Someone told me a joke a long time ago that had to do with me avoiding my problems. When I said I had it all under control they told me I was spending too much time next to that river in Egypt.
Looking at my puzzled face they responded “you know, denial”.
It’s always easier to deny there’s a potential problem ahead than take action to prepare for it. Denial is a great way to avoid responsibility. The “it can’t happen to me” syndrome is based on denial. I see denial all around me and wonder when people will wake up.
Consider these all too common statements:
- “If there’s money left at the end of the month I’ll use it for my emergency fund. Denial.
Let’s face it, with a set up like that there will never be money left at the end of the month.
- “I can pay off my credit card whenever I want.” Denial.
Reminds me of the drug addict or alcoholic who claims they can quit anytime they want.
- “I don’t need savings because nothing bad will ever happen to me”. Denial.
Hmmm, I wonder if that same person remembers the onset of the pandemic when people got sick and many died.
- “I have plenty of time to save for retirement”. Denial.
As any financial planner will tell you, starting early means saving less and getting more later thanks to the miracle of compound interest.
- “I’ll always be healthy and be able to work”. Denial.
We always think we are invincible until a surprise illness shocks us back to reality.
- “The government will take care of me when I want to retire”. Denial.
Seriously, depending solely on the Canada Pension Plan and Old Age Security will barely lift you above the poverty line. Not my idea of a dream retirement.
- “I can always get a job”. Denial.
Having worked in a boom and bust industry for over 30 years I experienced three down cycles in my career. I was unemployed each time it happened. By the way, all industries are cyclical and go through down cycles.
- “I’m living for the moment not the future”. Denial.
This is a great plan, as long as it doesn’t backfire and you end up living a long life.
- “Having debt is good for my credit rating”. Denial.
It shocks me that people still believe this nonsense. This is truly brainwashing.
I could go on but hopefully you get the point. All successful plans begin with a first step. Denial prevents you from taking that first step or continuing a plan to completion. It’s the easy way out and most often leads to disaster.
In my E-books (“Water Barrel” and “The Balance”) I discuss simple methods to live sensibly for today, take charge of your financial affairs, and invest safely for the long term. For more information please visit David Penna Amazon.
As always, I am not a qualified financial advisor. I just relate financial management to my own experience which may not resemble yours at all. Advice is frequently worth exactly what you paid for it. Most of mine came from expensive experiences.
