Don’t Cheat Yourself Out of Money

canstockphoto11731606Cheating yourself out of money might sound like a foreign concept. If you’re the kind of person to read personal finance blogs, you might even think of yourself as incredibly thrifty. But most of us cut corners on our personal finance plans. Others simply aren’t that consistent when applying strategies to real life. Whatever the case, the more you are able to follow the tried and true methods of the financially independent, the sooner you’ll achieve real wealth of your own. To do this, you’ll have to commit and stop cheating yourself out of money. Here are common ways people cheat themselves.

Work Long Hours then Don’t Budget. This is a very common thing to see. And it’s so absurd that it’s almost unimaginable. The equation is very familiar. Person A works 50 hours a week at a job he doesn’t even like. He comes home, chills out, then splurges on the weekend. He tells himself that it’s ok to spend a little extra on these days, because it makes the workweek a little more bearable. But if he had just saved more of his money, he might be able to work himself into a situation where he could quit his job and live off of the money he’d saved and invested. If you don’t like working, and you work hard, you’ve got to budget, save, and invest or you’ll just be working to work. What could be more ridiculous?

Ignore What’s Going on In Your Bank Account. Very frequently, people get caught up in the hustle and bustle of life, ignoring what’s really happening with their money. One example of this in recent history is PPI in England. A PPI claims calculator can give you an idea about how much people were spending, but it may surprise you to know that they didn’t know that they were doing the spending. PPI is an example of a service sneaked into complex financial contracts, and thousands of people signed up for it without knowing, throwing away hundreds of pounds a year. Keep careful track of the money that goes into and out of your accounts, and follow up with any unfamiliar or unwanted transactions.

Don’t Educate Yourself. One of the best ways to make more money, and to do it in a way that you enjoy, is to improve your education. Education costs money – that’s a reason that many people don’t embark upon it in later life. But investing in yourself is an incredible way to make all of your work more efficient. You’ll have greater skills and command a better price for your time. If you’re young, there is no reason not to educate yourself intensely. If you’re old, it is likely still worth it, even if it’s just for your own enjoyment.

It’s important to think clearly about the financial processes which you initiate. Your money is your responsibility, and in most cases if you lose it, this is your fault. There are some ways in which the system is gamed. But if you pay attention and commit to good financial strategies, you should set yourself up for success in the future.