It’s Time To Throw Away These Bad Money Mindsets

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Most of us are bogged down with thoughts of debt, bills, upcoming expenses, and all the worries that go along with them. Of course, you need to be realistic about your finances, but studies do show that the more you focus on the negative aspects of your financial situation, the worse it will get.

People who are prosperous, those that seem to always have enough money to go around, do not focus on their debts. They think about money as a positive thing in their life, something they look forward to getting, and something that they actually expect will come their way. These are the people who find money on the street, get unexpected checks in the mail, or win every time they head into the casino. Because they expect to attract money, that is exactly what they do. Below there are the negative mindset people have about money:

1.Frugal living

A debtor has to make his/her trust deed debt payments over a lengthy span of 4 years. In comparison to other debt solutions, a trust deed makes it possible for a debtor to pay a fixed monthly payment which is considerably lower and is most affordable for him/her. The trustee first analyses his/her monthly income and expenditure and according to this analysis, he/she fixes the monthly payment amount. This means the debtor’s payment burden is greatly reduced. But this does not mean that the debtor continues living the way he/she has lived for all these years. He/she should not take the incorrect advantage of this reduced payment and overspend on any purchase.

He/she needs to keep his/her feet firmly on the ground. Frugal Living is all he/she needs to think and implement. He/she should start spending money according to his/her necessity and not luxury. More clearly, he/she should understand to spend sensibly not driven by impulse or emotion. If he/she starts restricting his/her expenditure to a fixed monthly budget and unfailingly maintain it for these 4 years, he/she would be guaranteed to be highly benefitted after his/her trust deed term comes to an end. Get a loan from Credit Hub Capital today!

2.Living for “now” mentality.

There are many people up to now who don’t believe in saving. Most think since they are not attending to debts, they are probably richer than they think.With this mindset, they find no need to constantly write down all your monthly bills and other expenses. The important thing to remember is to spend less money than you have. However, people who don’t think of saving at all, just live for the moment without considering what might happen to them in the future.This may sound deceptively fun; but, it is a dangerous form of living.

In order to spend less money, you will need to change some things in your daily routine. Avoid visiting shops if you are not planning to buy anything. You will always end up wasting money. Window shopping may be a nice hobby, but shopping itself is an expensive habit. Before spending your money on any particular item, take a moment to think about it. Do you really need this? To make it easier, you can create a list of all the things you need to buy during a month. Or even during every shopping visit. You should always have this type of mindset.

3.Living Outside Your Means

If you find that you are one of those people that have little self-control and cannot resist the urge to use your line of credit then consider asking your credit card company to lower your limit. If you overspend you probably get in a lot of debt which most people don’t care about but later it haunts them. Choose to use only one credit card instead of multiples.

Many of us prefer to use multiple card types due to the fact that certain areas won’t use certain card brands. You can get around this by buying a prepaid credit card with that brand name ahead of time before you go into one of these areas. This ensures that you won’t have to pay another monthly bill for an additional card but you can still spend with your favorite form of currency.

4.Ignoring Paying Taxes.

There have been cases where an individual has never filed a tax return in their life and then proceeded to declare seven years’ worth of income to the Singapore Revenue Agency. If you are behind filing your income tax returns, do not wait until the Revenue Agency comes after you. If they are unaware of your tax debt, you may be eligible to make an application for tax amnesty under the Voluntary Disclosure Program. If accepted you can avoid interest and penalties on your tax debt altogether.

If the Revenue Agency is already after you to file your past due income tax returns, ignoring the problem will not make it go away. They will deploy any number of actions to force you to pay. They could at any time file a notional assessment, which is effectively filing your tax return on your behalf based on what they estimate your tax debt to be. They can then proceed to collect the money through any number of measures that could include freezing your bank account or garnishing your wages.

5.Hating It

Many people in Singapore are dealing with debt and one cause of this is overspending. Below are some of the reasons why people get sucked into spending more than they can afford:

-Shopping improves your wellbeing

-Pressure to conform

-Credit is easily obtained

-Unpredictable lifestyle changes

-Poor money management

-Not keeping a back-up of money

-Nothing else to occupy your time

With the mentalities above it becomes hard for some individuals to budget their expenses.

6.Winging It

When you stop to think about your current mindset as it relates to money, you might think back to what your parents often said about their financial situation. Most people find that the way they feel about money is directly related to how their parents did. If they thought that rich people were greedy and that only hard-working, good people had to earn a living the hard way, then you probably think much the same way and that definitely relates to whether you can attract money or not. If you think you have to be evil to have money, then your prospects are probably not that good.

By changing your mindset to have a more positive relationship with money, one that expects money to come your way, rather than one that expects bills to come your way, you will find that money really does start to head in your direction. You really can attract money in the same way a magnet attracts metal.

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