Why Am I Not Good With Money?
Why Am I Not Good With Money?
I believe it is very important to establish good money habits if you want to live your best meaningful and most impactful life that you came on this earth to live.
I have discovered, after talking to a lot of my female clients, the chances are very high that if you are a woman you believe that you are not good with money because it is too complicated, and as a result, always ask yourself disempowering questions like why am I not good with money?
If you believe you are not good with money then you can never be good with money. You will feel hopeless and not empowered to do anything to change it and therefore you will avoid taking any responsibility to improve your financial know how which will then lead to a self-fulfilling prophecy and a life of financial struggle and scarcity mindset.
Your self-identity, perspective, and beliefs that you are not good with money will lead to thoughts, feelings, words, behavior, actions, habits, and eventual destiny of financial struggle and scarcity.
So, you may be wondering, what are some bad money habits you need to change that could keep you from living an abundant wealthy life. Let’s discuss that next.
What Are Bad Money Habits?
If you have any of the bad habits that you are about to learn about make sure you change them in order to do better financially and live your best life, teach your children to do the same and change the financial trajectory of multiple generations to come in your family.
The more money you can make, keep and multiply the more unlimited good you can do with it in this world. Your money is not limited like your time when it comes to serving others and making a difference.
The more you know how to manage your money and show the universe that you can it will keep giving you a lot more to manage. You live in an abundant world which you have to learn to tune in to. Here are 12 habits for every woman to change so that your future generation can do better.
Deferring Money Management
Not believing in your ability and deferring your money management to someone else like an advisor, or spouse, because you are not confident and do not believe in your ability to manage your money.
Know you are capable and qualified like everyone else to manage your money well even though you may have been led to believe otherwise by the society.
Make sure you know what’s happening with your money because you never know what life has in store for you and you must have the financial knowledge and know how to manage your money well.
If you master money management then you can also teach your children how to manage their money. Make sure you know how to pay your bills and manage your money even if your partner is currently handling this task. Always remember no one else will care about your money as much as you will.
Not Making Financial Education A Priority
Not making financial education a priority is a mistake that will cost you. You need to be able to use money which is a tool that will help you sustain your desired lifestyle and mission.
Take 100% responsibility for your financial literacy, learn to earn more, manage, invest, and grow your money so that you can do a lot of good with it. Be an inspiring role model for your children.
Paying Yourself Last
It is a mistake to pay all your bills first and pay yourself last. Automate the amount that you have decided to pay yourself first every month and have it moved to a different account.
The percentage that you start saving is not as important initially as forming a consistent habit of paying yourself first, saving and investing your money.
Not Having A Peace Of Mind Account
Not having any money set aside in a separate account in case of any emergencies that may arise. Set aside at least 12 months of your monthly required expenses in case any unexpected financial challenges arise.
Make sure your money is liquid and not tied to any investments and it can be accessed right away when needed.
Unplanned Spending
Spending more than you earn and doing spontaneous spending also known as retail therapy frequently is not a very good idea. It is okay to enjoy some of your money and have fun in life as long as it’s planned spending and it is done after you have saved and invested whatever you needed to for the month.
Do not spend money so that you can take advantage of the savings. Don’t buy things that are not necessary. Always remember all your consumer goods will continue to depreciate year after year.
Overusing Credit Cards
The habit of overusing your credit cards with high-interest rates to obtain rewards that are offered. It is never a good idea to have an unpaid balance carried over to the next month. Make sure you’re using the credit available to you wisely and paying your balance off by the due date every month.
Not Tracking Your Money
Not knowing all your numbers like income and expenses can be a big mistake. Organize your finances and get into a habit of tracking your net-worth quarterly and have a system to look at all your financial numbers more frequently like weekly and monthly. Make sure your net worth (income minus expenses) is always going up and not in the negative.
Not Having A Spending Plan
Not having a budget or any spending plan can be detrimental to your financial future. Have a spending plan and allocate a percentage of your money to go to different categories like all your necessary monthly expenses, investment and financial freedom, short-term savings based on goals and future purposes, fun, education, and giving.
Budgets and planned spending are never restrictive. They give you the freedom to know exactly what is available and okay to splurge and spend at any given moment.
Paying Too Much Taxes
Paying too much in taxes is never good for your bottom dollar. Make sure you know what credits are available to you, how much you can write off, and how much you can save in taxes. Whenever you get a refund remember it means you let the government borrow that money from you interest-free.
Not Investing And Multiplying Your Money
Not knowing how to invest, grow and multiply your money could be detrimental to your financial future. Make sure your money is always working harder for you than you work for it. If you keep working harder for it and never invest it then you will always be working for it for the rest of your life.
Your investments can eventually give you financial freedom. When you have enough money coming in from your investment to cover all your monthly bills then you are free and never have to work again.
Having Consumer Debt
You have consumer debt with a high-interest rate. Make sure you buy consumers goods that you can pay for in cash or have the money to pay for when you get your bills. Come up with a plan and save for all your bigger purchase items like a vacation and a car.
Not Protecting Your Money
Not having enough insurance and the will to protect your money can be a very costly mistake. Make sure that you buy the appropriate life insurance policies so that your family does not have to suffer if something happens to you.
Hire a lawyer to help you complete a will so your estate can be transferred to your kids without any tax implications and delays.
In conclusion, you now know If you believe you are not good with money then you can never be good with money.
Your self-identity, perspective, and beliefs that you are not good with money will lead to thoughts, words, behavior, actions, habits, and eventual destiny of financial struggle and scarcity that is aligned to it.
Some of the bad money habits that can keep you from being wealthy are deferring your money management, not making financial education a priority, paying yourself last, not having a spending plan, not having a spending plan, paying too much tax, not knowing how to invest and multiply money, having consumer debt and not protecting your money.
If you have any of the bad habits that we discussed I hope you will immediately start changing them. Teach your kids to have good money habits and change your financial future and the multi generations to come.
Let’s do unlimited good for the world with all of our money!
Next, read why is money important in life for further helpful tips and insights.