Recently, Daisy Luther ("The Organic Prepper") wrote a piece entitled "Seven Lies People with Money Problems Tell Themselves."
She distinguishes between those who are just in a rough patch (hey, it happens to everyone) and those who are perpetually in a downward financial spiral. It's the "downward spiral" people she's addressing. "These lies are very common, and they can keep you trapped in a bad situation for a very long time," she writes.
She lists the seven lies as follows:
• It's not my fault. ("Taking personal responsibility for your mistakes is the first step
toward setting things right. Nearly every financial situation could have
been different if a different series of decisions had been made.")
• It's just this once. ("Whether you’re buying something frivolous on your credit card, going out
to dinner because you don’t feel like cooking, or take some other
shortcut, it’s really never 'just this once.'")
• My children shouldn't know we're having money problems. ("You need to consider that living in a glowing perfect world where every
bill payment is met with ease and budgets don’t seem to exist – things
just magically work out – that’s a fairy tale. And if they grow up
believing in that fairy tale, you are setting them up for a life of
difficulty.")
• Paying off debt is always the most important thing. ("If you are in a bad situation financially, there are lots of things you
should be paying before you exceed the minimum payment on your debts.")
• You have to have a credit card to get by in this world. ("It’s far from a necessity, especially if you have a debit card with the Mastercard or Visa logo on it.")
• I deserve a treat. ("This is one of the most dangerous financial lies out there. If you
believe that budget be d*mned, you have had a bad day and you deserve
that treat regardless, you’re treading into dangerous territory.")
• Money doesn't buy happiness. ("Money makes your life easier, more comfortable, and less stressful. And
while that isn’t a recipe for joy, it sure does help make room in your
life for seeking those things that make you truly happy.")
(Deeper explanations for each point can be found in the article.)
While Daisy makes exceptions for things that are out of one's control – such as catastrophic illness or injury – in other respects she puts financial hardship squarely in the laps of individuals. To be fair, it sounds like she knows what she's talking about. In her past, she's hit periods of economic rock-bottom, including losing her home to foreclosure, losing her car to repossession, and dumpster diving to feed her kids.
Daisy emphasizes changing one's mindset as an aid toward climbing out of the pit of economic instability. Certainly it's a tool in the toolbox.
But has she gone too far? Are those experiencing economic difficulties largely to blame themselves? What are your thoughts?