5 Most Common Myths About Money

5 Most Common Myths About Money

To save money and earn income, it is important to choose the right investment strategy. It's also important to get rid of misconceptions that prevent you from managing your money effectively and earning a lot of money.

1 Myth: Money spoils people

A common misconception many have heard since childhood is that money makes us greedy and dishonest. But how can a piece of paper or a number of zeros on a screen have such power? Money itself cannot be bad or good. The question is how we use it.

My clients often use this myth to justify themselves. They say they don't earn more because of their honesty and they don't want to appear greedy in the eyes of others.

Calling yourself an honest client is easier than admitting one of the real reasons:

  • they think they can't offer people anything of value;
  • they don't feel comfortable talking about money and wages;
  • they don't think they deserve to get more money;
  • they haven't been working to their full potential. 

The demonization of money is a weak excuse for not having it. You can earn several times as much and still be kind and decent. You don't have to make a deal with the devil to be financially successful.

2 Myth: It takes money to make money

This myth mostly applies to investing, starting a business, or raising seed money to develop a project. I don't deny that money is necessary to get ideas off the ground. But you need something else first - a brain. Then you will find a way to get money.

You can move to a higher paying job, win a grant, or find an investor - all of these things require thinking and acting, not opening your wallet.

3 Myth: You need special education to be able to manage money effectively

Knowing how to handle numbers and knowing how to handle money are two different skills. Accountants, analysts and financiers need to be good with numbers, so there are certain requirements for their qualifications.

The ability to handle money properly is another matter. For this you only need to master four simple actions: addition, subtraction, multiplication and division. And also learn to manage your emotions so that they do not affect your spending.

4 Myth: Financial success depends on intelligence

A person's habits and attitudes toward money, not their IQ level, influence their financial situation. Even famed investor Warren Buffett attributes his success to emotional stability and critical thinking rather than intelligence.

  • People with little income are not stupider than those whose income is several times higher.

My clients are smart enough, and they know how to manage capital. What prevents them from achieving their financial goals is their inability to manage their emotions.

5 Myth: Money is not important

Health, love, happiness, and kindness are important parts of life. But that doesn't make money any less important. Money is not important as long as you have it. If you are left without money and have to survive, your list of priorities changes.

  • You can't look at money out of context. Financial status affects other areas of life: relationships, work, mental and physical health, and social engagement.

Sometimes we are ashamed to openly admit that we think money is something important and judge those who say it is. But recognizing the value of money helps us manage our finances more responsibly and increase our income.