Here are five lies you’re probably telling yourself about money.
- You have “good debt.” We’ve all been told there’s a difference between “good debt” like student loans or your mortgage . . . and “bad debt” like from credit cards. And while it’s true that some kinds of debt are worse than others, it’s best to avoid it altogether.
- You don’t have enough to invest. If you have enough money for a Netflix subscription or a cup of coffee at Starbucks, then you have money you can invest.
- You’ll be earning more in the future. We all want to assume we’ll earn more as we get older and more experienced, but there are no guarantees.
- You saved money buying something on sale. If you rationalize a purchase by saying it was on sale, or that you used a coupon, you’re ignoring the fact that money still left your wallet. You only truly “save” money if you were planning to buy it anyway.
- You get paid well, so your crappy job is worth it. Financial security is important, so it’s not necessarily smart to quit your stressful job, follow your passion, and become a professional “Pokemon Go” player.
But if you live reasonably and spend wisely, you should be able to find a middle ground where bills get paid AND you’re happy at work.