Are you lying to yourself? What financial decisions are you making that’s growing that wooden nose of yours? Luckily, Gennavieve Lyons is here to help handle the truth!
They’re the little lies we tell ourselves to justify being financially lazy. The excuses we use to take shortcuts which can cost us big-time in the long run. When it comes to money, we make excuses although we know deep down we’re fooling ourselves, but still we do them anyway. It’s best that we avoid the easy way out and put in hard efforts to make a financial difference that will benefit us for the long run. Here are a few lies that may run through your head when it comes to money:
“As long as my job pays well, it’s justifiable if I hate it”
Success comes easiest to those who love their job, and staying in a job that you hate even if it pays well, means that your heart’s not in it, and can result in a short-term career, since passion and commitment are not present. It’s better to improve your skills and do something you love and be happy, rather than getting a job that you earn well, but with no growth or happiness. More passionate colleagues will leap ahead and you’ll be left wallowing in self-pity. Yes, it’s scary to make a change, just have enough confidence in yourself to give anything a go, and if it doesn’t work out, then go on and do something else. No regrets.
“If I turn a blind eye, somehow my finances will work themselves out”
Big lie! The only way to work your way out of a financial jam is putting your own effort in to do so. No one can help you but yourself. Planning and setting a goal on how much more you’ll earn and how much less you’ll spend for a set period of time AND sticking to that regularly will keep you on track and balanced.
“I should buy a home because that’s what grown-ups do”
Owning the Australian dream has been the basis of building wealth in this country for generations. In my opinion, renting is a better financial option, but, and it’s a big but, only if you have the discipline to invest the difference between the rent you pay and the mortgage repayment you’d have to pay into other assets. It means working out that gap and religiously investing that amount in shares, managed funds or investment property.
I currently rent a property by the beach, my ‘lifestyle house’. Because houses are negatively geared in this area, it means that rent is cheaper than if I was to own it and pay a mortgage. So in the meantime I can live where I want and buy properties that make a better investment. If you don’t have that discipline then it’s better to buy a home and focus on paying down the mortgage as your investment strategy.
“If I dip into my savings now I can always make up for it later”
Earning extra to pay for something you want instead of raiding your savings is far better and productive. Leave your savings untouched, and work hard for something you want will make you appreciate it more since you’ve worked harder to get it. It’s called delayed gratification.
“If I get approved for a loan or credit limit increase, I can afford it”
This is probably the most dangerous of all lies. Never trust the bank’s offer in terms of increased credit limits or loan amounts, only you really know what you can afford. Better to stick to your budget and work on it.
“I’m too inexperienced to start investing”
This statement makes my blood boil. You will remain inexperienced until you start investing. In the meantime, educate yourself to a point where you are comfortable to enter the property or share market. That’s what I’m here for… If you currently feel this way, message me and I will shake you out of it! It’s no longer an excuse to plead ignorance.
“Everybody works until full retirement age”
Only 20% of people retire when they had planned to, the other 80% have the decision made for them either through redundancy, illness, disability or death. Better to always plan and aim for an early retirement and treat any extra time as a bonus. We must enjoy living life, not just working to live.
Let’s be mindful of our finances, the earlier the better. Realistically, money is up there with oxygen in terms of necessities, and making good money choices and being able to save requires great effort, work and discipline; however these choices will soon become unconscious habits. Don’t sugar-coat lies and make excuses any longer!