 OVERCOMING THE PSYCHOLOGICAL BARRIERS TO SAVING Barrier # 6. Fear of success It's easy to save if you believe in yourself and your goals. But if you lack confidence in yourself, you may not save at all. Many people tell themselves that they will begin to save when their income rises, but few ever do. Unless you put yourself first, when you make more, your expenses will inevitably rise to meet your income and nothing will be left for you. To overcome this barrier, persuade yourself that you deserve to keep a portion of your income for you and your future. Once you truly believe that, make a commitment to set aside 5 or 10 percent of all the money you receive in a special account that's just for you. Just as some people tithe to church or charity, so should you tithe to yourself. You're worth it. Barrier #7. Fear of financial independenceWomen are sometimes balances between wanting the right to control their own lives and make their own choices, and the need to rely on others and be comforted and loved. Underlying this is a fear that if they are successful and self-supporting, they may end up independent and alone. Men are confused as well. They have been raised to show love and affection through providing financial support. If a woman does not need financial support, some men are in a quandary: What do women want from them? Men who cannot fathom substituting emotional support for financial support sometimes pass over independent women and choose dependent ones who want what they've been trained to give. If you shy away from the power and freedom that money can bring, you are not alone. Attend classes on money matters to raise your financial awareness. The wonderful thing about financial awareness is that it builds on itself. The more knowledgeable you become, the more competent others will perceive you to be. That competence will lead to greater opportunity, which leads to greater financial growth. The growth increased financial competence, and greater competence breeds confidence and self-esteem. Barrier #8. Lack of interest in moneySome people have no interest in dealing with their personal finances. They know little about money, and find the subject uninteresting and boring. They may keep large sums in their checking accounts because they won't take the time to seek out investment alternatives. In reality, they are ensuring that inflation will erode the spending power of their funds. Inaction is risky when it comes to money. To deal with money matters when you haven't the time or interest, break your financial tasks into manageable portions. For example, if your goal is to amass $1 million, it may seem overwhelming at first. But though $1 million sounds like a lot, it's really just $1,000 multiplied by 1,000. If you could save $1,000 a thousand times, you'd be a millionaire, and it is even easier than that, because money begets more money through compounding. As you seek out ways to create your nest egg $1,00 at a time, you will become more familiar with the world of money, and that will make it more interesting as well. |