Tips to Get Rid Of Financial Baggage

Did you inherit any of these bad money habits from your family? Try these simple steps to break the cycle and reach your financial goals.

Early childhood experiences will give you habitual responses to things, and that can include how you manage your financial resources, says clinical psychologist Dr Bob Montgomery. “Growing up with parents who routinely indulged in expensive treats could programme you to develop a spendthrift habit, resulting in serious debt,” he says.

“On the other hand, if you lived in a household that was constantly on the receiving end of cut-off notices and phone calls from debtors, you might find yourself in a similar state of denial when you’re paying your own bills now.”

If you’ve inherited some of these toxic money habits, your first line of defence is to seek financial counselling. Once you’ve been given the money management tools by a qualified professional – such as managing debt, living within your means and how to set financial goals – you may be pleasantly surprised by how easy it is to turn your troubled relationship with money into a much healthier one.

FINANCIAL NAIVETY

Money was a subject that was never discussed in your home, and neither of your parents passed on any guidance or advice. Now you feel lost and overwhelmed as you’re struggling to stay on top of your financial commitments.

TO BREAK THE CYCLE…