Published On: Thu, Aug 28th, 2014

Financial Lies You Can’t Afford to Tell

liar Whether we are lying to ourselves or lying to each other, sooner or later our financial lies will come to light.  Now I’m not saying you’re a liar, I’m talking about your neighbor.  Over and over I meet people whom say they don’t make enough money to pay their bills or they can’t afford to save, but when they really assess their spending they find out where the money is actually going.  Now I feel in my spirit many of you are rolling your eyes, but please understand I realize many people are unemployed, under-employed or truly struggling to make the ends meet.   Let me tell you of my own “swiping indiscretions” (this is code for overspending), so you will understand I speak from my own experience.  When debit cards came on the scene, my financial lies came to light when my habit of dipping into my savings to make up for the lies I was telling myself led me to an empty saving account, no emergency fund and a panic attack.  Here are four financial lies we can’t afford to tell ourselves, because in the end, your finances will tell the truth and nothing but the truth. 

  •  “I can afford it, I make good money” – This is probably true but if you are not properly managing your “good money” you will find yourself in a “bad money” situation.  Ask any star, entertainer or lottery winner whom ended up penny less or bankrupt.
  •  ” I can save for retirement later, I need all my money now” – When it comes to investing and retirement starting sooner is always better than later.  The days of counting on a pension, the government or family members to take care of you in retirement are rapidly becoming a faint memory.  Investing early takes full advantage of the power of compounding interest.  
  •  “Oh this is a business expense”. Okay so you’re going to spend $28,000 leasing a car to have a $7000 tax deduction ($28,000 x 25% Tax Rate bracket = $7000).  Do the math friends, “You is smart, You can count and You is getting played”!  Instead of jumping on the latest and greatest in the world of business or investment strategies, do the homework to see if it fits your current situation.
  • “If I just made more money things would be better” –  Money management skills and personal finance knowledge are not a part of our genetics.  They also do not automatically appear when we become a legal adults. If you are currently having trouble managing your money, a financial increase is no guarantee your trouble have gone away.  I suggest a minimum 30-day spending fast to get a handle on where your money is actually going before you incorporate additional income into your
Rhonda Williams

Rhonda Williams

Financial Management Counselor at Operation HOPE
Ms. Williams has been teaching and encouraging clients, peers and her family in the area of personal finance for more than 10 years.Ms. Williams is known affectionately as the “All Cash Queen” among her peers and family.As a certified financial counselor, Rhonda brings a wealth of knowledge, expertise and experience to her audience.
Rhonda Williams

About the Author

- Ms. Williams has been teaching and encouraging clients, peers and her family in the area of personal finance for more than 10 years. Ms. Williams is known affectionately as the “All Cash Queen” among her peers and family. As a certified financial counselor, Rhonda brings a wealth of knowledge, expertise and experience to her audience.

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Did you know?

African Americans are significantly more likely to have some type of debt (94%) compared with the general population (82%). Credit card debt, student loan debt, and personal loans are all significantly higher in the African American community.

Source: Prudential’s 2013 "African American Financial Experience" study