You do not have to go too far to know that we tell many lies about money that could be contributing to keep or grow our debt. Another very obvious thing we should know is that wealth has nothing to do with money. Being able to get out of debt, start a new business, achieve some other type of financial goal or get out of debt has more to do with mindset change.
According to a new report, the percentage of indebted Brazilian families closed the year 2017 in 62.2% of the population. The data were registered in December and are from the Consumer Indebtedness and Indebtedness Survey (Peic), conducted by the National Confederation of Trade in Goods, Services and Tourism (CNC) and released in early 2018.
The number of families that defaulted, ie with outstanding debts or overdue accounts, stood at 25.7% in December, up from 24% in December 2016. The number of families that declared that they were unable to pay their bills or debts in arrears stood at 9.7%, up from 9.1% in December 2016. This has a cause, below are four lies about money that keeps people always in debt.
I do not know anything about money and save money.
Of course who says this is a tremendous liar. There is so much information on how to save, save, and multiply money on Google that there is no way to use this kind of excuse.
Obviously not all financial information is good to follow, but to tell this lie “I do not know anything about money …” is basically based on the paralysis of not wanting to know about it to have an excuse. People can learn for free all the basics of finance and go one step at a time.
There is no one asking you or putting pressure on you to be an expert in finance, you do not have to know everything at once. So what can you do? Just go and do it. The more you learn, the more you benefit from it, and the doors will surely open, and more opportunities will come for you to save and make more money and get out of debt.
Truth be told, but how a person manages their money, this is how it gets all the other life experience. This will determine where she lives, what drives, what she eats and even how she dresses, whether you want to believe it or not.
I work hard, and so I deserve to have this
No one is saying that people do not work hard, or that they deserve nothing. The root of this lie is much deeper. Why do you need a reward?
There is always a lot of noncompliance whenever it comes to work, profession or career, the more interesting it is to easily justify buying something for the person to become a little happier. The real problem is that people are dissatisfied.
Instead of making excuses for every paycheck or monthly payment, it’s time to ask yourself what’s going on. Perhaps the truth is that you are working hard at something that you just do not like to do and need to change. Think about it!
It is a financial emergency
The definition of emergency is an unexpected and dangerous situation that requires immediate action. This boils down to something that is dangerous and serious as well as unexpected. Whenever someone says that he had an emergency, like paying for the car license or insurance that was late, you know that as an adult, a car has to be licensed every year. This is not an emergency.
There are real emergencies, like job loss, with a traffic accident, but most of what people consider to be emergencies, is something that could have been planned well in advance.
I’m going to get a discount
When people say that, the point is not that you will get 50% discount, but the 50% you paid for something you really did not need.
If you happen to be in debt and have no money saved, it does not really matter whether it is for sale or not at a discount. If it was not a necessity or an investment for your personal or professional development then you are just lying to yourself.
You do not have to lie to yourself. Always think that extra money like the Income Tax refund can very well be used to pay off your outstanding debts, save for the education of your children, to pay more a installment of your home, or anything else more useful.