Good Morning DINKS. Let me ask you a question “Do you ever lie to yourself?” Let’s be honest with each other, are you honest with yourself about your current financial situation, about your relationship, and about your career ambitions?
MSN Money recently published an article titled “The Worst Money Lies We Tell Ourselves” and it was definitely an eye opener for me. After reading this article I started thinking about all of the aspects in my life, not only my money but also my relationship, my career, my dreams, and my personal goals. Can I honestly say that I am truly happy in all aspects of my life? No! But do I fake it sometimes so that I can avoid having to deal with my problems? Yes absolutely! Think about your money, your career, and your relationship? Are you truly happy or are you currently faking it just a little bit?
What do you think the Number 1 money lie is that people tell themselves? Here are the Worst Money Lies that We Tell Ourselves according to MSN Money
1. “I use my credit card only to get the rewards” NOT TRUE! We use our credit cards for other reasons such as establishing and keeping a good credit score. We may also have to use our credit cards because we don’t currently have to money to buy our items. I don’t think that anyone just uses their credit cards to earn rewards; the rewards are just a bonus feature.
2. “I choose to have monthly payments” NOT TRUE! I don’t know a lot of people who choose to have debt (other than their house). We have monthly payments because we can’t afford to pay for everything in a onetime lump sum payment so we charge the purchase on our credit card. Monthly payments allow us to get the things we want now, and pay for them later.
3. “I bought it because it’s Interest Free for 12 months” NOT TRUE! It’s definitely not interest free because if we continue to carry a balance after the interest free period the interest rate can more than make up for the supposed 12 months of being interest free. This is a gimmick used by retailers to get us to shop. It can also create loyalty so we will buy other future items with the same retailer. There are conditions that usually apply for interest free promotions such as a high credit score. .
4. “I don’t make enough money to save.” NOT TRUE! If we make money then we can save money. Even saving $10 per month can add up to a large amount of savings over time. If we don’t save our money we will just spend it. If we learn to live without or live on less then we can save more.
5. “It’s on sale” It may be true that the item is on sale, but it’s not true that we need that item. Buying items on sale should be an added bonus when we need to buy essential items, we should never buy an item just because it is on sale.
6. “But it’s free” NOT TRUE! Nothing is free. This is just another scam used by retailers to get shoppers into the store and persuade them to buy more items. The item you are getting may be free, but the cost is factored into the price of other items. A classic scam is Free Item with a $50 purchase, or Buy 2 and Get 1 Free. Well if you didn’t plan on spending $50 or buying 2 other items in the first place then your promotional item is not really free…it did cost you.
7. “I only live once, and I can’t take the money with me” TRUE! However, there are costs associated with death. If we spend all of our money while we are alive then who is going to pay for our funeral, our debts, and our final taxes after we are gone?
Photo by Pink Sherbert