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7 Excuses Most People Use To Avoid Financial Responsibility

7 Excuses Most People Use To Avoid Financial Responsibility

We would all love to be millionaires. But let’s face it, most people never make it that far. Most of us stall somewhere around the middle class. And that’s not too bad considering the fact that half of the world’s population lives in poverty. Our culture values money and possessions — almost to the extreme. This fosters a ‘keeping up with the Joneses’ (or Kardashians) kind of mentality. People want to be rich — or at least look like they are rich. Because of this, many people make irresponsible choices when it comes to their finances, and many of them make excuses for it. Here are seven of them:

1. I always scream, “YOLO!!!!” (You Only Live Once).

I’m not sure if most adults have heard this ‘Yolo’ term, but it’s one that kids tend to be using these days: “You only live once!” And that is true (unless you believe in reincarnation). But while that term implies living life to the fullest and embracing the moment, that way of thinking can get you into trouble of you don’t think about the consequences of your actions. If you rack up a pile of debt so big that you will have to spend the next 10 lifetimes paying it back, well, maybe you shouldn’t ‘live in the moment’ quite so much.

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2. I need to impress everyone.

This is deadly. As I said in the opening paragraph, many people do have this need. However, what is the point? Just because you don’t live in a huge house or drive a fancy car doesn’t mean that you aren’t successful. In fact, I bet most of the people who do own all the ‘rich-looking’ stuff are really drowning in debt. Wouldn’t it be better to live in a modest house and drive an average car knowing that you can sleep at night because you are not drowning in debt? I think that sounds like a better option.

3. I don’t think money is important.

If you’re thinking, “Money isn’t everything!” then you are probably being financially irresponsible. Of course money is important! But if you think that it isn’t, then you have an attitude of carelessness. If you don’t think money is important, then you won’t pay attention to how or where you spend it. And this lack of attention will get you into trouble.

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4. I can just live off of credit cards.

You do realize that at some point you will have to pay that money back, right? And you will probably have such a huge balance that you will never pay it off. So then you might think, “Well then I can just declare bankruptcy. No big deal.” Well, guess what? Not only does bankruptcy ruin your credit for a very long time, the debt just doesn’t magically disappear. Someone pays for it. And who is that? The rest of us. The companies you don’t pay will have to raise their prices to make up for the loss — higher prices that we all have to pay. Or maybe taxpayer money will go into paying off your debt. However it works, it all comes down to one thing: not taking personal responsibility.

5. I’m already in a ton of debt, so what’s a little more?

That attitude is what got you into the mountain of debt in the first place. Little by little, one small purchase after another adds up to one big mess. It’s kind of like eating a whole birthday cake in one day, bite by bite. Each bite seems harmless. But as you slowly eat your way through the whole cake, suddenly you ate just that — a whole cake. Remember that each step along the way stacks on top of the last and eventually they add up.

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6. I can’t invest my money — I might lose it because it’s too risky.

True, any investment is risky. However, if you are investing for retirement or for your children’s college tuition, then that is a very good reason to take the plunge. As the saying goes, “Nothing ventured, nothing gained!” So if you are avoiding a strategy that could grow your money into a nest egg in the future, then maybe you should rethink your actions.

7. I like to buy things on credit because I can take a long time to pay them off.

This is like the ‘lay away’ mentality, but you actually get to enjoy the thing you bought. Yes, a house usually takes 30 years for most people to pay off. Cars take around five years. Those are normal purchases that we expect to have to pay over time. However, those are necessities. Some things you buy probably aren’t. If you find yourself thinking, “Hey, it might cost $5,000, but the payment plan says I only have to pay $20 a month…so apparently I can afford it!” Well, maybe you really can’t.

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Financial responsibility is really the same as personal responsibility. You just need to be self-aware enough to know that your actions have consequences, not only for yourself, but for other people as well.

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Published on July 4, 2018

Top 10 Recommendations on Money Management Apps

Top 10 Recommendations on Money Management Apps

Don’t want to overspend your budget, swipe your credit card too many times, and feel like a financial mess? Instead of beating yourself up for the bad financial decisions you’ve ever made, create a new plan!

The solution is simple, save more and spend less. But, we all know it’s easier said than done.

One problem is finding quality apps that save you time and money, and aren’t just hype.

Luckily, there’re many great money management apps available at your fingertips. Here are 10 reliable money management apps that can help you save money, and crush debt.

1. Personal Capital

    When was the last time you’ve tracked your net worth? Probably months ago or maybe never. Personal Capital allows you to easily track your net worth and plan for retirement.

    Here are some of its main features:

    • Sync many investment accounts, and expenses (mortgage, credit cards, etc.) in one place
    • Discover hidden fees and how much they’re affecting your retirement plan
    • Wealth management for investors requiring a long-term strategy

    With Personal you’re free to track your expenses and net worth.

    Available for: iOS and Android

    2. Mint

      If your smartphone could only install a few apps, Mint would be one of them. Why? Because Mint tracks all your balances and bills in one place.

      Here are some of its main features:

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      • Effortlessly track all your bills and balances in one dashboard
      • Categorized expenses to understand where you spend your money
      • Uncover hidden fees, and determine your investment style with sophisticated retirement tools.

      Feel at ease with managing your money by a reputable company that isn’t going anywhere.

      Available for: iOS and Android

      3. YNAB

        Everyone needs a budget, there’s no way around it. YNAB (You Need A Budget) is an easy to use app that will change the way you think about money. Their motto is to “give every dollar a job”, and you’ll quickly discover why.

        Here are some of its main features:

        • Easily sync all bank accounts in one place
        • Visually see your debt paying progress with eye-catching charts and notifications
        • Customized categories setting saving goals

        The best part about YNAB is the community that comes along with it. You can hop on the YNAB forum to receive support, listen to the YNAB Podcast or stay tuned for their weekly videos.

        Available for: iOS and Android

        4. Wealthfront

          Albert Einstein once said “compound interest is the eight wonder in the world”, and for a very good reason. The problem is, most people are scared or unwilling to learn the basics of investing. This is why Wealthfront is the perfect solution for the hands-off investors.

          Here are some of its main features:

          • Variety of investment account options including IRA, Roth IRA, and more
          • Your portfolio composed of 7 different asset classes
          • Automatically rebalanced portfolio
          • Daily tax loss harvesting

          Wealthfront is perfect for people requiring investment guidance, or prefer a hands-off solution.

          Available for: iOS and Android

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          5. Clarity Money

            If you’re staying on top of your budget but want to take your finances to the next level, Clarity Money can help you. Clarity Money helps you stay under budget and build a personalized savings plan.

            Here are some of its main features:

            • Easily cancel subscriptions with one click
            • Synchronize bank accounts fast
            • Transfer money effortlessly between different accounts

            Clarity Money isn’t an app that does it all. But, it does make transferring money and canceling subscriptions fast and efficient.

            Available for: iOS and Android

            6. Acorns

              What if there was a way to quickly gain confidence in investing your money, without too much risk? There is, and Acorns is your solution. With Acorns’s technology, you’re able to make investments as small as $5.

              Here are some of its main features:

              • Automatic contribution option
              • Customized portfolio tailored to your needs
              • Low management fees ranging from $1-$2 per month

              Stop wasting dollars on expensive coffee. Instead, invest them towards a brighter financial future.

              Available for: iOS and Android

              7. Albert

                Do you budget by only subtracting your expenses from your income? If so, how would you discover any overpayments or extra money you could save? This is where Albert shines, and it does it all free.

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                Here are some of its main features:

                • Receive notifications for overpayments, hidden fees, and low balances
                • An Automatic budget that’s built around your spending and income
                • Easily track debt and set new financial goals

                While Albert does offer a paid option, most of its core features are FREE. So, what better option to save?

                Available for: iOS

                8. Prism

                  Have you recently forgot to pay a bill because life got in the way? Prism automatically tracks your bills and syncs your bank accounts in one place.

                  Here are some of its main features:

                  • View all your account balances in one glance
                  • Bill due dates are automatically pulled and tracked
                  • Receive early reminders for upcoming bills

                  If your budget is on “fleek” but can’t seem to stay on top of your bills, Prism is your go-to app.

                  Available for: iOS, Android, Windows, Amazon

                  9. Mvelopes

                    Remember hearing about people using envelopes to budget their money? Well, Mvelopes is the new envelope system for this generation. Easily create monthly budgets and track your saving goals.

                    Here are some of its main features:

                    • Connect unlimited bank accounts
                    • Real-time budgeting with auto transaction syncing
                    • Low monthly $4 fee or $40 annual

                    Mvelopes can help you crush debt, save more, and help you stop overspending. With its low monthly fee, it’s worth a try.

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                    Available for: iOS and Android

                    10. Wallaby

                      Most people don’t have time to track their credit card’s changing rewards and interest rates. Because of this, you need help reaping the most of your credit card’s rewards. Wallaby is the app that will help you do just that.

                      Here are some of its main features:

                      • Automatic recommendations for the best credit card to use for each transaction
                      • A friendly user interface, displaying credit cards with their corresponding images
                      • Free to use

                      If you’re using the same credit card to make your purchases, you may be leaving money on the table. Give Wallaby a try if you’re ready to maximize your credit card’s rewards.

                      Available for: iOS and Android

                      Take control of your finances and experience financial freedom

                      Picture yourself staying on budget and saving more money than you’d ever imagined.

                      It took hard work and dedication but you’d finally learned how to manage your money. You have to start taking control of your spending and saving habits.

                      You now have a list of reliable apps that can help you build better money habits, what are you waiting for?

                      Featured photo credit: Pexels via pexels.com

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