Facing a financial mental block? Financial expert Robyn Thompson identified four of them and her top tips on how to clear them.
FEAR
Fears and doubts are major psychological stumbling blocks. To overcome them set up a personal budget where you list your monthly income and expenses. If your expenses exceed your income, make some changes.
PERFECTION
No one is expected to be perfect so when you open an RRSP or a TFSA and put investments into them, be realistic about the risk you can accept, and your financial objectives. Then select investments to match.
PROCRASTINATION
Procrastination can wreak all kinds of havoc and have long-term effects on our financial health. If you are just making minimum payments on a credit card you are not advancing yourself. So, make a plan to pay off those high-interest credit cards first. Use a personal loan at a lower rate to consolidate your high-rate debts. Use a personal line of credit or a zero-interest credit card balance transfer promotion. And then be sure that pay that off as fast as possible.
SABOTAGE
People sabotage themselves because they believe it will protect them, but it actually does the opposite. To overcome money mindset blocks, first identify what yours are and then identify identify when it happens.
