Great Savings 58 – Stop Lying To Yourself

 

gst58-numberWhat’s the biggest impediment to improving your lifestyle or better still getting rich? Maybe it has nothing to do with having enough money. Maybe it’s more simple. Maybe it’s more in how you fail to make money a priority. In essence, how you lie to yourself about an ongoing financial situation. Don’t believe it? Then consider these questions:

 

1)   Do you know how much money you have in the bank right now?

2)   Are you tracking which bills are coming due?

3)   Do you know how much you have saved for retirement?

JB and Lillybean talk about their finances.

Do you make any assumptions about who’s in charge of finances in your household?

4)   Do you have a monthly budget?

5)   Do you set financial goals for yourself?

6)   Do you have a lot of debt?

7)   Do you know the basics about stocks and bonds?

8)   Are you counting on your next raise to relieve you of an ongoing financial problem?

9)   In the back of your mind, are you counting on a big payoff from a bet, the lottery, an inheritance, or a high-risk investment to solve your problems once and for all?

 

How did it go? Questions like these can be very telling. They show us how realistic it may be for us to get ahead. If you answered “No” to questions 1 through 7 or “Yes” to either 8 or 9, then it’s time for a reality check. Ask yourself if you are really being honest with yourself about the state of your finances or if you’re relying on wishful thinking to solve your problems.

 

gst58-doesn't-grow-on-trees

Are you waiting for a magic bullet to solve your financial problems?

It’s hard to get ahead. For most of us it takes a consistent ongoing effort and conscious thought. True, some people get lucky, but one thing you can count on is it’s extremely rare to get ahead by accident. Money doesn’t just magically appear. It doesn’t grow on trees. And choices do have consequences. What may be easy to grasp on the surface (and much harder to get in real life), is that not making a choice to responsibly handle your money or finances is in fact making a choice to do nothing. Thus, if you choose not to learn the basics, or chose not to track your money (meaning your income, expenses and assets), there is no way to know if you are getting ahead or falling behind. Unfortunately, most of us fall behind when we choose to let things slide.

 

I Need A Lotto Ticket

 

Hoping to win the lotto? Yeah, we’d all like to win it, but how realistic is it even if you consistently play every chance you get? What no one really wants to hear is their chance to win big in the lottery is so close to zero, it’s zero. Don’t believe it? Examine odds like 1 in 7 million. To do that divide 1 by 7 million and you get: 0.00000014. That’s a minuscule difference from zero—so small you might get zapped by lighting several times before ever winning the lottery. For more on chance and how to improve your odds winning the lottery read our post Lottery 101: Winning The Biggest Prize of All.

 

I’m Waiting For A Big Payout

 

Chicka goes online to gamble.

Dee knows how to take care of herself. She watches her money and doesn’t let Chicka have more than they can afford to lose.

Maybe you think winning big is the answer. Did you make a high-risk investment to get out of a jam? Did you place a big bet to recoup losses? Are you counting on Grandma to pass quietly away in her sleep and set you up for life? While the odds of these kinds of potential payouts may be much higher than winning the lottery, they still aren’t guaranteed. High risk means high potential for reward and it means high potential for a complete loss that might wipe out some or even all your assets. Grandma may love you dearly, but decide to give all her money to your sister, her brother, or her favorite charity. The casino is happy to take that bet of yours because they use odds to their favor. They know to let you win just enough to get you hooked and then take you for big loss or maybe lots of little, but ongoing losses. Sure you might win a decent payout or two along the way, but unless you can walk away and never turn back the chances are that gambling’s only sure bet is how it will lead you down the path toward financial ruin.

 

Action Item: Are you really being honest with yourself about the state of your finances? Have you consciously or unconsciously chosen to ignore potential consequences for not doing anything or not doing enough. If you’re not sure, take the test above and see how it turns out. If you conclude you have work to do, then don’t hesitate to dive right in. The sooner you get a handle on your finances and start looking at things realistically, the sooner you’ll begin the journey towards a brighter future.

 

For more ideas to build wealth, save money and pursue happiness check out our complete list of Great Savings tips by clicking here.

 

 

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