Irrational Financial Beliefs That Most People Have

Sometimes, we get too overwhelmed with things that happen in our lives, which may cause us to lose our sense of understanding on what truly matters to us. We get caught in the rat-race in this world, until we realize that our beliefs and philosophies in life become shaken and unsteady. Concepts that we used to believe in before no longer matters to us, and we feel as though we are no longer how we used to be.

There are instances when we tend to accept ideas that are rather irrational and illogical. We tend to act based on our emotions or lack of understanding on certain things. We forget our values, and at times, these cause us to accept ideas, lifestyles, and habits that do not do us any good. Moreover, these irrational ideas affect how we spend our money, time, and energy. In the end, we live in regret after experiencing difficulties because of the choices we make.

By depicting what these irrational beliefs are, we can set ourselves straight and begin making sense of our lives towards financial freedom.

1. We can earn love, attention, and acceptance if we have more money

In this world, a lot of people are living in sadness and loneliness. They come home each day feeling deprived of love and attention. So, they turn on to social media, posting selfies, or drowning in negative emotions because they feel that nobody cares for them. They read about celebrities and the elites who are getting so much attention and fame, and they assume that the same could happen to them if only they had a lot of money.

Thus, they develop this mentality of growing their wealth even more to attain power, fame, and attention from people. To them, they are never truly loved unless they are rich and influential. Also, the concept of love for them becomes twisted, so they think what they have in life is never enough. The focus becomes work and making more and more money. This results to reduced time for family and friends, and they are more preoccupied with spending more of their waking hours at the office or their business with the hope of becoming the richest person on the planet.

But you see, the farther you move away from your loved ones, the emptier you may feel. In the end, basking in the pleasure of seeing your bank account will not give you self-worth or love. These are only “stuff” that will love love you back. On the other hand, enriching your relationships with people can make you feel richer because they appeal to your heart and mind. Through thick and thin, they will stand by you – even if you end up losing your wealth.

2. There is no such thing as having enough money and wealth

It is true that we are living in a material world. You need money to eat, have a roof over your head, drive a car, and buy clothes to wear. There is no reason to shun money and go homeless because it is only practical that you have some savings and extra funds you can use for your present expenses and your retirement.

Unfortunately, some people go to extremes and think that the money they have will never be enough. They worry so much about their future, their children’s college tuition (even if they are still toddlers at the moment), and so many other things that all correlate with money. These anxieties about their finances lead to further problems as they can no longer relax and live their life one day at a time.

You see, these are purely irrational thoughts. At the end of the day, what truly matters is that you live simply and harmoniously with others. Focus on the needs and do not prioritize the wants. Your goal is to make sure that you have food, shelter, clothing, which are just basic for survival. Then, once these aspects in your life are covered, you may allocate a percentage of your income for your interests and wants. Your lifestyle should be geared according to the amount of money you make instead of going beyond your finances and living a stressful life.

3. If you are unhappy, then you need more money

The best things in life are free – you have to believe it. Love, freedom, peace of mind… These all give us a feeling of joy in our heart, which make us feel that life is truly worthwhile. Seeing our children grow up into responsible individuals, knowing that we are healthy, and being able to witness beautiful sights around us are things that make us happy.

Practically speaking, we need money to attain all of these. We need money to send our children to school, good food requires a certain budget, and travel means having some cash behind us to be able to visit amazing places on the planet. But if you think about it, money, as it is, does not make us happy. It’s how we make good use of money that leads to our happiness.

This is why spending money on memorable experiences such as travel or contributing to charitable institutions offers a richer and more rewarding feeling than buying a lavish handbag or shimmering jewellery. What good is it to have a closet full of expensive clothing, bags, and shoes, or a safe box glistening with diamonds, gems, and gold, if at the end of the day, you live your life alone? This is why if you decide to spend your money on something, you are better off using it on an enjoyable trip with your loved ones. Your heart and mind will be fuller with beautiful memories that you can cherish throughout your life.

Sometimes when you need alternative, you can always approach licensed money lender as your temporary measures.

4. It does not take much to manage your finances

So, you just received your paycheck, and you decide to put some money in the bank for your savings account. This is all that you need to do, right? The answer is a resounding “NO”. If your goal is to be truly financially independent, then it takes some work to keep your finances in check. Just putting it in the bank and letting it grow a dollar a month does not amount to anything. This is why choosing a way to save money and let it grow substantially over time can give you more freedom – and an early retirement – that will contribute to your happiness.

In the same way, you have to be on top of all your bills and debts. If you have loans that need to be settled, make it a point to pay these off the soonest possible. You would not want to end up allotting a huge chunk of your money each month on debt payments because these have gone past the due date. Try to pay your loans off earlier, put your money in a low-risk yet high-earning investment tool, and you will soon free yourself from the daily stress of living in a hand-to-mouth existence.

Whether you are married or single, it makes perfect sense to be aware of these irrational beliefs that tend to ruin us and how we manage our lives. The next thing we know, our twisted mentality and lack of values put us in deeper waters. The growing interest rates of our debts and loans, along with the increasing cost of living, and the stress of making ends meet can get to us and give us a feeling of hopelessness. So, we suffer and feel helpless in trying to get out of the vicious cycle of working, spending, and not having enough.

Identify and address these irrational beliefs about finances once and for all. Believe that you are always in control of your life, and it all depends on how you manage it in a logical and sensible manner.

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