Seven Financial Fallacies That Could Be Standing Between You and Your Monetary Freedom
#Secure Your Future: Reasons You Might Not Attain Financial Freedom
It’s likely that each one of us dreams of experiencing the luxury of financial freedom. However, for most people, the vision of retiring early doesn’t seem attainable. People often feel trapped into working until their late 60s, with the notion that financial independence is merely a far-fetched dream.
To chase this dream of financial freedom, you’ll have to maneuver past prevalent money myths and excuses that usually get us stuck in our tracks. So let’s debunk these myths:
1. **The “I-Barely-Make-Enough” Excuse**
It’s a common assumption that retirement is only for those raking in big bucks. But that’s not entirely true. How much you save and invest matters more than your earnings. Even those with fat paychecks can end up saving very little if they spend thoughtlessly. So don’t let your present income hold you back; instead, look for ways to up your earnings game. You can ask for a raise, aim for a promotion, add new skills, move jobs, or explore a side job or personal business.
2. **The “Bottomless Debt” Excuse**
If you’re buried under a mountain of debt such as student loans, credit cards, or other personal loans, financial independence may seem far from reach. However, with disciplined repayment strategies like the debt snowball or debt avalanche method, you can pay off your debts. Just remember, having a plan is key.
3. **The “I-Will-Start-Saving-Once…” Excuse**
If you keep waiting to move past one challenge or another before you start saving, you’ll never get around to it. There will always be factors that could hamper your savings plans. Instead of waiting for ideal conditions, start saving right away, even if it’s a small amount.
4. **The “Investing Is Rocket Science” Excuse**
Investing can feel daunting, especially if you’re a beginner. But it doesn’t have to be if you educate yourself. Start by reading investing books or visiting personal finance blogs for basic knowledge on the topic. Investing can be simple if you get a hang of it.
5. **The “Living Frugally Isn’t For Me” Excuse**
It’s not necessary to scrimp and save at the expense of your lifestyle in the pursuit of financial security. Sure, a bit of cost-cutting can help, but remember, there’s a limit on how much one can save, while the potential to earn more is unlimited.
6. **The “Parenting is Expensive” Excuse**
Yes, having kids can put a dent in your wallet, but it doesn’t mean early retirement is impossible. You can still cut back on expenses or increase income, despite your parental obligations. Hence, having kids should not be an excuse.
7. **The “Too Late to Start” Excuse**
A late start in saving for retirement isn’t ideal, but you can’t turn back time. Taking charge of your financial future now is still better than later, no matter what age you start.
By steering clear of these excuses and following a disciplined approach to money management, the dream of financial independence can be within your reach. For a systematic approach, check out “9 Steps to Financial Independence.”
Before you venture into investing, some user-friendly platforms to consider include Public, Moomoo, and Webull. They offer commission-free trading, advanced reporting tools, investing courses, and even 24/7 customer service.
So, let’s put these money myths to rest and work towards securing a financially independent future. In the end, it’s your actions, not your excuses, that shape your retirement.
