June 1, 2016 - by Finance Unfiltered Learn, Live, moneylife
No shame in the money game.
5 Signs you are afraid of your finances
As millennials, we have so many reasons to be afraid of our finances. A lot of us have little to no savings, a lot of student debt, and no idea what we’re doing when it comes to managing money. Some of us are well aware of these financial fears – but some of you – may need help recognizing how this fear manifests and the patterns we’ve developed to cope with being financially overwhelmed.
You think more money would solve all your problems
You have a decent job, you’re learning a lot, but you don’t feel like you’re making enough – by the way this feeling never goes away! It’s hard to feel like you’re making enough when your friends are traveling all over the world and plastering their fun all over social media. If you manage to pay your essential bills and your student loans, your leftover money may only leave room for Netflix and cereal for dinner, but with enough planning and actual budgeting, you just might be able to fly first class to Dubai!
2. You consistently overspend
You’ve grown tired of stressing over how much money you’re spending, so you go on with your life without checking your bank and credit card accounts. This deprivation anxiety is more common than you think. You figure you can just deal with any financial problems that come around later. You might say to yourself “I knew my rent was gon’ be late about a week ago…” so what’s a couple extra dollars here and there? Yikes!
You’re really cheap (and you know it)
Not only do you look for discounts or less expensive items, you also may choose to go without to avoid an expense all together. If you’re like me, you are so paranoid about unexpected expenses that you are overly frugal. You make excuses not go out, you buy mostly frozen food (because who wants to waste money spoiled produce), and you may or may not have a working driver-side car door handle. Another way to rationalize being cheap is thinking that underspending can help you save but that brings me to my next point…
You don’t have any financial goals
You’re probably afraid of your finances if you saving just to save and don’t have plans to save for something exciting. You feel like budgeting is merely to ensure you can cover your bills and you don’t save for fun things like a mini spa day, quick day trip, or even a nice dinner. In other words, you don’t have a “treat yo’self” line item in your budget.
You pay your bills without reviewing your account
When your bills come in the mail or are automatically debited you don’t think to double check the charges. Somehow you think ignorance is bliss and inadvertently value not knowing over asking questions and fixing the problem.
If you can’t tell by now, I have done all of the above at one point or another and I am still recovering from some fears, but trust me, the benefits of taking a more active role in your finances outweighs your fears. You realize you might have more money to spend than you think you have; and if you don’t, getting a second stream of income becomes a must have and not just a daydream.
Sometimes necessity is a great motivator to get out there and network to find new opportunities to make a little extra cash. But the real moral of the story, as cliché as it sounds, is that knowledge is power. Knowing what you have in your account, how much you will have, and what you’ll do with it, helps you discover options. It’s hard to feel stuck when you have a plan!
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