In this world, there are many different types of people. There are people with a lot of education, and those with little. There are people that are rich and there are others that are poor. There are those who think money is good and those who think money is evil. In short, we all live lives that are unique to us however one thing that seems to be common amongst most people is how they look at money. Most people lack the money making mindset which is holding back their ability to succeed financially therefore, in this article, I will share with you 8 Money Mindsets Only Broke People Have!
Mindset #1: I Can Save Later
Why save now when you can save later, right? Well sadly many people tend to push off their savings efforts saying that it’s fine if they don’t save today because they have the intention to increase their savings efforts in the future. However, it’s this exact mindset that has lead to more than ¾ of Americans living paycheck to paycheck. In fact, nearly one in four people in America today don’t save any money each and every month.
Some people don’t save because they lack financial willpower and others fail to save because they use spending as a way to cope with their day to day stress. However, there is another group of people who shy away from saving and those are the saving doubters. Saving doubters are those who don’t save because they don’t think their efforts will ever amount to anything. In short, they see their savings efforts as futile and this can be true in the beginning. For instance, if you are making a low salary and are barely able to cover your bills, that $50 you save a month won’t seem like it’s helping you grow your wealth by any means. That $50 represents one dinner out or one tank of gas in your car and while these small incremental savings won’t make you rich overnight, they do allow you to start building the habit of saving which is a step in the right direction.
In fact, if you start early, say at age 25, saving 15% of your paycheck — including your employer’s match to your 401(k) if you have one — could help you save enough to maintain your current way of life in retirement. It sounds like a lot, but don’t lose your motivation if you can’t save that much. Don’t be discouraged if you start later than age 25. Beginning to save…