Three Common Mistakes If You’re Living Paycheck-To-Paycheck
- Aug 15, 2023
- 5 min read
Updated: Aug 16, 2023
Written by: Sophie Hau, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
Whether you find yourself indulging in luxuries, binge-watching online courses on how to invest to chase that elusive shortcut to riches, or whatever else you do after your thirties isn't because of poor financial education.
Financial literacy has little impact on one's financial behaviour. There is no surprise why 49% of individuals earning more than USD 100,000 a year still live paycheck-to-paycheck.
So, what's really going on? You're likely making the same mistakes as 90% of people. It's time to identify and conquer these obstacles to pave the way to a fulfilled life. Let's break down these three big mistakes that might block your way to financial success.
No planning
You don't have a well-defined vision for your financial future.
It's like wandering around a new city without Google Maps – disorienting and overwhelming. You might like a good adventure. Good for you. But is it how you want to handle your life? Do you want to live your life by default? Or do you want to choose it intentionally?
We're not talking about the "early retirement" or "financial freedom" generic-type of goals. Instead, I'm referring to crafting a vivid vision that sets your soul on fire, encompassing the sights, scents, feelings, and experiences you desire.
Consider my personal vision, for instance – one of my life goals is to take an extended vacation yearly alongside my partner, exploring a new warm destination for three long months. We yearn to immerse ourselves in a vibrant cultural experience, drawing inspiration from the unfamiliar and embracing the wisdom of the locals. That's living life with purpose according to my terms.
Janet, one of my client's goals is to retire by the age of 50 (in two years' time) so that she can full time babysit her grandchildren and become a role model for them, as she didn't have the chance to be present for her own daughter. She realised that no matter how much money she made, she would never get back those childhood years with her daughter. Making time for it now is the only way to not regret it later.
Your goal is truly yours. There is no right or wrong. You are the one who decides what you want, but you must take the time, question yourself, define what the real you want, and what is electrifying.
It sounds easier than it actually is. Crafting a clear vision of your future can be challenging, as we fear missing out (the infamous FOMO feeling), we question if we're making the right choices, we are overwhelmed with daily obligations at work and at home, we prioritise life based on societal expectations… You must check in regularly with yourself and constantly question what you want.
No automation
The game-changer lies in the realm of automation! Without a well-crafted system that works for you, it's easy to lose track and get derailed. Staying on track then becomes an uphill battle.
If you have a clean blueprint but still struggle with the actual work. It's because you don't want the pain, you don't want the struggle. You just want the easiest path to the outcome. This is why it isn't working.
The shortcuts are the obsession.
This is why spenders are trapped in those get-rich-quick schemes or keeping up the Joneses. You want the outcomes, and you want them quickly.
Shortcuts won't lead you to your goals, but you can create a system to make your life easier. Instead of spending all your Sunday, computing your budgeting spreadsheet or getting distracted by stock performance notifications, get automation.
It's your secret weapon. Implement it effectively and watch your savings and investments grow effortlessly, while you free up precious time for endeavours that truly matter.
As a fervent finance enthusiast engrossed in money topics throughout the day, I love talking about money mindset, researching new topics, learning about the psychology of money, but I only reserve a mere 45 minutes monthly to oversee my personal finances.
I tried trading stocks for a while, and I did this for a couple of months, and on top of the financial gains and losses, I realised later that it was quite a nightmare to spend my whole day on a black screen identifying curves and analysing data for what sake? Doubling my money? Gambling? Having fun?
After that, I stopped all trading and I put everything into automation. Automation handles the rest. Automation can grant you the freedom to immerse yourself in the real passions that spark your creativity, have fun, and explore new things you have never done before!
No guidance
While knowledge empowers, unanswered questions and hidden blind spots can hinder progress. You might have a solid grasp of financial theories, but enlisting the support of a skilled Coach can make all the difference! Consider them a personalised and interactive book, guiding you towards your unique financial triumphs with expertise and accountability and speeding up your journey to success.
Think about it – an author spends years researching and condensing knowledge into a book. A Coach does the same, but they're interactive, like your personal cheerleader! They've been one of my best investments, and I'm not just talking about a money coach; I've hired coaches in different fields, propelling me toward my career, health, and fitness goals, which I'm very grateful for, saving invaluable time and resources along the way.
I'm aware that not everyone can afford to hire a Coach. The alternative is to find a mentor. I've had a lot of mentors, and I also love mentoring others.LinkedIn is an excellent place to start networking if you don't know any mentors around you. You will actually be surprised how people are willing to help and share their wisdom. And for those who don't, it's fine, you don't want them around your life anyway.
Now, if you're still nodding along and haven't conquered these 3 crucial elements yet, it's time to cultivate that mighty financial confidence within you. Financial confidence is the feeling of trust in one's abilities, qualities, and judgement to reach what one wants. Financial confidence enables the plan, the automation, and the guidance: the foundation of a fulfilled life.
And guess what? We all have the power to cultivate robust financial confidence within ourselves. Simply because confidence isn't an inborn talent; rather, it's a skill akin to a muscle that requires nurturing and strengthening. That's the essence of the main difference between those who prosper and those who struggle, those who are wealthy and those who are not.
Embrace the plan, automation, guidance, and the financial superstar within you: financial confidence. Learn to flex that financial muscle and watch your journey to success take flight!
Sophie Hau, Executive Contributor Brainz Magazine
Sophie Hau is a Certified Money Coach (CMC)® who helps overspenders develop a healthy money mindset to create a wealthy life.
With over 15 years of experience working in non-profit, corporate, and entrepreneurship spanning 3 continents, her diverse career has led her to create a company bridging personal finances, coaching, and psychology: Moneysophy. In Ancient Greek, sophy (sophia) means "wisdom" and "technical skill." The mission is simple: popularising the tandem mindset + tools for true wealth.
