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Have you ever said, or heard anyone say these popular phrases about money?
Chances are we've all been guilty of having these thoughts at some point in our lives - and with a new year in tow, what better time to remove these damaging excuses from our vocabulary?
Drop your broke mindset for good and keep reading to find out the 4 most common things broke people say - and why they're harming your journey from bad money habits to financial success.
1)“I’ll put it on the credit card”
Reality: If you couldn’t afford it without a credit card - you can’t afford it!
When used responsibly, a credit card can be an asset to boost our credit score and provides a little more spending opportunity before payday comes around.
However, if you’re the type to become too reliant on using your credit card to make purchases on things you wouldn’t ordinarily be able to afford and you aren’t paying off the balance in full every month - it quickly becomes a problem!
Although it can be extremely tempting to tell yourself you’ll just “put it on the credit card”, you’ll quickly find yourself spending more than you have. A safer, less costly alternative could be a digital prepaid card like ImageNPay - as you can only spend what’s on the card, there’s no risk of surprise fees and expensive interest rates.
Bonus tip: Do yourself a favour and remove your credit card if it’s linked to Apple Pay - sync your ImageNPay virtual card instead!
2) “I’ll start saving when I earn more”
Reality: You don’t have to earn lots of money to start saving money
A myth as old as time, many people assume that there’s no point saving their money if they aren’t making much of it. According to a study by the Money Advice Service, there are more than 16 million people in the UK who have less than £100 in their savings.
This, of course, turns into a vicious cycle of people relying on credit cards and getting themselves into debt due to having no emergency fund or savings for a rainy day.
However, did you know that even starting with just 1p could get you up to £700 within one year?!
There are plenty of easy and do-able money-saving challenges you can try to get started - and to make things even easier for yourself, why not start automating your savings so that you barely notice the extra bit of change leaving your account?
3) “Budgets never work for me”
Reality: You haven’t found a budget that works for you - yet.
If you’ve tried budgeting and had a problem sticking to it, you may need to re-think your budget completely.
For example: is it too restrictive? Are you planning for any irregular expenses? Are you categorising your spending and deciding which are a priority?
Often, the number one reason your budget is failing is that it’s unrealistic.
As @YimsMoneyTips puts it: “Remember, every season is different. Make sure that your budget reflects this.”
Find a budgeting method that works for you and identify your spending triggers so that you know what you need to look out for.
If you’re new to budgeting, getting started with one might feel scary. Check out our blog on how to start your first budget for all you need to know.
4) “We’re only young once”
Reality: But you could be broke forever!
We’ve all dealt with a case of ‘YOLO’ at some point in our lives - particularly when it comes to our finances.
Whilst it’s true that we’re only young once, reckless spending in our youth can negatively impact our future.
Get rid of this unhealthy money mindset by allocating yourself a ‘fun fund’ in your budget.
Once you’ve made payments towards your debts, paid yourself first (i.e. put money towards your savings or retirement fund), and all the bills are taken care of, use whatever money you have left as your fun-spending money to do with as you please.
This means you’ll still be able to enjoy yourself - and your youth - with a less restrictive budget, whilst taking care of future you and avoiding a whole lot of debt and regret. A win-win!
It’s never too late to turn your financial situation around and improve your money mindset for the better.
The ImageNPay virtual prepaid card app could help you on your journey to financial wellness and make budgeting a simple, fun process!
Click the button below to find out more and get started.
Post inspired by @nataliescottempowers