- It doesn’t matter because I’ll always be in debt
Getting out of debt will require more work than it did to get you into debt. It is not easy, but it is possible.
Conquering your debt doesn’t need a sophisticated strategy or a massive windfall from the lottery. Paying off one debt at a time will improve your perspective of your financial situation and get you to believe in your power to live debt-free. The little you can contribute will undoubtedly reduce your debt.
Here’s the trick: it all starts in your mind. If you learn to develop a more positive outlook on how money works, you’ll discover your power to create the wealth you need for the life you want.
Saving is for everyone, and there’s no better time to find out how you can start than now. Start today!