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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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Carol Morgan

Dr. Carol Morgan is the owner of HerSideHisSide.com, a communication professor, dating & relationship coach, TV personality, speaker, and author.

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Last Updated on January 21, 2020

How to Develop a Millionaire Mindset in 6 Simple Steps

How to Develop a Millionaire Mindset in 6 Simple Steps

We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

How do you go about developing that millionaire mindset? By following these simple steps:

1. Focus On What You Want – And Take It!

So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

Millionaires play to win, not to avoid defeat.

This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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2. Become Goal-Orientated

It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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If you are to become a millionaire, you need to start accumulating money.

Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

3. Don’t Spend Your Money – Invest It

The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

Stop working for your money and make your money work for you.

Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

There’s not just the stock market — there’s also property, and your own education.

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4. Never Stop Learning

The best thing you can invest in is yourself.

Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

Learn everything you can about how economics works, how the stocks markets work, how they trend.

Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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5. Think Big

While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

Aim for the stars, if you fail you’ll still be over the moon.

6. Enjoy the Attention

To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

More About Thinking Smart

Featured photo credit: Austin Distel via unsplash.com

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