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Are excuses keeping you from financial success?

Do you ever find yourself justifying your spending?  Using reasons like: it’s on sale, or I deserve to treat myself to a lavish vacation or I don’t make enough money to save.  Excuses like this could really be derailing your financial success, maybe it’s time for a financial intervention.
Why do we make excuses when it comes to financial matters?
It is because most people don’t want to face the truth about their financial situation. Having a seemingly logical reason to explain away a problem is a self-defense mechanism.  It allows people to avoid dealing with the true issues because they have justification.
How can this become such a big problem financially?
Using excuses to delay dealing with financial problems only leads to the problems becoming much bigger and even more difficult to rectify.  A great example is that if you start spending more than you earn, fairly quickly you will have built a mountain of debt.  The only way to solve this will be to spend way less than you earn so that you can begin to pay down your debt.
What do you say to the person who says they can’t afford to save right now?
That is something that many people use to delay saving and the best way to overcome this excuse is to have them do a lifestyle inventory.  What things in their life do they spend money on that they could really do without?  For many people, they can find $50 per month or even more if they really wanted to start a savings habit.
Many people use the excuse that saving for retirement is just too complicated…
It really doesn’t have to be complicated to save for retirement, start with company sponsored plans like a 401k.  It is one of the easiest ways to save for retirement.  Plus, saving for retirement is based on relative simple strategies – start saving early and save consistently.
What about the person who says they are too busy to think about money?
If a person has time to plan a vacation, watches 2 hours of TV per week, or spends 2 hours per day on social media, they have time to make a fabulous financial plan.  Just one hour per week making financial plans can drastically improve the overall financial situation for most people.  Start the week or end the week with a dedicated time that is focused only on money matters.
What is one area that most people make excuses that can have drastic consequences?
By far it is when it comes to spending.  Whether it is buying something that you didn’t really need just because it was on sale or treating ourselves to a lavish vacation that we really can’t afford just because we have had a tough few months, we are all great at justifying spending money on ourselves.
Why is this so troublesome?
For most of us, unplanned expenditures end up being financed with credit cards, which delays saving activities, which in turn leads to the next expenditure being financed with credit. It becomes a cycle of spending, paying down debt and spending again using credit.  It becomes very difficult to get out of this pattern of living.  Planning for all of your expenditures is the best method for stopping this vicious cycle.

Posted: 10/29/2015 with 0 comments

Categories: Money Matters, Planning, Spending

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