From tender age, we were exposed to myths about money and myths of being rich. Be it from our parents, brothers, sisters, relatives, or friends. The myths that we have determine our financial well being in our adult lives.I call them myths because they are not true. Or, at least they are not giving you
complete picture.
We can't blame our parents for
myths in us. They already gave us
best they could. And don't forget that times change. Things were true then may not be true today.
If you want to move ahead financially, you have to be aware of
myths that you have about wealth and money. And do not let
myths stop you from living a wealthy life.
Money Myth 1: Work hard and you'll be rich. Many of us think that by having a job with a big company would ensure that we're on
path to financial freedom. With so many layoff announcements, we might be out of job anytime. I'm not saying that you'd be one of them but
fact is there is no job that is guaranteed.
Recently, my friend was laid off in less than a month in his new job. Having a job is merely helping you to cope with daily expenses, providing you shelter, food and clothing. Do not be misled that a job or your employer will turn you into a rich and wealthy person. No one cares more than you about your wealth.
Money Myth 2: Saving is good. When I was small, I was told by my mother that I must learn to save. I thank my mother for inculcating
habit of saving in me. The habit of saving helps me to develop discipline. Many people think that when they save enough, one fine day they'll be rich.
But is saving alone enough to make you wealthy?
I came to realize that if I only depend on my savings to get rich, I'd have to wait for a long time. That's
problem with savings, it takes a long time for you to get rich. Saving alone is not enough. You have to learn to invest your money in other investment vehicles to grow your money faster.
Money Myth 3: Debt is evil. The other common myth about money is debt is bad. Did your parents ever tell you that borrowing was bad? Mine did. Not all debt is bad, actually. It depends on how you spend your loans that you're getting. If you take a credit card loan to buy a flat plasma TV, it's a bad debt. On
other hand, if you take loans to start a business or invest in real estate,
debt is good.