opera.com

Reader mode

Money Blindspots - Road to Financial Freedom

KopanoH 1d

View pictures in App save up to 80% data. Are you struggling financially? Have you tried almost everything to change your financial situation without any luck? This is a challenge faced by many as they try so hard to improve their lives. In most instances, the issue is not about you lacking luck in your financial goals. A lot of people find themselves deep inside financial pitfalls because they are not aware of their financial blindspot. A financial blindspot is a set of beliefs that are entrenched in your mind. Some are ideas or beliefs planted into our minds by those whom we took advice from. Statements like " Money is the root of all evil", have destroyed most people's ability to realise financial freedom. In a real world, the lack of money is the root of all evil. Without money, it is impossible to get through life. The saying should have been expanded than to be left so vague that it betrayed humankind by making some believe that those who chase financial freedom and riches have an evil intent. It has advocated for most people to believe that "maybe they are not cut to become rich or maybe the time is not right". So many times people have been made to believe that financial freedom is not a "Mark of Achievement". They are told that happiness on it's own is a greater rich than financial freedom which is correct and misleading at the same time. One can argue about the quality of financial management education given to people as they grow up. It brings into focus the inadequacy of proper education. I am a believer in financial freedom. Personal behaviour is the biggest problem when it comes to money. Most people tend to worry about how much money that's going out of the their bank account instead of looking at where they are spending all their money. A lot of people have an experience with Stokvels. Some people save money from January to November and get a payout in time for the December holidays of which they will use all the money within a period of two weeks. Most of these people end up having to go the entire January of the New Year struggling to make ends meet. This is a classic example of a money blindspot. Another classic example is when one gets the latest cellular phone which they actually don't need but because they want to impress their peers. They will end up having to pay excessive costs which was not previously planned and budgeted for. It's not your inability to make money that's denying you the opportunity to become a millionaire but it is your error in judgement and your continued failure to know you money blindspot. The road to financial freedom is similar to driving your car in a busy road, if you check your blindspots, you avoid unnecessary trouble and collisions.

These are some of the common Money Blindspots;

Framing Effect

Familiarity

Sensativity to Noise

Short-term Focus

Loss Aversion

Over Confidence

It is important for us to understand what we are capable of and what is limiting us. The sooner we flash out our Money Blindspots the quicker we will get back on the road to financial freedom.

Source: opera.com
The views expressed in this article are the writer's, they do not reflect the views of Opera News. Read more>>

Less Data,More News — Less than 1MB