5 Common Financial Lies We Tell Ourselves
False beliefs about finances can overshadow reality. They can also lead to missed financial opportunities. That said, it’s important to stop kidding yourself and accept financial truths. We’ll break down five common money lies we tell ourselves and how financial coaching can provide solutions.
The Lie
“I’m not good with money.”
Reality
Financial literacy can be learned and improved at any point in your life. There are many great financial literacy resources available to you.
Coaching Solution
Control your spending by developing a budget that works for you. Utilizing financial literacy resources can help with that.
The Lie
“I deserve it, even if I can’t afford it.”
Reality
You need to differentiate between needs and wants. Before making a purchase, consider whether it aligns with your financial goals and priorities.
Coaching Solution
Follow the 50/30/20 rule. 50% of your spending should go to needs, 30% should go to wants, and 20% should go to savings.
The Lie
“I don’t need to save for retirement.”
Reality
While safety nets like Social Security and Medicare exist, it’s still important to save for retirement on your own. The more you save now, the more you’ll have at retirement age.
Coaching Solution
Open a retirement account not connected to your employer. Gulf Winds offers Individual Retirement Accounts (IRAs).
The Lie
“Investing is too complicated.”
Reality
If you learn the basics, investing isn’t as daunting as it seems.
Coaching Solution
Take advantage of financial literacy resources, like books or videos, from trusted investing coaches. Once you have a basic understanding of it, make small, low-risk investments.
The Lie
“If I ignore debt collectors, they’ll go away.”
Reality
Debt collectors do not go away, so don’t panic. Instead, be proactive about paying off your debts.
Coaching Solution
Learn your rights as a debt owner. See what debts you can dispute, and come up with a debt repayment plan.
It can be easy to fall into a pattern of lies that set you back financially. But it’s prudent to break that cycle. After all, it can help you become financially successful and even build wealth!
Hunter Morrison
About Hunter Morrison
Hunter has freelanced for various print and radio publications across Northwest Florida, including The Bay Beacon, Navarre Press, Inweekly, Crestview News Bulletin, and WUWF. He was also the Editor in Chief of the University of West Florida’s student newspaper, The Voyager. In 2023, Hunter moved to Kenai, Alaska to take up a news reporting position with KDLL Public Radio. For fun, Hunter enjoys cross-country skiing, hiking, photography, thrifting, traveling, and looking for the best Thai food around.