Breaking Free from Money Anxiety
Growing up, I thought I had it all figured out when it came to managing my finances. My parents, both immigrants, instilled in me the importance of hard work and saving. But as I navigated adulthood, I realized that their well-intentioned advice wasn’t entirely practical in today’s economic landscape.
The Unrealistic Expectations
My parents encouraged me to save 50% of my paycheck, but with rent taking up nearly 40% of my take-home pay, this goal seemed impossible. I felt guilty when I couldn’t meet this expectation, and it led to a toxic relationship with money. I began to question why I was so bad with money, despite being surrounded by people who talked about it constantly.
The Privilege Paradox
I acknowledge that I had a leg up in life, thanks to my father’s financial advisory background. He helped me set up a Guaranteed Investment Certificate (GIC) and a Registered Retirement Savings Plan (RRSP), which gave me a head start on investing. However, this privilege also created unrealistic expectations about my ability to save.
The Spending Myth
I used to believe that spending money meant I was bad with it. But the truth is, necessary purchases are a part of life. The problem arose when I wasn’t tracking my spending and began “treating myself” in a self-destructive manner. I wish someone had told me that it’s okay to spend some of my income, as long as I’m saving a portion of it consistently.
The Power of Surplus
Having a cushion in my checking account makes me feel powerful, not because I need to spend it, but because I have the freedom to choose not to. This surplus also allows for automatic withdrawals, like my gym membership and Tax-Free Savings Account (TFSA), without putting my account in the red.
The Multiple Savings Accounts Trap
I used to think that having multiple savings accounts meant I was good with money. But the reality is, I didn’t have a goal for each account, and it only led to feelings of guilt and inadequacy. Consistency is key, and having a single, achievable savings goal is far more effective.
The Consistency Breakthrough
One high-interest savings account changed everything for me. By depositing $200 every month, I saw my savings grow consistently. It was a simple yet profound realization: consistency is key. I don’t need to save 50% of my paycheck; I just need to commit to a flat amount every month.
The Earning Reality
Lastly, I learned that you can’t save what you aren’t earning. I was trying to live an impossible lifestyle, expecting to save money that I wasn’t making. It’s essential to acknowledge that life is different today, and saving differently doesn’t mean you’re not accomplishing anything.
By breaking free from these money myths, I’ve developed a healthier relationship with my finances. I hope that by sharing my story, others can learn to do the same.
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