Common Bad Attitudes Towards Money

Attitudes to personal finance widely differ across individuals depending on the economic and social conditions. Some try to evolve a different attitude, the moment a debt spiral embroils them. Some do not even realize how they mess up financially and hence lead a stressful life. In such cases, as things worsen, it becomes more difficult to identify your true financial state.

Here, we have gathered some common bad attitudes on personal finance. These attitudes arise from unorganized way of living. If you have difficulties/issues with your personal finance, this article will help you know how to avoid and overcome these attitudes and set your financial life right.

Considering salary like a piggy bank
Working individuals today treat their salary like a piggy bank. They unnecessarily take personal loans, cash out on it, blocking future income. It is not sensible to spend beyond your means by taking loans at high interest rate. Debt is a lazy man’s way of purchasing items. Never take debt for unnecessary spending. You can use debt for emergency expenses, but ensure you take the least amount of loan and repay quickly. The reality is that despite our best intentions, we may overspend on purchases if we take loans.

Instead of purchasing items on debt, purchase on advance savings. And more often than not, don’t buy impulsively without any research. Thus, never make your living on borrowed money and get in to stream of cash payments that continues forever. You may have short term satisfaction from the spending, but you will have lower net salary for many years. A proper planning or advance planning is needed to make payments by putting money each month into saving.

Negative attitude does not solve financial problems
Chanting or repeating few money mantras will not solve your financial problems. If you have an attitude of poverty, it is difficult to do anything about it. If you encounter financial difficulties, you should think practical and be optimistic in order to get rid of them. It is important to know that positive attitude towards personal finance plays a major role in the financial wellbeing of a person. You need to respect the principles of personal finance. You need to confront your financial situation and overcome it, instead of avoiding it or fearing unnecessarily.

Not tracking expenses
Many people actually do not even think to track their expenditure. They often have no idea on how much they spend and where their money is going. If you do not measure it, you will not find overspending patterns and areas. This will prevent corrections and lead you to more problems. As this situation continues, it will be quite difficult to find out your financial state. So, be informed of your spending or expenses by creating a budget and sticking to it. This is the key to survival in order to control/manage your money.

Anti-frugal pro-consumerism attitude
Some people find themselves avoiding frugality. This kind of people say, “we live only once” so, living frugally is for losers and they tend to live beyond their means. While some amount of indulgence is OK, especially considering a person’s income, a self-indulgent lifestyle is irresponsible and insensible, and leads to financial misery.

To conclude, we would like to say that, if you keep learning the concepts and basics of personal finance, you can certainly overcome your bad attitudes. Personal finance depends on your commitment towards sustainable lifestyle. Purchase carefully, deliberate thoroughly. Think through your needs. Do not buy more than you need or something that you do not need. An expensive variety may not be suitable. Learn the basic principles of personal finance and implement the principles for getting your finances on track.