It might be difficult to have a positive relationship with money. We live in a world where spending is expected of us all the time, with little consideration for saving or fully comprehending the consequences of our decisions. Reaching our financial objectives may also be hampered by our friends, family, and loved ones.
These three obstacles could be preventing you from succeeding financially.
You’re not a wolf; you’re a sheep.
The natural tendency is to follow the herd. As we go through life, it provides little to no opposition and is comfortable. It can be quite harmful when it comes to money.
Imagine having to make a choice. You have received an invitation from your buddies to join them on their trip to Las Vegas. Everyone is offering suggestions for where to stay and what to do once you arrive. When you arrive, you feel comfortable spending $2000 on lodging, airfare, and pocket money. Everyone but you has agreed on the itinerary, which will cost $3000. Now you are faced with a problem. Do you offer resistance, agree to pay the higher sum, or withdraw entirely? That is, will you be a wolf and stick to your initial budget, or will you be a sheep and follow the crowd?
Following your first budget will provide you the best chance of future financial success, regardless of how challenging or uncomfortable it may be. It might be time to reevaluate who you hang out with if your buddies don’t get it or aren’t prepared to make concessions.
You don’t manage a budget, but you do have one.
More than 90% of Americans manage their finances using some kind of budget, according to debt.com. This would seem to be a good thing on the surface. Further investigation revealed that 74% of Americans report overspending, with 55% claiming they spent foolishly, according to a different Clever Real Estate poll.
There is a big difference between having a budget and managing it. For instance, you are $200 short each month if you earn $3,000 but spend $3,200 on a regular basis. Instead of accumulating savings for the future, you are incurring $2400 in annual debt.
The difference between having and following a budget is cutting back on purchases and, if you can, finding ways to save money so that you stay below your monthly income.
You have jackals all around you.
Everybody has heard the tale of the lottery winner, the famous athlete, or the famous actor who suddenly finds themselves broke after five to ten years. Among the primary causes are excessive spending, tax consequences, and giving gifts to friends, family, and acquaintances. When it comes to freebies, the wealthy aren’t the only ones affected; regular people are also affected.
Most likely, you’ve seen situations where someone either fails to reimburse you, gives you the bill for dinner, or pays less than what they owe on an unpaid debt. It is one thing to decide to pay for a friend or relative, but it is quite another to have that decision forced upon you against your will.
It doesn’t make you a bad person to be greedy with your money. If you can share your riches, I’m not saying you should never do so. I’m only saying that you won’t be able to help others or yourself in the future if you don’t have the extra money to do so without running the risk of becoming bankrupt. Holding others responsible for your finances is very sensible.
Keep in mind that managing your finances effectively is more important than earning a lot of money. You can take charge of your money and build a more secure future for yourself by tackling these typical obstacles.