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7 ways your mindset is costing you money
We’ve all been there. You’re tired from a crazy long day at work, you just want to go home, eat anything and veg out until it’s time for bed.
Or maybe you’re out all day, you get hungry and don’t have any time to go back home to cook.
Or maybe you’re out on vacation and didn’t plan ahead and now you have to buy a missing item you didn’t pack.
It’s easy to get swept away by circumstance and say oh well.
It’s easy to just pay your way out of planning, but this it can really hurt your savings potential. How did we get here and how do we turn it around?
Mindset is 80% of how habits are formed in the first place. It’s important to recognize that we have full control to change how we spend our money.
Here are 7 ways your mindset inadvertently costs you money and what you can do to change the cycle.
A bite out to eat is harmless-we all have things in our day-to-day that take up most of our day. Work takes at least 11 hours from your 24, if you include getting ready and assuming your commute is less than 30 minutes each way.
And work isn’t the only time consumer, we have errands to run, some of us have family things, workout routines, and so many other things in our lives that take up our time and our energy.
Spending a buck is not a big deal
This is something I still struggle with. In the short term, a buck is nothing. It’s not even a couple of minutes of my earned time.
But in the long run, if I spend a buck a day, I’d have wasted $365 each year.
And let’s be honest, who spends just a buck? We say that, but we end up spending $2-$5, and you can see how that could add up quickly using the math above.
Success is having high end items
So many of us have this notion that in order for us to prove to ourselves and to others that we’ve made it, is. Y being able to buy high end items.
Even if they were bought on credit, somehow just having the item makes us feel accomplished.
But does it really?
This notion was created and sold by marketers and large companies wanting us to willingly give them our money. And we all bought it at some point in our lives. Maybe we’re still buying it.
Well it is time we return that notion and think of our success as more than just items that brings our debt limits higher and higher. How much do we waste per year on this successful image we’ve built up for ourselves?
Credit card debt is a normal part of adulthood
Many adults start adulting by going into debt and paying for it the rest of their lives. And we see this as very normal, which is quite alarming.
Would you borrow from your friend or relative repeatedly and continue to pay small amounts for a lifetime?
I would hope not!
If you look at credit card charges as borrowing money from an actual person, except that this person happens to take advantage of your need by charging you crazy interest rates that add up to more than you bargained for.
Credit cards should be used wisely. By this, I mean, use a credit card if you plan on paying the full balance at the end of the month, no exceptions. If you can’t afford the item by paying in cash, you should definitely not purchase that item on a credit card.
Buying expensive items automatically means it’s better quality
How many times have we purchased an item that was more expensive, only to realize that the cheaper version did the exact same thing?
I just wrote a post about how buying a Dollar Tree nail polish changed the way I look at purchases completely.
I used buy really expensive makeup products in my early 20’s. Lancome was my absolute favorite brand, that is, until I found out that it’s the same company as L’Oreal and that their products have almost all of the same ingredients!
I was so mad when I realized how much money I wasted on a product I could have purchased for a fraction of the cost at the drugstore.
Just because something is more expensive does not mean that it will work wonders or do better than their cheaper competition. Do your research on the product you want and look at reviews and versatility of the item instead of how much it costs.
Good quality can still be purchased at a decent price.
You should save after paying bills
At one point or another, bills can get out of hand. And we think that paying our bills first is the responsible thing to do. But, it doesn’t make you less responsible to pay yourself first before making your debt payments. It just shows your wise with your money.
If you put money in your savings every single month consistently, then you won’t frivolously spend it. Raise your hand if you saw a couple hundred dollars left in your checking account and ended up spending it on things you can’t remember.
It’s okay buddy, my hand is raised too. That’s why this rule of thumb is so important. Your future self will be so grateful that you did this now.
You can’t ask for a raise in your salary
If you been in your position for more than 2 years, you should be drafting a strategy to get a raise from your boss. Have you been doing your work well? Taking on extra projects?
Working long hours at times? If you answered “yes” to any of those questions, then you have a valid reason to ask for a raise.
Also, the worst that can happen is they say no. But, often times we’re so afraid of asking the question, that we truly leave so much money on the table.
Ask. If they say no, ask for the reasoning behind the answer. I talk all about the details on how to ask for a raise like it’s your job here.