If there are many myths about one subject, it is money. That’s a shame because taking these myths as the truth often leaves you more destitute than you need to be. Therefore, in this article, we will discuss four common myths about money that you should no longer believe.
Knowing more about money matters is the best gift you can give yourself.
Myths about money
These common myths about money are simply not true.
1. I earn too little to invest
Of course, it is important to pay your bills first and have a well-filled piggy bank before you start investing. But contrary to popular belief, you don’t need to have thousands of money lying around to be able to invest. You can invest with just a few bucks a month.
And if you let the interest-on-interest effect work for you (the eighth wonder of the world according to Albert Einstein), your wealth grows exponentially, and those tens a month can yield an excellent fortune in forty years.
2. Saving and enjoying are two opposite concepts
Many people think they have to choose between saving and enjoying because many things they enjoy cost money. Think about it: that fabulous holiday, new bag, or glass of wine on the terrace are all not free. Nevertheless, saving and enjoying can coexist.
It’s all about balance. Of course, there is nothing wrong with a dinner here and there, but those dinners are all the more fun if you don’t eat out every day. You also have to save less on the things you enjoy if you save on fixed costs that you have to pay anyway.
3. More income means more wealth
At first glance, this doesn’t seem like a crazy idea. But when people start earning more, they often spend more. That means that they have the same amount left over at the end of the month as before. You can still be bad with money if you have a high salary.
The solution? Add each salary increase to the amount you saved anyway. After all, you didn’t need the money for this either. So that money can go straight to your savings account instead of spending it extra. Only then does more income mean more wealth.
4. It’s rude or uncomfortable to talk about money
Talking about normalizing money has numerous benefits. Talking openly about money with your partner, for example, prevents a lot of frustration and quarrels. And openness about our salaries ensures that everyone just gets paid what he or she is worth.
After all, we never learn how to manage our finances. If we all talk more about saving, budgeting, investing, and negotiating, we are more likely to hear tips and tricks that could help us. So it’s high time to say goodbye to this myth and all the other myths about money.