As much as you stare at your bank account, your expenses and income, and realize that money is a problem, you simply cannot admit it.
For whatever reason, the majority of people who struggle with money have a hard time coming to grips with the fact that they aren’t very good at managing it, saving it or anything else that would be considered positive.
The irony of that is that if you’re having money woes and you can admit it and tackle the problem head on, you’re very much likely to fix the issue and have better money managing habits moving forward.
Getting to that admission phase, however, can be a difficult path for most.
For most of us, you can see the signs quite clearly that money is an issue, most notably if you’re missing payments left and right or simply not paying debt or loans back.
Perhaps even more discouraging are those individuals who believe they’re planning perfectly how they spend their money and yet check their bank accounts or statements and can’t understand where exactly there money goes. Chances are in that instance, you have a leaky budget, holes throughout meaning that you simply have forgotten about expenses as part of your budgeting process.
You’d be surprised how overlooking a propensity to each lunch out at a restaurant every day with throw off how much you believe you’ll have left over at the end of each month when it comes to budgeting and knowing what you have to not only spend but more importantly save.
Budgeting is supposed to be an all encompassing task that should include all expenses when possible that you’re making on a regular basis, whether it’s a bottle of water every day out of your pocket or pack of cigarettes. Money adds up and no incidental expenses should be overlooked.
Also what can’t be overlooked is arguably the worst money habit you can have in your spending arsenal and that is the penchant to spend money on what you don’t need and keep bills that need to be paid on the back burner. If you’re trying to save money for holiday gifts, for example, and you want to pay your mortgage late as a result, you’re exhibiting a money habit that has no place in your financial playbook.
Admitting that you’re not good with money is a difficult comment, but being able to assess your weakness and know how to pinpoint where you’re losing money and ultimately fix it can send you on a path to financial freedom rather than repeating the same money saving mistakes over and over again.