I’m a take-responsibility-for-your-actions kind of guy, which is why I don’t have a problem telling you that most of your financial problems are self-inflicted. Yes, we all get the short end of the stick sometimes, and extenuating circumstances compromise our bank accounts now and then.
But by and large, if you’re constantly lamenting you never have enough money or can’t get ahead, well — you’re probably sabotaging your own financial progress in one of these ways.1. Lifestyle inflation
Mo’ money, mo’ problems. It’s not just a song from Biggie, it’s also an accurate reflection on how increased income doesn’t necessarily improve your financial situation. If you’re not careful, often as your wallet grows, so does how much you spend.
“When you receive a raise, it’s challenging not to make upgrades to your belongings since you can afford to do so,” says Coupon Sherpa saving expert Kendal Perez. “However, lifestyle inflation sabotages your financial goals in that you won’t actually be richer; instead, your toys and debts will be more expensive, and you’ll stay at the same level or be even worse off than you were before the increase.” (See also: How One Nice Thing Can Ruin Your Whole Budget)
2. Refusal to sacrifice
As much as you want it all, sometimes that’s just not possible — especially if the effort is making you broke. In that case, you need to step back, figure out what’s most important to you, and sacrifice what you can live without. For example, if you’re holding on to that fancy, expensive car despite barely making the payments, while other bills are also suffering, it’s time to re-evaluate. That vehicle may be fun to drive, but it’s probably not so awesome to live in.
3. Avoiding your financial fears
Managing your money can be intimidating. Unfortunately, brushing your money issues to the side won’t make them go away. In fact, it will only exacerbate the problem, which will return with a vengeance if you disregard them for too long.
“We make excuse after excuse to avoid our fears, including not tackling our finances because numbers can seem scary,” says Natasha Rachel Smith, personal finance expert at TopCashback. “Pluck up the courage to make time for and respect money; it will then respect you back and you’ll be in control of it rather than it being in control of you.”
It’s not just managing your finances on a basic level, though. Your fear of money is probably preventing you from making smart investments that can improve your overall financial outlook.
“Fear of investing, or fear of new-tech options like high-yield online bank accounts, reduces the potential for financial growth,” she says. “Knowledge is power, so educating yourself on those financial topics that scare you is the first and most important step toward overcoming that fear.”
4. Relying on future success
I’ve heard it plenty of times before, and I’ve even said it myself: “I don’t need to worry about my finances right now….
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