Your Money Relationship Is Based On Lies
Money, money, money
Must be funny
In the rich man’s world.
It’s not the depth of lyrics that makes the Abba song so popular. It’s the fact that it taps into our wildest dreams; becoming rich without having to worry about anything else anymore. As a result, you also need to open Google search to find hundreds of suggestions, strategies and successful plans on how to get rich overnight. Here’s a little hunt before you sign up to your next budgeting membership: you’re not going to succeed even if you follow the plans strictly. The reason is simple; most money-related strategies tend to fail in the long term. Why so? Because your relationship to money is built upon lies.
Indeed, at its core, your financial situation serves one specific purpose only. It gives you the opportunity to purchase both the things you want and the things you need. We have to accept that money is not an end per se, but it is a mean to achieve our goals. However, when you consider the majority of financial plans, most recommend maximising savings, investments and funds as a priority objective. In reality, if we accept that money was invented as a way to facilitate trade, it’s easy to understand that strategies that focus on accumulating wealth to no extent fail to make the most of it. It’s time to question your perception of money and move your finances to the next level.
#1. You should refrain from indulging
Unless you’re planning on becoming the next martyr, there’s no valid reason why you should lead a life of deprivation. While you can’t afford to purchase everything you see and want as you might be wasting your money on stupid things, it’s important to draw a clear line in your mind between excess and moderate indulgence. For instance, we all know that brand products can be up to 30% more expensive in the shop. But it doesn’t mean you should forbid yourself to buy the brands you like – in moderation. Ultimately, the question is not how much an item costs as long as you can afford it without putting your finances at risks, but it should be how much value can the article bring into your life.
Nobody can remain disciplined about their budget forever. The more you cut down on indulging purchases, the more at risk you are of finding no satisfaction in the knowledge that you’ve got money in the bank. Admittedly, indulging a little is fine, but you need to be careful not to overdo it.
#2. Using credit cards is dangerous
Ah, credit cards. We love to hate them. Credit cards are regularly blamed for increasing debts among the most vulnerable population. In reality, it’s a bit unfair to blame it all on the credit card. If you stop using your credit card, you’re not in a better situation as your credit score will be affected. Additionally, credit cards can let you manage expenses by spreading the costs over a long period of time, meaning that you can handle your budget more effectively. It’s fair to say that when misused, your credit card can be the last push over the cliff of financial doom. But if you utilise your card to improve your credit records by making payments on time, they can help you build a trustworthy financial profile. Additionally, some premium credit agreements can also get you additional advantages. The Premier HSBC card, for instance, has a voucher programme for its clients, giving you a discount for your favourite brands or even a 2 for 1 meal in restaurant chains.
#3. Borrowing money makes it worse
There’s a misconception when it comes to borrowing money. Most finance positive strategies you can find online recommend avoiding any kind of loan while building stability. In reality, while it’s important to understand that you should stay away from loan agreements that you can’t afford to repay, there’s nothing wrong about applying for a fast loan that boosts your financial situation. Imagine the following scenario. You’re about to launch your freelancing career, and you’ve already got a few projects lined up. But your laptop suddenly died on you, and you find yourself unable to continue your work. A timely financial agreement that lets you purchase the equipment you need to carry on with your activities can help you to maximise your earnings. Ultimately, the rule is simple. If a loan can significantly improve your situation and boost value, it’s likely to drive a positive return, meaning the loan actually makes you richer.
#4. Budgeting helps you to manage your money
Strict budgets are not only extremely complicated, but they are also dull. According to Chris Reining, an IT professional who retired at age 37 with more than $1 million in the bank, budgets don’t work. Indeed, for Reining, a strict budget is like a strict diet. One day or another, you’re likely to fail. Instead, you need to gradually shift your mindset towards healthy finances. Instead, he suggests turning your financial goals into something visual so that you can track your expenses and income mindfully. Reining’s goal was to become financially independent, so he began to move his focus to saving and investing with a high return to replace his wages. Ultimately, with a clear understanding of what he wanted to achieve, his financial strategy didn’t require monitoring meaningless amounts but working towards a tangible goal.
The most popular investment strategy for inexperienced investors is to buy a property to let. Despite the new tenancy regulations, real estate remains the most stable form of investment. But buying a property is not a viable solution for everyone. While investing in the real estate market is an option, you need to think outside the box. Indeed, you don’t have to buy a house to make it work. You can join a crowdfunding platform to participate in real estate maintenance and management via a percentage – based on your financial contribution. You can join the investment market and earn an income without having to break the bank in the first bank.
It’s time to reconsider your interaction with money. From extreme saving strategies to fear of borrowing, your attitude might be costing you both wealth and sanity!