3 destructive financial lies we live

The real issue is the little lies that we tell ourselves.

09:41 26 May 2014

Pay attention and you might even relate to some of the lies mentioned below.

1.    Just give it time; my financial problems will be solved.

Don’t you sometimes wish that when you are in such a difficult situation that you can just crawl under your warm sheets, hibernate and wake up in spring when everything promises rebirth and rejuvenation?  Unfortunately money problems do not just dissipate; it can only go away when you deal with it.  Inaction and remaining in a state of denial will just make matters worse.  You just have to bite the bullet and brace for some life-changing belt tightening resolve and putting as much resources as you can to paying off your debts.

2.    I don’t really need this right now and I can hardly afford it; but it is on sale, I can use my card to buy it and pay later.
   
Study shows that individuals in dire financial problems blame overspending for their woes.  The things that are nice to have but cannot still afford plague our subconscious and the credit card seems to have all the answers, until the time that payment becomes due. 

If you have maxed out your card and just paying the minimum payments, a debt of £15,000 at 18% will be paid in 13 years with £6,800 interest.

 3.  I do not have the money to save for retirement.

For most young individuals, saving for retirement seems pointless.  They believe they have a lifetime to prepare for retirement.  Right now, they have so many exciting things to buy, experiences to enjoy, and places to go.  
Saving, no matter how insignificant you might think the amount is at that time, can earn compounded interest over the years and will come to a bigger balance come retirement time.  The earlier you do it, the bigger income your money will yield. 

There is no point in continuing to live a lie, most especially when it comes to your finances and hoping that a windfall can save you just in time.