Why People Struggle With Their Personal Finances
There are countless people out there who simply can’t get a hold on their personal finances. No matter how much they try to change their habits and keep an eye on where their money is going, many people feel stuck in a loop of chaotic, disorganized finances. If this sounds all too familiar, then the situation can obviously be very frustrating! Here, I’ve listed three of the most common reasons why people struggle with their personal finances.
Common Reasons why People Struggle with Personal Finances
Lack of financial knowledge: First and foremost, a lack of financial knowledge. Like most people, you probably didn’t have parents who went out of their way to teach you about personal finances. After all, when you were a child I’m sure you were much more interested in playing and messing around than you were watching your parents balance their cheque book or fill in their tax returns! However, as you grew older, if you didn’t take it upon yourself to learn about the various ins and outs of personal finances, it may have led you to a position where you have to read posts like this! Unfortunately, a lot of us are the victims of our parents’ and grandparents’ financial ignorance. However, there’s always time to learn smart saving, careful budgeting and so on. If you can get into some good habits now, you’ll be able to make sure your kids don’t have the same problem.
Fear: Another big reason which causes people to struggle with their personal finances is kind of surprising: fear. Despite what all the cartoons told us in our youth, money really does make the world go around! It’s one of the biggest factors which dictates everyone’s quality of life, so naturally it’s a very emotionally charged subject.
Again, we’ll take this back to your childhood. If your parents were constantly fretting about how tight money was, then it could have left a pretty strong impression on you. For some people, the fear of never having enough manifests in them becoming extremely frugal and careful with money. Some of us aren’t so lucky though! Being skittish about financial failure can lead to rushed, foolhardy decisions, and drive you straight into that rut you were so scared of.
Mentality: The final reason that a lot of people tend to struggle with their personal finances is among the most damaging – an entitlement mentality. Rather than anything your parents did, this issue is rooted in the media. Ever since the noughties, it’s been near impossible to turn on a TV or scroll through a page of YouTube results without seeing some kind of reference to an ultra-rich lifestyle. I’m sure it wasn’t too long ago that you were driving around and saw a gorgeous coupe or SUV.
Well, there’s a fair chance that the person driving it couldn’t afford it all that comfortably! With our modern attitude to entitlement, it’s pretty common for people to get something big and expensive on finance, rather than go to the trouble of saving. If you want to have any hope of a stable financial future, this is something you need to get out of your head!