Much like when we say our friend’s new haircut is flattering or their homemade pie is delicious, the financial lies we tell ourselves come with good intentions. They’re minor, simple little stories that are easier to hear than the truth. But unlike those white lies we spin to spare our friend’s feelings, our financial lies can do considerable damage.
When it comes to finances, honesty is the best policy. Use this guide to make sure you aren’t making 3 of the worst financial fibs.
I’ll start tomorrow
After a long day at the office or looking after the kids, you want nothing more than to sink into the couch cushions and queue up the next episode of American Gods. A night of binge-watching is usually accompanied with promise that tomorrow is the day you’ll jumpstart your next financial goal.
Perhaps the worst of a bad bunch, financial procrastinators sabotage their financial goals simply by putting them off until tomorrow. Despite their best intentions, “tomorrow” rarely comes when you expect. The day they finally buckle down could be next week, next month, or even next year.
When it comes to savings and retirement plans, assets that benefit from long-term investment and compounding interest, you’re harming your bottom line with every day you delay. Think of the money you’ll lose due to your procrastination. Use that as motivation to do it today, rather than tomorrow!
This loan is perfect for me
You won’t be able to name a person who hasn’t relied on financial assistance at least once in their lives. Whether it’s a student loan for college, an auto loan to lease a new car, or a mortgage to buy a house, loans give you the ability to achieve huge financial goals. They can even help when your ambitions are much more modest, like when you have to consolidate debts to pay off multiple bills, cover an unexpected vet bill, or make a necessary household repair.
In the face of these time-sensitive tasks, many people feel pressured to secure a payday loan as soon as possible, rates and terms be damned. Then they lie and say it’s the only loan that works for them. With more than 20,000 payday lenders in the States, there’s bound to be an option better suited to your needs.If time allows, do some research about the products available to you. Regardless of your financial situation, you can find a loan that does work with your finances.
Some lenders — such as Texas’ MoneyKey, a Credit Access Business (CAB) — offer flexible cash advances that you don’t have to lie about. An installment loan arranged by MoneyKey involves longer repayment terms that coincide with several pay periods, so you won’t compromise your budget in order to pay back what you owe in time. They offer the same amount of money as a typical payday loan (usually no more than $1,000), but they give a little more breathing room.
This won’t matter
A full-price ticket to see Spider-Man: Homecoming, your daily coffee run, that candy bar when you pay for gas. These kinds of purchases are a budget’s worst enemy. We make them often without a second thought because of their size, as most of us fail to see how a $2 coffee can make or break our finances in the long-run.
No purchase is insignificant but small purchases are particularly insidious. If they only cost a handful of dollars, you may forget you bought them in the first place. As you begin to lose track of your extra cash, you can keep making these purchases without realizing it’s your 2nd or 3rd coffee of the day. Once you start to add up each frivolous item, you can easily spend more than you realize.
The Bottom Line? Stop Lying
There’s a time and place for a lie. While you may avoid telling your friend the truth about their unflattering haircut, you shouldn’t pull the wool over your own eyes any longer. Be honest with yourself about financial goals and stop fibbing about borrowing and spending habits. Once you start living a more honest life, you’ll live a more financially free one.