In July 2018, I wrote a post talking about my junk financial beliefs.
The longer I spent on the debt-free journey, the more I believe most people have at least a couple garbage ideas about money.
But I’ve also learned this: it is possible to correct these beliefs and ideas — if you’re willing to acknowledge and learn from them.
About a year and a half into our debt-free journey, we have about $20K+ less debt. We’ve learned a lot along the way.
So today, I want to talk about the other side of the coin: my not-junk financial beliefs.
My Junk Financial Beliefs, revisited
Before getting into the not-junk beliefs I have about money, let’s revisit the junk ones I talked about in July.
- The only way to change our financial situation is to make more money
Last July, accepting this as what it is — untrue — was a work in progress. Today, I think that work is completed.
How did I get here? I focused on the evidence.
Last year, we paid off $17K of debt. This year so far, we’ve paid back around $9K.
Our income did not change all that much in this period of time. Instead, we change our focus — and we started seeing results.
- Money saved should never be spent
I still struggle with this, as is clear in this post about how I spent my share of our tax return. It’s dumb, but I often feel guilty when I spend money – even if it’s money set aside for that purpose. It’s something I am still working on.
- A good deal is always worth it
Lots of progress here, too! I am getting better at recognizing deals that are actually good deals — as opposed to those that just look good on paper.
- I am entitled to a certain lifestyle
This one will always be a work in progress. I am doing better than I was before, so I consider that a win.
My Not-Junk Financial Beliefs
For the sake of consistency, I picked four.
- Credit cards are not evil
I wrote a whole series on why and how we use credit cards in our budget (check it out: 1 | 2 | 3). Personal finance is personal. Some people love using cash, while others prefer debit or credit. What’s important is knowing what works for you.
- You don’t have to feel ashamed for having debt
Debt sucks. But feeling shame over it is not productive — if anything, it can set you back.
I don’t like our debt and I can’t wait until it’s gone. But I am also grateful for it. The debt we are paying now — the student loan — made it possible for us for get an education. Education helped us find the jobs we have today.
If you have debt, don’t waste your time feeling ashamed about it. Accept it for what it is and make a plan to deal with it.
- It is important to plan for your future — immediate and distant.
Have an emergency fund. Explore your options for retirement. And do it while you’re young. It will be worth it in the long run.
- Giving isn’t just for people with money
One thing that I am looking forward to about being debt-free is being able to give more. That said, we don’t let having debt hold us back from giving when we can now. It’s not much, but I really do believe everything counts.
Final Thoughts
Adjusting and correcting your mindset about money is not always easy. While I am excited to be debt-free some day, I am grateful for all the lessons I have learned on the journey so far — and I am looking forward to continuing to learn as we keep moving forward with our goals.
What junk financial beliefs do you hold? What good financial beliefs or habits do you have?
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