7 Money Myths….Get them clear and learn the reality now ….Be Wealthy
These money myths are keeping us poor and I believe if we come out of it it will definitely open doors for us to be wealthy.
(Disclaimer – This post is for educational and informational purposes only. We expressly recommend that you seek advice from a financial or tax professional.)
When it comes to managing your money, you’ve probably heard lots of advice. Friends, family, coworkers – you’ve probably heard a lot of different money views. While some of the tips you’ve received are likely helpful, there are also many money myths floating around that could easily mislead you. We’re taking these dangerous money myths head-on so you can make sure you’re doing the right.
Money Myth Definition
Before I get into the money myth-busting, let’s cover what I consider a money myth.
A money myth is often a long-held belief about money that, while sounding convincing, isn’t true. The fact is that we have probably all been told at least a few of the myths on this list, and it’s often from someone we trust (like parents, friends, or even self-proclaimed finance gurus).
However, some of this advice simply isn’t true when you put pen to paper and start figuring out the math. Some are true but no longer valid or changed their rate or return over the period in growing economy. So, let’s take on these money myths because discovering money truths will lead you to a better financial life.
Money Myth #1. I Don’t Make Enough Money to Save
Of all the money myths, this one is the most popular and is one that I fell victim to myself. I always found that I was outspending my income, and I told myself, “I just need to make more money.”
It’s not an income problem. It’s an expense problem. No matter your income, it is possible to find ways to live within your means. While this may not be easy, it is the secret to financial success.
The best way to make your income work for you is to budget, which leads us to our next money myth
Money Myth #2. Budgets are Painful
When people think of budgeting, they often have an impulse reaction that budgeting is painful or tedious. Or they’ve tried budgeting and found that it just doesn’t work for them.
The truth is this. Whether you make Rs 30,000 per year or Rs 3,00,000 per year, you need a budget. And when you find a budget that works for you, budgeting becomes kind of fun. You learn how to make your money work for you, and you start realizing how much progress you can make
Money Myth #3. My Partner Manages Our Money, So I Don’t Need To Worry About It
Oooh, U know how this sounds, someone else will diet and I will lose weight.
None of us should leave any important aspect of our life entirely in the hands of someone else (even if your partner loves you and is trustworthy)
If you are not communicating regularly about something as important as family finances, you may be in for some surprises (good or bad). Things like that are meant to be shared
in a relationship. If one person is better at it or more interested in it, it’s okay to let them take the lead. But you need to have a look in at least once in awhile
Money Myth #4. It’s on Sale – It’s a Deal!
I know so many people who make purchases mainly because something is on sale. They view this as “getting a deal.”
Let’s take Independence day sale or coming up gudipadwa sale on different e-commerce sites or near by shops, for example. If an Rs 1000 dress is on sale for Rs 700, many of us may choose to buy it. But here’s the truth. You didn’t save Rs 300. You spent Rs 700.
Now, of course, if you are planning to make a purchase anyway, by all means, try to get it when it’s on sale! But don’t make a purchase just because you feel like you’re getting a deal, and don’t buy things you don’t need just because they’re on sale.
Money Myth #5. I Am Young, I Don’t Need to Think about Retirement
When you’re in your 20s, retirement is probably the last thing on your mind. You figure this is something you can start thinking about later in life as you get older. However, nothing could be further from the truth and of all the money myths, this is one that can cost you for years to come.
If you want to retire at age 65 (or earlier), you MUST start thinking about retirement in your 20s. This will give more room for your money to compound….believe me u will be crorepati….
If you take nothing else away from this post, make it this. You must start investing as young as possible.
Money Myth #6. It’s Too Late to Get Started Investing
Let’s look at the opposite of the previous money myth. Maybe you think it’s too late to start investing.
It’s never too late. Your choices are A) start investing as soon as possible or B) commit yourself to financial failure.
No matter when you start, you can make progress towards reaching your financial goals.
Money Myth #7. You Need a Lot of Money to Invest
This next money myth is all about how much money you need to invest. Many people think investing is only for the wealthy and that without a lot to invest, there’s no point starting.
No matter how much you can afford to invest, it’s worth doing. You don’t have to read, research, or ask around. You can get started today, right now. Once you’re comfortable, we can do all that rich person investing stuff. But it’s important to get started ASAP.