"It Won't Happen To Me" - The Mindset That Could Ruin Your Finances

Money & Mimosas

"It won't happen to me."

This is the mindset that could ruin your finances. 

You see, no matter how well planned out your life is, you may be faced with financial dilemmas that could lead you into debt, bankruptcy, and personal and financial despair if your poor mindset has stopped you from making savings or setting up an emergency fund. 

Never assume you are infallible then, and don't fall into the trap of thinking bad things only happen to other people. You aren't surrounded by a protective bubble, and like every other person on this planet, you might one day find yourself in a tricky situation if you haven't prepared yourself financially.

Let's consider your job. While you might have an income that affords you the possibility of a reasonably decent lifestyle, that could all change if you one day find yourself unemployed. You might become redundant, or you might get let go. Circumstances could cause you to quit your job, or you might become unwell and unable to work. Sure, you will be able to apply for certain benefits. But if you don't have any kind of savings in place, you might struggle to pay your bills, mortgage, and any other expense that makes up your daily living.

When I was working as a full-time accountant, my salary was unexpectedly cut by 20% because of a downturn in business. Thankfully I had a side hustle teaching Zumba, but the loss in earnings still took its toll.

Thinking about your health, you might be reasonably fit and well at the moment. However, there may be a time when your health deteriorates. It's not something we want to think about, but it is an important consideration. If you don't have health insurance in place, then you might struggle to pay for any treatment and medications that you need. You might also get injured at work or while out on the roads. While we appreciate that there are employment and car accident lawyers who get extraordinary results, you might still find yourself in a financial muddle while you're waiting for compensation, perhaps because of your medical bills and a loss of income if you have to take time away from work.

And what about your home? If it's ever in need of repair, perhaps because of weather damage or general wear and tear, will you have the income to cover the costs? There are also house robberies to consider. When I first moved to the Bay Area, my beloved and I had our home broken into. We lived in a nice neighborhood and it was during broad daylight when we were out at a festival. We didn’t have rental insurance, so we had to cover the cost of our stolen electronics.

If you don't have home and contents insurance, you will find yourself at a financial loss if the weather does strike your home or if you are the victim of robbery. Your first course of action is to take out the necessary insurance, and the second is to protect your home from weather damage and any would-be thieves. 


You might lose your job. Your health might worsen. And your home could come under threat. While thinking positive thoughts is great, it is also important to not fall victim to the mindset of "it will never happen to me". There’s no need to dwell on the negativity things that could happen, all you have to do is spend a little time researching ways to protect your financial situation. Research insurance companies, open up a savings account if you haven't already done so, and create a separate emergency fund for any catastrophic interruptions to your life. 


Bad stuff happens to good people, so if you have been fortunate in your life thus far, remember that this could all change tomorrow. In short, be prepared so that you can remain financially independent!

 About Money & Mimosas: Money & Mimosas was started as a passion project by Danetha, a former NFL cheerleader and CFO. After a brunch conversation with girlfriends, Danetha was inspired to launch a resource to learn how they could all enjoy life while being smart with their money. Because who doesn’t want to have their money and mimosas, too?

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