Five Harmful Money Mindsets that Keeps Giving You Financial Management Problems

by Redeeming Riches on July 14, 2014

personal-finance-software-300x206Having the right mindset about money and finances is very important for a sound personal financial management. Negative and harmful psychology about the way you handle your money can keep you in financial woes. For successful money management, you need to get rid of these harmful thoughts.

Some harmful money mindsets have already been embedded into people’s system longer than they could remember. It’s time for a self-check and look for these negative money mindsets before they cause you more problems:

1. Good Financial Management is Not My Thing
One reason why people fail in handling their money properly and effectively is that they settle on the fact they are not good money handlers and just live with it. In today’s information age, learning is easier. So let go of the thought that you are not a good money manager and start learning about it, instead.

2. My Paycheck is So Small, I Can’t Save Anything from It
When the rent, bills, groceries and debts have been paid, many people realizes there’s just not much to save. And so they continue to live from paycheck to paycheck and that saving is a luxury only those with fatter paychecks can afford. You need to stop this kind of thinking and start strategizing to save instead. No matter how small it can be, a savings is a savings. It’s a good start!

3. It’s Normal to Have Credit Card Debts
Credit card debts account for one of the biggest personal financial management problem in the US and around the world. The temptation to swipe is just hard to resist that many are already in very deep debt, and some people just take this is a natural part of life. Well, it’s not! You need to stop thinking credit card debts are natural and start clearing them off through smart planning.

4. Frugality is a Form of Self- Denial
Many people view frugality as a means of denying yourself some pleasures as a way to save money. This might be true a certain degree but there is more to it than self- denial. Frugality can be viewed as a strategy for delayed gratification rather than denying yourself of things. This way, you will become more motivated into cutting back from your expenses and save for future needs and plans.

5. Money Talk is Not Romantic
For some people, it’s just might be the case. Who would want to talk about budgeting and managing digits when you can cuddle the whole night long? Well, by not discussing financial management with your partner you might just be setting your relationship into an impending doom. Don’t let money get in the way of your relationship by talking about it with your partner head on.

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