The Best Personal Finance Myths
There are a lot of myths out there. Some, like Sam Worthington’s most recent turn as Perseus, are well worth engaging with. Others, like the ones below inspired by Your Credit Advisor, are simply things we tell ourselves to make ourselves feel better.
Trouble is, they don’t really make us feel much better and generally they hold us back from reaching our full financial potential.
I don’t deserve to be rich
Unless you’re Justin Bieber, this is a myth. You turn up to work every day and work for your money. That’s as deserving as it gets.
Rich people are [insert derogatory phrase here]
Mmmm hmm, just keep telling yourself that. In a lot of ways, rich people are just like other people. They just have their finances under control.
Your have to have [insert amount] to be wealthy
Reaching a number isn’t going to make you wealthy, and it isn’t going to make you wealthy. Reaching your goals will. Wealth is about being secure, and being able to achieve the things you want in life. That could mean nothing more expensive than a debt-free life and the spare money to go to the flicks once in a while.
Those with Things must be wealthy
How many people were exposed throughout the GFC as having no real financial security, despite the expensive car in the garage and the paintings on the wall? Don’t be fooled by the ostentatious.
Money makes you happy/ money makes you unhappy
Of course, a desperate lack of money is likely to make you quite unhappy. Without that extremity, it’s much more about what you do with the money as opposed to whether you have piles and piles of it. Money is not an end in and of itself.
There’s only so much money in the world
Sure, but there’s plenty enough for everyone to live comfortably if only it was distributed a little more equally.
Becoming rich is hard work
A lot of people who are rich have worked hard, but that doesn’t necessarily imply that it’s unpleasant. Being frugal and sensible, and finding yourself a career you enjoy, all help in the eventual goal of being financially secure, without being too onerous.
Earning a lot of money makes you rich
Depends on how long it stays in your bank account. If you earn megabucks and spend it on your wardrobe every month, then you’re not really rich, you just earn lot.
I don’t make enough to save
Saving can be easy, if it’s automatically deducted from your bank account. It’ll also show the lie we tell ourselves when we pretend we can’t save from what we earn.
Co-signing a loan is no big deal
Mmm, tell that one to all the ex-spouses out there, carrying debt for houses they no longer own.
You must own a credit card
Just get a credit card/ debit card, which acts just like a credit card in terms of online purchases but accesses money directly from your bank account. So no credit, and no unexpected bills.
Sales items save you money
You’re still spending money on the item, so what exactly are you saving? Buying three for the price of two is the same deal, especially if all you really wanted was one.
What savings myths do you tell yourself?
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One Response for The Best Personal Finance Myths
Great tips to open one’s mind. I especially like the one about discounted items. It is not necessary to buy extra of that item to “save” money if you don’t really need all of it. This is especially true of food. If you really didn’t need it you will probably end up throwing it out after it spoils.
Cheers,
Wahid
