Our financial behavior is greatly influenced by the way we perceive money. Financial decisions are made with consideration of the existence of one sum of money or another, but also rely heavily on the values on which we grew up, the economic reality of our family during our childhood, and the way our parents made financial decisions.
Sometimes the connection between our economic perceptions and the attractive financial services offered to us causes us to make the wrong decisions. Financial services are presented or perceived differently from what they really are – we wear a disguise, and we make decisions that sometimes do not benefit us financially.
Minus masquerading as the money we have
The credit facility at the bank is well disguised as the money we supposedly have. Utilizing the credit facility is actually a loan for all intents and purposes, and the “minus” we use is not money that really exists in our bank account, but money that we borrow. Our money runs out when the frame is reset.
Read more: A minus in the bank is the problem, not the solution
Holiday gifts and convalescence allowance masquerading as increased income
This money, which comes at fixed times of the year, gives us the feeling that we suddenly have more money to spend. In most cases, we had already taken it out long before it arrived because we knew we were supposed to get an extra amount of money.
Loan funds to cover the overdraft disguise themselves as a bank account in good condition
The moment when the money from a loan taken to cover the overdraft enters the bank account is an extremely misleading moment. The plus account creates the feeling that all the problems have been solved and that there is breathing room, you can pay the delayed payments and buy things that we could not afford to buy before. In fact, upon receipt of the money into the account, the purpose of the loan to cover the overdraft becomes ambiguous and the money is also used for other expenses.
Moreover, if expenses continue to be higher than income, soon the overdraft in the bank account returns to increase, just as it was before taking the loan, only this time there is both a minus and a loan to repay.
Savings masquerading as a loan
Saving is the right way to fund future plans. However, when we on the one hand save but on the other hand we also have an overdraft or a loan, there is no economic justification for saving. Savings bear a low interest rate every month, while the interest paid on loans and overdrafts is high, meaning that saving “costs” us precious money. It is recommended to manage the family budget in balance while allocating an amount to save from free money.
Income masquerading as profit
When you ask a self-employed person how much you earn per month, usually the answer we get will correspond to another question – how much is your monthly income? The net that actually remains after paying expenses and payments to the authorities is much smaller, by tens of percent.
Download MORAN – a tool for calculating monthly profit from an independent business
An average salary masquerades as a high salary
A month in which a higher salary was received, or a month in which the income received in the business is high, gives the illusion that the average income is as high as that in the good month. In fact, the truth is hidden in the average annual salary, and only according to which the structure of expenses should be planned.
A lot of cash in your wallet masquerading as a good financial situation
The feeling of having a lot of money in your wallet can be confusing. On the one hand, there is cash that can be bought and a feeling that there is a lot of money, but on the other hand, the amount of cash in the wallet does not indicate at all the state of the bank account.
Installment buying masquerades as a low cost of a product
There is no shortage of sellers who will try to convince when buying an expensive product that buying it in many installments will allow you to buy the expensive product without feeling its cost. There is no shortage of buyers who are convinced that this is indeed the case and are tempted to purchase the products they cannot afford, in installments.
