Money, money, money. When it comes to money, there are diverse thoughts and ideas around what it is. Down in its core, money is a concept and there are several myths about what we call money that must be debunked. This will enable us make sound financial decisions for a better lifestyle.
1. Money is evil
When it comes to matters of money, most of us recall “The love of money is the root of all evil”. At the same time, we know we cannot survive without it. Currency sustains us and is used to buy food and water since we cannot survive with air only. But come to think of it, the statement is very but true but highly misinterpreted. It says “The Love”, not “Money” in itself is evil.
2. Only rich people invest
You can start investing at any time with very little than you might think. The myth has been created that men in suits and big bank accounts are those who invest. That is not true. You can visit almost any bank these days and get a good investment package for yourself today and with very little money.
3. My earnings can’t be saved
Similar to investing, we sometimes think we earn so little that we can’t save. It all boils down to our mindset. A good way to get saving is to get the bank to do automatic deductions from your salary account. Also, you can decide to pay yourself from any money you earn which goes into your savings. Just start.
4. Debt is bad
For most of us, debt is bad. This is not always true. For those who know how to use good debt, they benefit from it; Some millionaires like bestseller financial mogul Robert Kiyosaki is a great example. Debt isn’t bad, what you do with the money is what matters. Focus on assets and not liabilities.
5. Giving people loans shows you care
Now it shows you care until your relationships begin to get strained because of money a relative or friend owes you. Its best you just give them the money if you have enough than to loan it out and expect it to be given back.
6. My social security will be enough to take care of me in old age
Social security has been designed to help us maintain our living once we retire. But the amount which is given for such maintenance doesn’t actually maintain our lifestyle. Therefore, if we want to maintain or even have better standards even after retirement, we must pay attention to creating money generating assets which wouldn’t require much work from us during retirement.
7. I don’t need a budget
Budgets are good for monitoring where your money goes. This will help you make better spending decisions as time goes by. Depending on our memory will not work. Keeping a record will do great for us.
8. Higher price means better quality
It is often assumed that expensive necessarily means better quality. I’ve found this to a huge myth that we hold deep within us. Though sometimes better products take more money, its not always the case. We must watch for quality by not looking at price tags. This will help us buy better products and save some cool bucks.
9. I know where my money goes
We use this as an excuse when we don’t want to make a budget and have a dedicated record for how and on what we spend our money. Consider things like Income tax, VAT, bank charges, those little things we often overlook. Cumulatively, day make a mighty ocean of money we lose simply because we think they are small and we can incur them by heart. Impulse buying is another way we spend money on things which don’t matter yet we buy them for funny reasons.
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10. I’m young so I can afford to wait before starting to save and invest my money
It’s never too early to start to invest, save or educate yourself financially. Most successful people actually teach their kids personal finance and business right from their childhood. So what’s your excuse?
Feel free to share your own myths about money. I’m all ears.