People across the globe face a serious dilemma when it comes to money. These misconceptions surrounding money are common and potentially debilitating. Have these myths have become a driving force for people to misuse their money. I will be highlighting 14 of these misconceptions about money and why they are not true.
1. A penny saved, is a penny earned.
This highly popular misconception is used and applied by many worldwide. They believe that the money they save is increasing their income. One should stop focusing on expenses and pay attention to the income and the problems caused when you run short of money.
2. Money is happiness.
Another believed misconception is that the more wealth you have, the merrier, you will be. At the end of the day, it is not the money you cherish but the people and sentiments surrounding you.
3. Millionaires have a fancy life.
To become a millionaire, you need to be a spendthrift. All millionaires stick to cheaper products to reach the position of a millionaire. This misconception has misled many to hopes of being rich.
4. Money solves all problems.
Money does not buy you happiness. It can cure some diseases and allow you to buy some fancy stuff but it does not take all your worries away. It’s time you got rid of this misconception.
5. Loans are safeguards.
When short on cash, loans are not a good alternative. There are better options than loaning money and indebting yourself more.
6. Housing is the best investment.
This misconception has cost many. The costs involved in buying and maintaining houses are high. Property prices keep on varying too.
7. Money is security.
Many have the misconception that money will make their life secure. They disregard the unpredictable pattern of life that cannot be solved by money.
8. Invest in only known avenues.
You need to invest in different avenues to reap benefits. Investing in only one avenue is not safe at all times.
9. Secure finances after 50.
Many believe in the misconception that you can change your financial situation after the age of 50. This is not true as youth is the prime age to structure your finances and secure yourself for later on.
10. You can buy friends.
The misconception that money can help you buy friends is highly false. You will find temporary people who can use you for the time being but not friends.
11. High incomes will keep debts away.
High incomes cannot keep debts away such as mortgages. At times, debts increase with income.
12. Banks are the best place to keep the money.
When keeping money in savings accounts, many overlook the concept of inflation. The interest rate does not rise accordingly, causing you to lose out on the value of money rather than increasing it.
13. Money lets me travel.
This misconception has been placed in many heads. You can travel to nearby locations without needing a lot of money.
14. Insurance is necessary.
Throughout your life, you spend excessively on your insurance which can lead to financial insecurity. It is better to save money than pay heavily for different insurances.
People need to see the reality behind these misconceptions and try to look towards money from a different perspective. Life does not necessarily become better when you’re rich.