Do you think you’re telling yourself the truth about money?

We may think we know the facts about our finances. But our beliefs can often overshadow the facts.  Our wishes, hopes, and fears can tip the scales away from the truth. This makes it easier for us to believe what we want to about money — and it can happen without us even realizing it.1

The money lies we tell ourselves can change the way we think and act when it comes to finances.And since most of us rarely talk about money with our friends and family, the money lies we tell ourselves stick around. That can lock us into destructive beliefs and reinforce poor financial habits.

But no matter what money lies we tell ourselves, it’s never too late to set the record straight.

Over the next few weeks, we are going  look at some of the most common money lies we all buy into at some point — and the truth behind them.

Money Lie #1  I’LL BE HAPPIER WHEN I HAVE $_____.

“With $___ (whatever amount you think is ideal), many of my problems would go away, and I’d be happier.”

Does this sound familiar?

Goals and target numbers for earnings, savings, and budgets are great. But if you make the mistake of thinking some magic number will flip a happiness switch for you, think again.

When we tell ourselves this money lie, we put too much emotion into a single number. And we may be setting ourselves up for disappointment — both if we never get $__, and if we do get $__ and realize it doesn’t make us as happy as we thought it should.

The good news? Studies show that making progress toward our goals can be incredibly satisfying, regardless of whether we hit the target.3

How to Stop Losing Out to Costly Money Lies

How many of these money lies sound like something you’ve told yourself? At some point, I think we’ve all tricked ourselves with at least one of them.

Maybe we were rationalizing a decision, or we were trying to make ourselves feel better about what we wanted to do with our money. And we probably didn’t make the best financial choices as a result.

Here’s the truth.

Honesty goes a long way with finances.

What we tell ourselves, and what we believe, about money influences our financial behaviors. If we’re not telling ourselves the truth, our money lies won’t just drain our wallets. They can affect our financial awareness and inflate our confidence. And they get in the way of maintaining or growing wealth.11   When we recognize the money lies that we believe, we can reset our thinking, change our mindset, and start taking action. And that sets us up to make better choices and make more progress toward our big financial goals.

Stay tuned for Money Life #2 :  I DESERVE IT, REGARDLESS OF WHETHER I CAN AFFORD IT.

Happy Planning!

Anthony Bucci

SOURCES & DISCLOSURES

1 – https://www.apa.org/monitor/2017/05/alternative-facts

2 – https://www.psychologytoday.com/files/attachments/34772/money-beliefs-and-financial-behaviors-development-the-klontz-money-script-inventory-jft-2011.pdf

3 – https://www.psychologytoday.com/us/blog/dont-delay/200806/goal-progress-and-happiness

4 – https://www.prnewswire.com/news-releases/americans-increased-impulse-spending-by-18-percent-during-the-covid-19-pandemic-according-to-new-survey-commissioned-by-slickdeals-301055530.html

5 – https://www.newneuromarketing.com/what-psychology-knows-about-impulse-buying-in-2020

6 – https://www.creditcards.com/credit-card-news/ownership-statistics/

7 – https://www.valuepenguin.com/credit-cards/credit-card-spending-studies

8 – https://www.cnbc.com/2019/03/14/heres-how-many-americans-are-not-saving-any-money-for-emergencies-or-retirement-at-all.html

9 – https://solvingprocrastination.com/why-people-procrastinate/

10 – https://www.statista.com/statistics/944961/personal-debt-duration-usa/

11 – https://www.pnas.org/content/108/Supplement_3/15655

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* Source: Pew Research Center
† Source: “Quantitative Analysis of Investor Behavior, 2014” Dalbar Inc. Most recent data available. An index is un-managed and one cannot invest directly into an index.

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