Our unique perceptions and feelings about money impact how we handle our finances. Below, we’ve broken down a few money perceptions and provided tips to maximize financial success for each. 

“Money is meant to be spent.” It is important to enjoy or celebrate success and accomplishments in a way that is meaningful to you, and spending some money may be part of that. However, it’s important that we don’t overspend or rely on debt to sustain a lifestyle. People who enjoy spending may find success with automated savings, so they don’t have to actively decide to save; retirement plans are great for this, since contributions are deducted directly from pay. Lastly, if you do like to enjoy your income, a budget is a great tool to ensure you have a plan to spend within pre-determined limits.

“Money is a finite resource, and I don’t know what the future holds.” Planning for the future is important, and those who view money as limited can find comfort in having an emergency savings (about 3-6 months of living expenses). To help overcome any guilt or worry that might be associated with spending, try specifically saving for certain goals (i.e. a vacation or new car) so you can track progress made towards that goal and pay in cash when the time is right. Using saved money to pay for things in cash will also eliminate the interest and risk associated with taking on debt.

“Budgeting is a chore I don’t have time for.” No one enjoys adding additional work to their plate, especially if you’re already tight on time. Therefore, you may find success with generalizing budgetary categories so you can still gain insight into how much you’re spending each month, without getting too granular. The budget is meant to be a tool rather than a chore, so you can feel empowered to make modifications that work for you.   

“I’ll look at my finances later.” It can be tempting to push off financial tasks, especially if it is overwhelming. However, saving for retirement is one area where procrastination can negatively impact the ability to build sufficient savings. Taking some focused time to ensure you are participating in your workplace retirement plan, have an investment strategy that meets your needs (your plan may have a qualified default feature that can help with this), and have a beneficiary set up is all you need to do to get started. Most plan websites make it easy to get in and out efficiently.  

Educational use only.