Recently, I was going through my condo to plan for the next round of updates and renovations. On my current list, I wrote about changing the flooring in the 2 bathrooms, changing the kitchen counter top, sink and light fixture, a few minor paint touch-ups and yard work.
I am not in any hurry to complete all these projects. I will spread them, as it is easier for my finances and it ensures all the work will actually be paid for.
I started thinking of all the work I have already done in my condo, and how it is all paid for. Yes, you read correctly. Paid for. With my own money. Not on credit.
Paying for items with my own money brings me a huge satisfaction. I feel more relaxed and enjoy these items much more, such as my vacation in Hong-Kong, also fully paid for.
But, I also see the progress I have made. My Old Self would have just charged everything to credit cards without blinking or thinking about how it would be paid off.
Being in denial and keeping up with the Joneses are the 2 biggest financial mistakes one can make.
There are also 2 major lies people tell themselves about money:
– I will get my finances in order as soon as I [insert whatever excuse here]: perpetual postponement is another form of denial. Being in denial can keep you in debt for a very, very long time. In my case, my denial lasted for 5 years. I am still repaying my debt to this day….
– I work hard, I deserve it: Feeling entitled will make you spend way more than you can actually afford to. If you are spending to feel better, the feeling will be short-lived.
Debt has sadly become the norm nowadays. Even the proverbial budget pie chart allocates 15% of your income towards debt repayment. People spend more time in debt than out of it, including in retirement years.
It doesn’t have to be this way! In order to break the cycle, you first have to be honest with yourself.
What are the financial lies you are telling yourself? Or used to?