To Top

Three Biggest Mental Money Traps You Need To Avoid Right Now

Most of us live our lives thinking just on the lines of the poor and the middle class. Surprisingly, you are never able to get rid of that mentality and somehow get stuck to it forever. If you had parents with high ambitions, good intentions, but did not have monetary freedom, the mental money raps might still plague you. There is no denial of the fact that the wealthy and the affluent have their thought process when they are dealing with their wealth, finances, and investments. What are these mental money traps that you can avoid? Find out.

All or Nothing

The all or nothing thinking is usually like – either you become the best in what you are doing, or you simply give up. According to experts, this thought process is pretty common in cases when someone creates a particular spending plan and wants to stick to it. It’s surprising how people can get absolute perfectionists regarding this. How do you break away from the shackles of such a though process? In case you have set a financial goal for yourself, it doesn’t matter if you fall short by a whisker.

There is nothing to worry about. The fact that you have got close to it should encourage you. It’s always important to try than doing nothing. If you want to shell out $100 on clothes every month, but somehow have crossed the $200 mark, don’t quit and stop budgeting. Try next time. Target the rest of the areas where you can try cutting down your expenses. That’s a smart way to have control over your expenses.

Unexamined and Unplanned Expenses

If you wish to control your expenses and have planned to stick to a budget, you have probably examined the areas where you have overspent last time, right? But have you gone through your expenses? Some people splurge on things that are insignificant in their day-to-day life. They have a habit of spending money on unnecessary stuff and then get struck by financial woes. That’s unplanned spending. If you are overlooking some important items and planning to purchase an expensive bottle of wine, then you are on the wrong path. You can save that money and utilize it on something that you would need in the coming days.

You have to scrutinize where and how you are shelling out your hard-earned money. Try to divide the entire cash into different envelopes. Each envelope will be for a particular expense like groceries, house rent, gas, entertainment, so on and so forth. Cut your cable connection and check whether you are feeling miserable. Opt for a cheap phone instead of a pricey smartphone and see if you are okay with it. This is how you experiment to find out what are the expenses you can do away with.

Avoiding Money

If you have the habit of pushing unopened bills into your drawer, never care to examine your bank statements, or haven’t thought of asking for a salary hike, then you need to change this now. You might not realize it, but you are avoiding money. Try to ask yourself what makes you so reluctant. Do you think that money is bad for you or wealthy people are shallow and greedy, etc.?

If that be so, then you are taking part in sabotage against yourself. In simple words, you are running your prospects with your own hands. What makes you think that you don’t deserve the money? Is a feeling of low-esteem working inside? It’s highly ironic that people who have such a thought process would often tell you that they don’t have enough money to fulfill their desires in life. It’s somewhat like pushing your luck away from yourself.

If you want to take yourself out of these mental traps, you genuinely need to change your thinking. You can also seek help from professionals who will guide you on the right track. Besides that, you should have a flexible thought process is critical if you want to have sufficient money at your disposal. While it might seem difficult initially, you will slowly get the hang of it. Managing your money isn’t that tough if you do it right, and avoid the pitfalls carefully!

More in Financial Advice

You must be logged in to post a comment Login