We all need financial independence and success, no matter what level that means for us. More money means more freedom into living your life to the fullest or provide those you love with all they want. Either if you need to grow your company, get an increase, or easily save more money, financial success needs the same level of mastery. But sometimes is difficult to know where precisely we lose control. Here are some reasons why you can kill your own financial success.
Overspending and Impulse Spending
Overspending is one of some prevalent self-sabotaging behaviors, particularly for millennials. A recent Credit Karma survey found that nearly 40 percent of millennials say they overspend for keeping up with friends. Another study reported that 48 percent of millennials spent more than they can afford on experiences with friends. If you are silently struggling or wondering how everybody else in your friend group may afford to keep up with the nightlife, bachelorette parties, vacations to Europe, or expensive clothes, then know this: they likely cannot. Only paying the at least amounts on your credit cards as well as loans is a sure way to stay in debt for a longer time. For instance, let us say you have a credit card with a $5,000 balance and a 20 percent interest rate. If you make at least a payment of $84 per month, it will take over 24 years to pay off that single card, assuming you do not utilize it during that time. That can sound daunting, but do not allow it to freak you out. It does not mean you will be in debt forever. If you may double your payment to $168 per month, then you will pay off the balance in 3.5 years. The moral of the story is that you aren’t doomed by your debt. However, you would not accomplish your debt payoff goal any time soon by making the minimum payments.
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Avoiding Your Bank Account
If someone asks you how much money is in your account right now, can you tell without looking? How about your credit card balance? Student loan debt? In a study by Northwestern Mutual, 48 percent of millennial respondents said they do not know how much money they’ve in savings. Whether your goal is to pay off debt and save for retirement, if you do not know the details (that is how much debt you have, your checking or savings balance, etc.), then you are likely self-sabotaging.
Putting a limit on your worth.
Early on in life, we sized ourselves up and decided about what we think we are worth how much love we should receive, how much money we should make, how much abuse we have to put up with. Any time we begin to creep above that line, we shoot ourselves back down. Because we do not feel like we deserve further than we are worth. If you’re having problems raising your rates, asking for an increase, and applying to that dream job, take a look at what you think your worth. Why are you scared to increase that limit? Why do not you think you deserve more than you are getting? It can seem outside of us, but the truth is that we are the ones who decide our own worth, and then we tell the globe what we are willing to settle for. Do not settle for anything because you are worth way more than that.
Not Saving Money
Not saving frequently goes hand-in-hand with overspending. You can be telling yourself that you do not have enough money to save, you are living paycheck to paycheck, and that you did rather live in the now and concentrate on saving later in life all of which are self-sabotaging thoughts. Here is the truth: you do not have to earn some money to save, and you can save money while enjoying life today. It isn’t an either/or.
The biggest fear keeping people back from success is to have the fear of failure. We are all terrified that we are going to fail. But who’s the judge of failure? If I trip while I am walking, did I fail at walking? If I get fired from my job, did I fail at business? We are the judge of our failures. We can select to see them as failures, and we can select to see them as minor setbacks. We have the capability to keep getting back up when we fall down or learn new ways to do things. Failure is what you decide it is. Or, if you aren’t ready to throw in the towel and fail, then you can as well take the lesson and try something new.