What’s the most important key to successful finances? Change the way you think about money.
If your money mindset is off, you’ll never really be able to get ahead, whether you bring in $30,000 a year or $300,000. Once you get your perspective straight, it will be easier to maximize the money that’s coming in.
Here are six common bad money mindsets you may be falling into, and how to break free of these mental traps.

Living (Only) in the Now 
It’s hard to make your money stretch when you’re only focused on what’s easiest and most appealing right now. Sure, it’s quicker to grab a coffee on the go than to make it at home, but brewing coffee at home could save you money. The latest smart phone may be calling your name, but if you’re willing to live with last month’s model, you could put that money towards building emergency savings.

Rather than living only in the current moment, set aside extra for your future self to enjoy.

Extreme Frugality 
Bargain-hunting is one thing; being cheap is another. Don’t focus purely on the price tag. Instead, think about quality and overall value.

Shell out an extra $20 or $30 and you could get a pair of shoes that lasts for years, rather than one that unravels at the end of the season. Spring for buying the ingredients for fresh homemade meals rather than living off the dollar menu at your local drive-thru, and the positive effects on your health could save you thousands in future medical bills.

Likewise, don’t waste your precious time trying to pinch pennies. While it’s good to be money-conscious, don’t forget that your time is your most important asset. 

Living Outside 
Your Means
Credit card debt can keep you in financial shackles for decades. Stop telling yourself you ‘deserve’things you can’t afford. Remind yourself that what you really deserve is a life where you don’t have to work until you’re 80 to keep the bills paid. 

Don’t purchase consumer items on credit. Instead, save money in advance, so that you can treat yourself to an item that you can truly afford.

Winging It 
It doesn’t matter how much money you make if you don’t know how it escapes from your wallet. If you don’t have a budget, come up with one. Same goes for building an emergency fund and creating a retirement savings plan. When you don’t track where your money is going, it has a tendency to get away from you fast.

Hating It 
‘Budgeting’ doesn’t have to be a dirty word. Neither does ‘savings’ or ‘retirement planning’. There are so many apps and tools out there that can take the hard work off your shoulders and even turn maximizing your money into a game (or, at least, a fun challenge). Find the tools that feel the most intuitive to you and money management will come much easier.

Ignoring Taxes 
It’s tempting to overlook taxes. They seem boring and complicated. But these make a big difference in the amount of money that stays in your pocket. Tax planning is as crucial as budgeting, investing and all other forms of financial management. If you decide to move to another neighborhood or state, for example, think about how this move will impact your tax bill and consequently, how it will affect your overall budget.

The Balance

 
• most important key
 
• successful finances
 
• change way you think