Money is not a particularly easy subject to talk about. When they do, they either feel uncomfortable or they lie about who much money they make, among others. We tend to lie ourselves about how much debt we are shacked to, and even how much money we are going to need for the future. There is great speculations about how to spend money and sometimes we lie to ourselves to feel better about our purchases.
The rule to all of this is that there is no rule at all. There's smart spending and then there are no rules that work for everyone. You don't have to sacrifice your avocado toast to buy a house - like Australian real estate mogul Tim Gurner advised young people - as long as you don't spend too much money on avocado toast regularly.
You can thrive financially by finding out what works for you. You may spend more money on smoothies, but then you ride a bicycle to work and you save money on transport. Therefore, that balances it out. Sometimes we just need to treat ourselves to continue working hard and saving on other things. The key is to not overdo it. Investing in the latest model of a MacBook might help you make more money as a freelancer, for instance. If you went out for breakfast, don't go out for dinner, unless you are on holidays, and then all bets are off.
The key to it all is that you need to balance it out. You can buy anything you want as long as you don't buy everything you want. You need to be selective and figure out what you really want, really need, and can afford without jeopardizing your ability to buy a house or having financial stability.
Here are some popular money lies people:
"Avoid credit cards"
Although this rule applies to people who can't control themselves and they spend too much money when there is not limit and then find themselves in huge debts, it doesn't mean that credit cards are the root of all evil. On the contrary, using credit cards wisely can help you to budget yourself better, help your peace of mind and to be at ease. Besides, the more you use your credit cards - for instance, when you are travelling - the more rewards you can claim. It is really up to how you function.
"You need a great deal of money to start investing"
There are many options out there for you to start investing with as little as $5. You don't need to have huge savings to start investing. It's only a matter of participating in some scheme that will pay off later on. Remember that small amounts that mean nothing to you now, overtime they can turn into huge investments.
You need to spend money to make money
This maxim depends on you go about it. Sometimes investing in business can lead to more money, but you can't always apply it to your personal life. If you don't need something, then you need to save it. There are other times, however, when you need to invest in a project or an instrument to make money.
Then there are the lies we tell ourselves:
"I'll have plenty of time to save money later"
It's not easy to save money. There's no instant gratification and it means you are sacrificing other things you want now. What it comes down to is why should you deprive yourself of what you want now to prepare for an uncertain future. Millennials, in particular, usually get that feeling of uncertain future as they don't usually have job stability which deters them from saving in some cases. However, if you can put aside a small amount of money overtime and try not to think about it being there, it can really pay off and it works easing your mind. It's important to have some backup this day and age.
"I can afford it"
You work hard and you feel like you deserve that very expensive object that you don't really need. You tell yourself that it might be a sacrifice and you will be low on money for quite a while but it will be all worth it. Then after you make that initial down payment and you commit to a monthly payment, you crunch the numbers and realize that this purchase is going to take a toll in your finances. You tell yourself you are going to save money on other things, but suddenly this new toy becomes your life and you have no money to purchase anything else, or pay what you really need to be paying.