Are these money myths keeping you broke?

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By nature, humans are habitual creatures. What we think and believe about ourselves and others influences our actions and inactions. Our perspective reflects who we are rather than what we see.

Our financial situations are quite similar here. When we struggle with saving or sticking to a budget, it’s not because we can’t see the big picture or we aren’t committed to our financial goals as we should be, rather it’s because of our value systems- the ideas, beliefs, mindsets and thoughts that indirectly influence our financial actions for good and bad.

The truth is that the root dictates the fruits. You cannot assume that money is evil or that only certain people are destined to have it and expect to have financial success.

Personal finance success depends on the right money mindset.

In this article, I’ll uncover the common myths that prevent us from developing healthy financial attitudes. As previously stated, kicking these lies to the curb can make a big difference in your finances.

  1. I deserve it: You work really hard to earn your money and there’s absolutely no crime in pampering yourself with some great treats once in a while. But when the “I work really hard, so I deserve it” conversation becomes a constant k, then there’s a problem! It’s the little cents over time that break the budget.

A tip to overcoming this trap is to set aside some amount on your budget to deal with splurges so you don’t dip into other parts of your income that should be allocated to savings and investing. Assigning every naira in your account a task makes it difficult to go on an “I deserve it spree”.

2. I’m a woman. I’m not good with money: Sighs…I don’t blame you at all for this. For so long women were made to believe that they were impulsive spenders who couldn’t manage money or use it for something tangible other than shopping. Ideas that we couldn’t invest or understand financial jargon limited and still sadly limits many women from participating in financial opportunities.

But you don’t have to believe the lies neither do you have to be a financial guru to make sound financial decisions. There are a plethora of personal finance platforms to gain financial literacy skills. It’s the little steps that build into the difference.

3. I don’t earn enough to save: I know things are quite difficult with many trying to break even, but you cannot afford not to save. The road of life is peppered with uncertainties like a sudden job loss, a lockdown, an illness, car issues and having some funds stashed aside in preparation for a rainy day can make all the difference in pulling through or going down.

4. I’ll start saving when I…: When you what? Get the new job, get married, settle down, clear your debt, move into your home? Really the list of things we’d love to do is endless and waiting for the perfect time to achieve things before taking action can be dangerous.

Time is of the essence in your financial journey and procrastinating steal the benefits of time. Get started now. Get started today.

5. It was an emergency: Let’s get things clear. A shoe on sales is not an emergency neither is an unplanned girl’s trip. An emergency is a serious, unexpected often serious situation requiring urgency.

If we are honest that new eyeshadow palette on IG does not qualify as an emergency. More so, if you’d want to jump on a girlcation, then save towards it. Don’t dip into your emergency savings to satisfy some cravings. It doesn’t work that way.

6. A budget is overrated: Please a budget is not overrated. Really? Given the tremendous noise we are bombarded with every day, do you think that you can track all of your expenses in your head? You already know the answer, so let your budget do the work.

A budget is simply creating a vision for your money and acting on it. It’s the process of assigning tasks to your money, so we don’t fall into traps like money comes and money goes. A budget tells your money to go into the right places so you can spend mindfully. Want to learn the simple process of creating a budget? Then read here.

7. I don’t know anything about money: We were not taught in any formal framework how to manage money. In fact, we spend more time talking about how to make money and less on how to grow our money. But even at that, you don’t need an MBA to know that spending less and saving more, protects you against rainy days.

This timeless wisdom has been passed down by our ancestors who didn’t have the overload of information we are privileged with today. Notwithstanding, it’s what you do now that matters. Leverage the wealth of financial literacy resources on search engines like Google. Platforms like HerVest provide women with resources to manage their finances that sets them up for success. Kick out the excuses.

8. The future would take care of itself: We are often optimistic about the future which is a good thing. The only issue here is that being too optimistic and not realistic can hold us from taking important steps.

For instance, when you believe that your future financial responsibilities will be automatically heaped on a husband or boyfriend you haven’t met. This is like playing dice with your future. What if the man never shows up?

As a woman, you’re more than enough to be the chief financial officer of your life. If you’re blessed to meet a man who sweeps you off your feet with material things- good for you! But have your own thing. Be complete in yourself. You also have what it takes to create wealth.

I hope these pointers have struck a chord and stirred you in the right waters as they were designed to. So what money lies have been keeping you in a financial black hole? Uncover them and you’ll be on your path to financial freedom.

Dara from HerVest.

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HerVest

HerVest

An inclusive Fintech for underserved and excluded women in Africa. We're bridging the Gender economic gap from the farmlands to the boardrooms.