Money is something that drives us all to spend our adult life trying to earn more of. We can’t live without it and cannot live with it too. However, some people have built this misconception about having money that really isn’t true. In this blog we discuss these topics and bust some myths that people have regarding money
Here are 10 myths about money that everyone should know:
Buying things on sale is a great way to save money
People love buying a lot of things during sale, but in reality, buying things on sale has little to do with saving money. Unless you stop at the bank and deposit the difference between the sale price and the regular price, you’re not saving at all. At best, you’re simply spending less.
More money you earn, the happier you’ll be
One thing that everyone should know by now is that money doesn’t equals happiness. The people who earn a lot of money end up spending more as their standard of living grows. Even some research shows that what you spend your money on influences your happiness.
Money is the root of all evil
The truth is that money isn’t good or bad, it’s what you do with it that matters. You have to know that money is about choice, and you can use it to reach your goals, whether, to you, it means creating a savings account so that you don’t have to worry, donating it to charity or leaving it for your kids.
It’s too risky to invest your money
In reality, it’s too risky to not invest your money. Suppose you have stashed some money you’ve saved in a savings account, the chances of losing that money to inflation is higher than investing it.
It’s better to use cash than credit cards while shopping
While cash may come in handy for making purchases but using credit cards has its benefits also. Making purchases via credit cards lets us review how much we spend in one, consolidated place. Plus, credit cards offer protection like insurance for purchases, travel insurance, and the ability to dispute charges.
Wanting money doesn’t make you selfish or materialistic
Money gives you the means to lead the kind of life you want: fulfilling, interesting, secure and independent. Being financially rich gives you choices so you can live a more rewarding life.
Making money isn’t a race
Competition certainly fuels some people’s desire to make more money and sometimes these competitors tend to do things that they shouldn’t for bigger payoffs. But if you stay focused on your own goals and ignore the competitors you will obviously earn more.
You don’t need to have more money to make more money
Small sums can add up to big dividends if you properly use the money you have. People with less money often tend to spend the money they have. Whereas, people with more money think twice before spending it as they rather have more money than none.
Time is money
Quoted by Benjamin Franklin, this statement is true in a sense that earning a salary generally involves the expenditure of time. However, the actual meaning of this statement is to make money even while you’re not working. That’s why investments, royalties and property are important in the acquisition of wealth.
More money means less time with family
If you make a lot of money that means you get to spend less time with your family. This is obviously a myth as if you design and plan your lifestyle the right way, you’ll have plenty of time to spend with your family and make money at the same time.