The thing that no one talks about, but everyone wants to talk about: money. Everyone knows that money can make your life easier, but they don’t know how to use it and want to keep that a secret.
Anything that is covered in secrecy can lead to feelings of shame, guilt, low-self-esteem and so much more. We’re going to debunk some myths about money that are bringing you and your net worth down.
“I should know about good money management because everybody else knows”
You’ve never truly been taught about personal finance, but everyone expects you to just know it and if you don’t your irresponsible. Rarely do people ever know how to properly manage their money. They may know about budgeting, credit, or even saving money but a lot of times they learned that haphazardly through a family member or friend or through trial and error. It’s okay if you don’t know even the simple things about finances but what isn’t okay is not trying to learn once you realize you need to do better.
“I can’t save money because I don’t get paid enough”
If you make money you can save money. Stop comparing yourself to everybody else because we don’t know what their expenses or their income is. Even saving “small” amounts can make big gains through time. The sooner you start saving and staying consistent it really doesn’t matter the amount because of compound interest. It is best to start saving in a high yield savings account like one from Ally Bank. Compound interest is essentially your money, making money.
“A budget is restrictive.”
To the contrary a budget gives you the control to decide where you want your money to go. Without a budget you leave your money to chance and often will overspend. A purposeful budget, or zero-based budget, is a budget that is in alignment with your goals. If you want to save for your baecation, you budget should reflect how much you’re saving each month to achieve your goals. If you’re trying to build up an emergency fund, or pay off credit card debt, or save for a house make sure your budget is made to achieve those goals.
“I have to have six figures or be a millionaire to be wealthy.”
Being wealthy is more about the cost of the lifestyle you lead than it is about your income. Many people who make six figures are broke because they live above their means and they are drowning in debt. You can’t be wealthy if you don’t own your life. Get rid of debt and gain your freedom and increase your wealth building capacities. Real wealth is freedom, options, security, being comfortable, gracious, and content. You don’t have to spend money or even receive a large paycheck to achieve that. Wealth is determined by your net worth, your assets minus your liabilities. You’re probably wealthier than the person you think is ballin’.
Once you start to understand how to take control of your money you can start creating the life you want for yourself and afford it. You’re not alone. Everybody doesn’t know about personal finances because everyone wasn’t taught. The simple things we’ve learned all are lives, budgeting and saving, are the simple ways to be better with money and start building wealth. Open that savings account! Create your budget! Read some financial books or get a financial coach.
And as Bey once told us, “always stay gracious best revenge is your paper!”