Have you ever put a label on yourself and then had a hard time removing it? My son is very good with the soccer ball but he hesitates whenever he goes up against bigger and stronger boys because he’s not confident. He often thinks he’s bad and that leads him to not play as well as he could out on the field.

A lot of people do this and it affects all facets of their life. This is especially disastrous when it comes to money. It’s understandable though.

This is because: a) money is a taboo topic, and b) it’s the easy way out. It’s so much easier to say “I’m bad with money” than it is to actually improve the underlying issue.

If you’re constantly thinking you have bad luck with finances or are generally bad with money, you have to first realize that “no, you’re not bad with money.” It’s probably just because of one of these reasons.

Let’s take a look.

1. You’re comparing your beginning to someone else’s middle

This is sage advice from bestselling author Jon Acuff, and it definitely applies to personal finance too. When you’re trying to straighten your own financial mess out, it can be really hard not to compare yourself to someone else.

The problem, though, is that this is the absolute worst thing you can do; it’s a total motivation killer.

Let’s say you’re saddled down with student loan and credit card debt. You want to start saving and investing, but you know you should eliminate all of your high-interest loans first. You devise a plan and get to work.

Then you hear a coworker talking about how much money he has in his 401k, how fast he was able to pay back his student loans, and how he took his family on an exotic vacation.

You may be jealous and feel like a failure. That’s normal. It doesn’t mean it’s the right way to think about the situation though because you’re comparing apples to oranges.

You can’t compare your beginning to someone else’s middle or end. What matters is that you’re getting started now and doing the best you possibly can. The only comparison you need to make is your past self to your current self.

2. You don’t want to put in the work

How many people do you know that could do something amazing with their life if only they’d try? Probably way too many. And if you’re constantly saying you’re bad with money, you might be in the same boat.

Are you really trying when it comes to your finances? Or are you just throwing in the towel and making excuses for yourself?

Money is simple. There are only a few basic things you need to know. What’s hard is having the discipline to put in the actual work.

Before you make excuses, make sure you’re actually trying in the first place.

3. You don’t know where to start

To me, this is the only excuse with merit. You want to improve your financial life, so you make a list of things to work on. The problem is you’re trying to work on so many different things that nothing seems to stick.

Does that sound familiar?

If so, you’re not bad with money: You’re bad at focusing.

Instead of trying to work on everything at once, pick one thing. It could be something like starting an emergency fund or paying down the debt on one of your credit cards. Once you zero in on one task, concentrate on it until you’ve reached your goal. Only after finishing that should you move to the next item.

Conclusion

It’s very rare that someone is simply “bad with money.” Instead, this problem usually stems from self-comparisons, consumerism, and unclear goals. The good news is that all of these can be fixed. You just need to start doing.
Have you ever said you were bad with money? If so, why?

Tagged as: Advice, Better Yourself, Money Beliefs