5 Things You Should Never Say About Money

Like many other areas of life, your mindset and attitude can make the difference between financial success and a life of living paycheck to paycheck. You don’t have to be a genius to become wealthy; most people who are financially secure are normal, everyday people who set goals and believe that they can achieve them. They also have the persistence and patience to stick with their program regardless of little, or even major, set backs. If you make a few attitude adjustments, you can change your financial future.

You may be thinking that no one can do anything to build wealth with the economy in its current state. While it may be a little easier to save during more prosperous times, statistics are showing that more people are cutting back on expenses and building their savings now than during the previous boom. Many well-known companies like Federal Express and Microsoft were formed during poor economic times as well. These companies were formed by people who kept an eye out for new opportunities and persevered through hard times. In short, they had great attitudes. The only thing that prevents you from changing to a financially successful mindset is you.

1. I’ll Do It Later

Procrastination can be your worst financial enemy. You might think that you’ll start saving once you make more money, or you’ll start saving after you make that next big purchase. Maybe you think you’ll start next week or next year or after your next raise. With this mindset, the reality is that you will never start saving. Once you find one reason to put this important task off, you’ll continue to find more excuses. Before you know it, years will have passed, and you will have no savings. In the meantime, you will have lost the advantage of time, and each passing year will make it harder to catch up to where you could have been. If you can change your current mindset and save even one dollar today, you will be better off than if you chose to put it off again

2. I Don’t Have Enough to Invest

Many people feel like there’s no point in even trying to build a nest egg or investment portfolio if they don’t have a large amount of money to spare. This couldn’t be further from reality. Any amount that you can save will add up as interest begins to compound. For example, if you could invest that one dollar each day for five years and earn just 2% compounded monthly, you’ll have $1924 in savings. Your one dollar a day will have earned about $100 in interest. While this might not sound like much, it’s dramatically better than an empty savings account. Change your attitude so that you’re in savings mode. If it’s only a few pennies a day, they will add up over time.

3. It’s Too Complicated

When you look at the financial world as a whole, it is an overwhelming and complicated arena for the uninitiated. Some people dig in and learn the ropes, while other people decide it’s too much to think about. If you fall into the latter category, you may be experiencing a mental block on money matters.

One approach to make it less intimidating is to choose a very small area that you’re interested in as a starting point. For example, begin by researching electronic stocks if that’s an area that interests you. You can begin reading expert reports detailing stock trends in the technology industry and checking the ups and downs each day until you’re comfortable. The next step will be to purchase a few shares in your favorite company and watch your investment for changes.

Another approach is to seek out expert advice or invest in a managed fund. You may think that your small initial investment isn’t enough to make it worth finding a financial adviser, but there are programs for everyone. A professional adviser will be able to suggest ways to improve your finances and could be the quickest way to financial stability.

4. I Deserve This

If you’re not careful, you can easily waste hundreds of dollars a month. Just like saving a single dollar each day can add up, buying a five-dollar coffee or a ten-dollar lunch each day will add up as well. To get a feel for where your money is actually going, keep a record of every penny that you spend for a month. If you take the time to categorize each expense, you’ll be amazed at the number of areas that you could completely eliminate without feeling deprived. This is money that you could save or invest.

Overbuying is a little different that overspending. Some people can’t bring themselves to pass up a good bargain. It’s important to remember that buying something you don’t need is never a way to save money. This is especially true of large ticket items like homes and cars. If you find a 3,000 square foot home at a steal, but it still costs twice as much as the smaller house that better suits your needs, you should buy the smaller house and save the extra money.

5. It’s Too Late For Me

It’s never too late to start saving. While you can take better advantage of compounding interest when you start at a young age, you can still build wealth at any age. To illustrate this, there are quite a few successful people that made a mistake or two and lost everything, but quickly rebuilt their finances. Instead of feeling like they were a failure, they held onto their great attitudes and determination to start over again. Within a few years of a failure, motivated people can be back on top again. Change your mindset to one of confidence. Don’t let age or anything else keep you from your goals.