I came across this article online and I believe that reading it would be quite helpful in handling your money worries.
Let's go straight to the 7 money lies that you should stop telling yourself right now either you are under 30 or over 30 years old.
1. So long as my job pays well, it's OK if I hate it. The job market
may not be what it used to be, but by age 30 no one should be toiling
away at a job that leaves them stressed out and dissatisfied with life.
were inspired by a young woman who wrote about turning her back on a
lucrative job on Wall Street when years of 14-hour work days made her
overweight, burnt out and miserable.
2.Another lie is that If I turn a blind eye, somehow my finances will figure themselves out.
The worst thing I did in my early 20s was ignore financial red flags when I saw them. I
didn't check my bank account for fear of how low the number would be; I
left my credit report untouched for five years; and I didn't realize my
first job even offered a matching 401(k) until I quit because I stuffed
that folder in my desk and never looked at it.
Look: If you're
broke, you might as well know it and own it. It's the only way you'll
ever truly be able to do something about it.Don't every for once deceive yourself!
3. I should buy a home because that's what grown-ups do.
from the San Francisco Federal Reserve found people who earn 10 percent
less than their neighbors are 4.5 percent more likely to commit
The key word here: Neighbors. Where you choose to live
can have a big impact on how you view yourself, not to mention your
financial well-being. Don't make the move till you're prepared.
estate expert Scott Sheldon points out that consumers aren't ready for
home ownership until their debt-to-income ratio falls below 45 percent:
4. If I start dipping into my savings now, I'll have plenty of time to make up for it later.
you've managed to build a 401(k) with your employer, now is not the
time to start chipping away at all that hard-earned retirement cash.
5. I'm too inexperienced to start investing: When I started earning
enough to consider long-term investing, the biggest hurdle was figuring
it all out with zero prior knowledge. I started small with a savings
account, then built my way up to a 401(k) and Roth IRA through my
I'm glad I did. According to personal finance expert
Kimberly Palmer, someone who begins investing at age 25 will only have
to save $4,830 annually to reach $1 million by age 65, accounting for an
annual return of 7 percent after fees. That figure triples to $15,240
if you wait until your 40s.
6. I'm a failure because I'm not getting paid as much as other people my age.
7. I should have kids now because I want them.
"There is nothing
more destructive to one’s financial future than bringing children into
the world without having an established and stable means to support
them," writes finance blogger Len Penzo.
He has a point. It costs
nearly $240,000 to raise a child in the U.S. –– and that's not even
counting college tuition once they leave the house.
And it's not
just your finances that will suffer if you're not prepared, Len Penzo
notes. "...it becomes extremely difficult to start a business, or gain
the necessary experience, on-the-job training and/or education required
for the type of career advancement opportunities that lead to
significantly increased earning power."
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