Negative thinking doesn’t always lead to adverse actions, but it can cause you to underperform and even influence your spending habits. Negative thoughts about personal finance can range from not wanting to start a budget because it seems like too much work or completely giving up on saving because “life happens.” There are so many things that can hold us back when we are trying to improve our finances; in this post, I will discuss three negative thoughts that are hurting our finances.
1. “I don’t make enough money.”
This is a widely spread belief amongst many individuals. As a result, many people believe that they don’t have enough money to save. Although many individuals do not earn enough money to cover their expenses, what matters is the decisions you make about how to spend your money. For example, saving just $5 every day will give you $1,825 at the end of each year. Similarly, making one extra payment on a monthly installment plan will help reduce the amount of interest you owe. To correct this thinking habit of ” I don’t make enough money,” keep track of every expense and ask yourself why you are spending money on them. Doing this will allow you to see which items are necessities and which ones can be cut back on without sacrificing too much of your happiness.
2. “Investing is too hard to understand.”
If you are one of those who are reluctant to invest because you find investment confusing, you are not alone. But, investing doesn’t have to be a complicated process. While there are many different investment options to choose from, you can always start with your employer’s 401(k) or another retirement plan. This is a good place to start investing, especially If your company matches your contributions. You may also consider using Stash and Acorn, which are both beginner-friendly investing apps. In addition, they will teach you how to create your own portfolio out of individual stocks and Exchange Traded Funds (ETFs).
3. “I will never be successful.”
Nothing can prevent you from achieving your goals, except for your own thoughts. If you believe yourself to be undeserving of success and continually tell yourself that you are not qualified for it, you will never obtain it. What you think is what you become. Negative thinking will undoubtedly lead to failure. Instead, be optimistic and let optimism guide you through the doors of success. When you affirm that you are capable of being successful, success will follow as a result.
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