What are your money beliefs? Could you list and then define them? The way you behave with money proves what you truly believe about it.
And whatever it is you believe you've likely picked up by observing how the adults in your life handled their money. You then began imitating that behavior.
People without strong financial belief systems will fall for anything. With no belief systems, they cannot trust their own ability to make sound decisions.
Is there a solution, an antidote, for financial ignorance? Yes. You gotta' get some financial religion.
In the same way you need a set of strong spiritual beliefs and values upon which you base your life, you need a set of money beliefs on which to base your finances. Spiritual values give your life meaning and purpose. Financial values produce confidence to make the right decisions with money.
1. Learn effective money management. Personal finance and money management is easy to learn. The difficult thing is to decide to do it and then follow through.
2. Believe in effective money management. You must be convinced it's not how much money you have but what you do with it that matters.
3. Trust in your system. Once you've established your money belief system and have your management tools in place, you must trust them.
4. Establish a routine. Your financial "religion" must become a priority in your life. In the same way you schedule time for your friends and family, you should
5. Identify the enemies. When it comes to money management, you need to be on guard for your two worst enemies: emotions and consumer debt. A strong belief system will keep you from being derailed by your emotions or the temptations of consumer debt.
6. Build a firm foundation. Developing a strong foundation based on your financial "religion" will prepare you to handle life's curveballs.
Without a strong belief system, good economic times can be perilous times. It's when times are good that people get casual with their finances. You could easily start repeating the mistakes that got you into trouble in the first place. Good economic times will become a nightmare unless you consciously choose to dig in and work even harder.
Are you ready to begin working on your money belief system? Start by developing those money principles by which you live your life in good times, in bad times and all the times between. Make sure you address matters of giving, saving, investing, credit, spending and debt. Know what you believe so you'll be confident to handle any financial situation that arise.
Even though it may sound difficult, it's not. Just take it slow and easy, don't panic and whatever you do, don't give up.
Write to mary@everydaycheap skate.com or Everyday Cheapskate, P.O. Box 2099, Cypress, CA 90630.