Four Money Lies We Tell Ourselves.

Which One Are You Guilty Of?

You’re salivating over the newest fashion trend, latest electronic gear, or perfect get-a-way vacation. You know you can’t afford it. You know you shouldn’t. But you can’t help it.

You look for any reason to pull the credit card trigger, even if it means telling yourself lies to rationalize irrational financial decisions.

Perhaps you’ve even convinced yourself that:

“I deserve it”

You’ve worked hard. You’ve spent long endless days and nights in school or on the job. You’ve made sacrifices too numerous to count in order to get where you are.

Worst of all, it seems like no one appreciates all that you’ve accomplished.

Who can blame you for feeling like you “deserve” your financial indulgences, because you earned your expensive red high heeled gems, your late model automobile, and your expensive Caribbean vacation.

You only live once, right?

But, while an occasional indulgence or two is understandable, too often an “I deserve it” attitude run amok leads to financial ruin.

Remember, what you truly deserve in life is an emergency fund, a fat retirement account, and the peace of mind that comes with being debt free.

“It’s on sale”

You’ve done it. You’ve grabbed the deal of the century, snagging your prize at an amazing 70% off the retail price.

Never mind that the object of you consumer affection was probably made in China on the cheap. Who cares that you could go without it. It really doesn’t matter that your closets are already bulging with shoes, clothes, and everything else under the sun.

It was a deal. How could you refuse?

But, here’s the golden rule of retail you should really live by: No matter how good the sale, if you don’t need it, it’s not a deal at any price.

“I’ll pay it off at the end of the month”

Who hasn’t told themselves this lie at one time or another.

Sure, we have the best of intentions.

Deep down we really do intend to purchase our shiny temptation with our credit card and pay off the balance by the end of the month.

Inevitably, however, it always seems that something comes up to sabotage our best laid plans. Some other emergency or expense gets in the way and our best intentions go by the wayside.

Here’s a simple but effective piece of advice: If you can’t pay with cash don’t buy it. I know it’s easier said than done, but if you succeed in breaking the credit card addiction your finances will reach a whole new level.

“The monthly payments are only…”

Monthly payments, they’re a retailer’s best friend, and your worst enemy.

You’ve heard the pitch. Take your beloved purchase home today with no money down. Just pay in simple monthly installments.

Who can’t help but be seduced by low monthly payments? But the truth is, you’ll spend years making them. Worst yet, associated interest charges multiply like a cancer, savishing your financial well-being.

That $700 flat screen morphs into a $950 financial fiasco. The $500 sofa transforms into a $800 money mistake. All because you fell for the monthly payment trap.

Here’s the rub.

What gives our money lies so much power is that we truly want to believe them. We become complicit in rationalizing the lies into truths.

And perhaps the only way to break the seductive power of these falsehoods is to become aware of what we’re telling ourselves.

The next time you’re faced with a retail temptation, take a second to listen. Listen to what you’re telling yourself. If it is a lie, stop the lie in it’s tracks and walk away.

Your pocketbook will love you for it.

Now it’s your turn. I know you’ve got some great money lies that you’ve told yourself. Help us out. Share a few of them below in the comments section.

Comments

comments