BE4C4 Report: The Debt Lies We Tell Ourselves

Shoestring Jane at Mouthy Money: Here are some common lies we tell ourselves about debt.

  1. I’m just no good with money
  2. Debt is normal
  3. I deserve a treat
  4. It’s going to be impossible to pay back my debts
  5. Frugality means deprivation
  6. I don’t earn enough to avoid debt

Final thoughts: You need to be honest about your debts, both to yourself and to those around you who will be impacted. For example, your partner needs to understand your financial situation and come onboard with your plan to deal with your debts. Your children have to learn to understand that sometimes you have to say no to them because money is tight. Dealing with debt requires work and commitment, but the rewards will be worth the effort and ultimately allow you to reach your financial goals. Read all of it here.

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Tim Lemke writes at Wise Bread: When it comes to personal finance, honesty is the best policy. Be honest with banks, be honest with your family, but most of all, be honest with yourself. It’s a frequent occurrence that people find themselves in financial trouble because they weren’t honest about their money situation. But recognizing the most common lies is one key to moving toward a more honest — and profitable — future.

Here are some of the biggest money lies we tell ourselves.

  1. “It’s Good Debt”
  2. “I’m Earning a Return of X%”
  3. “I’ll Start Saving Later”
  4. “I’ll Be Earning More in the Future”
  5. “I Don’t Have Enough to Invest”
  6. “I Deserve This”
  7. “I Saved Money on This Purchase”
  8. “I Got Approved for This Credit Card, So My Debt Can’t Be Too Bad”
  9. “I’m Young, I Don’t Need Health Insurance”
  10. “I Get Paid Well, So This Crappy Job Is Worth It”

Read all of it here.

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