Are you a natural saver, or do you find yourself wishing you could save more? Do you turn to shopping to cheer yourself up after a rough day or week? According to this article, posted by CNBC, experts say there are 7 money personality types, and knowing yours can help you set yourself up for success. Regardless of which money personality type you are, here are five common money attitudes that hold people back from financial success.
1. Everyone else has it. I deserve it too. Our society definitely encourages indulgence when it comes to spending. Social media has only made a "keeping up with the Jones's" attitude more prevalent. But, there's a big difference between wanting something and being able to afford it, and focusing on how other people spend their money just distracts you from the positive things in your own life. Plus, having the patience and determination to save up for something you really want can give you a great feeling of accomplishment and add to your enjoyment of the purchase.
2. When I don't have enough money in my checking account to cover a purchase, I swipe a credit card. If you are routinely making impulse purchases with money you don't have, you may be heading for disaster. Regularly carrying a balance on credit cards can become a trap that is difficult to escape.
3. Budgets are too restrictive! Actually, the opposite is true. Budgets help you organize your spending to make room for the things you really want to do or purchase. Making, and sticking to, a budget is the number one tool to make sure you are financially successful.
4. There's no point in saving money when I can only put away a small amount. Saving is ALWAYS a good choice, no matter how much you can put aside. All those little tiny bits do add up over time. Plus, saving is really a habit, and once formed, is easier to stick to. It's okay to start small!
5. But this dress is on sale, even though I don't really need it, it's a great deal! Just because something is on sale, doesn't mean it's a great deal if you don't really need it. You are much better off stashing the money you would have spent on the sale item you don't really need into savings.