Conspiracy theorists will argue that money isn’t real but just a concept to some extent that’s true we’re the ones who set the value to things and determine.
What and how much money is to be used for the trade now that we know money serves as a trade medium what are some of the misconceptions.
You’ve heard about money for starters you might think that only the rich have a chance at investments at least that’s what society tells us what.
If i told you it’s a lie and anyone can begin to invest with a small sum of money well stick around to find out more of these lies culture tells about money and some you’ll discover are quite shocking.
1. Bank accounts are the best way to keep your money
Banks have been around for centuries and they seem like a safe bet when you’ve got tons of money lying around they’re believed to be convenient and most of us are lured into opening savings accounts.
While savings are great having all your money stashed up in a low interest savings account isn’t the wisest choice if it’s a small emergency fund then that makes sense many people just tend.
At first it may sound risky considering how volatile the stock markets are but despite the ups and downs the value does rise over in the long run whereas the value of cash decreases due to inflation also consider putting some of your money into basic.
Investing vehicles like low fee funds or etfs that can help you build wealth if you’re not familiar with all these try seeking information.
Online or consult a financial advisor did you know that most millionaires don’t even have one million in their bank accounts most have them out in investments and appreciating assets.
2. You need alot of money to build wealth
Why people believe that you need a lot of money to build wealth is because sometimes it feels like it will take decades to build substantial wealth which seems daunting however saving isn’t about getting stinking rich.
Instead building enough financial muscle to ensure financial security throughout your lifetime as mentioned before fintech has made everything easier.
This gives room for your savings or investments to grow faster than you might think thanks to the power of compounding you can start small and build substantial savings by setting aside money consistently and it doesn’t matter.
That you may not have come from a lineage of wealth what matters is where you’re going not where you came from even the vast majority of rich people.
3. Credit Cards are our friend
Credit cards can either work for you or make your life miserable many americans fall into the credit trap because credit cards offer them the chance to live the american dream lifestyle people tend to misuse the benefits and spend more than what they’re able to bargain for leaving them with tons of credit card debt.
Although they do carry some benefits especially if you’re able to pay up on time the damage they can cause when mismanaging them is far much worse when you do not have money coming in to satisfy your lifestyle avoid credit cards.
All costs no matter how tempting their benefits or commercials are credit cards are not always your friend.
4. Credit score’s not that important unless purchasing property
It baffles me that people believe that your credit score isn’t important simply because you don’t have the american dream of owning a home however applying for a mortgage isn’t the only time your credit score comes into play your credit score can save you or cost you a lot depending on how high it is if you’re keen enough to follow up on.
When your score might be checked you’ll be able to manage your bills and debt wisely if you don’t acknowledge how important a credit score is try renting many landlords take your credit score into account before renting a property to you and utility companies.
Often require a credit check before allowing you to open an account for household utilities also if you wish to seek a bank loan to facilitate a business.
An investment your credit score needs to be attractive because banks do examine this before even considering lending you a single coin.
5. The cheapest option is always the best option
Cheapest option is always the best option while it does seem like a great deal to get something for cheaper it will only make sense if the price difference saves you in the long run than just temporarily whether it’s with your finances or your health career relationships the list could go on.
There’s usually a reason why something is so cheap just be sure to take in all the variables rather than singling it out based on price alone a good example is sustainable clothing as much as fast clothing can cost you less they can only serve you for a short period of time and are usually trend items with one washing.
You find the clothing looking like a souvenir from the 1900s however if you spend thrice that amount on sustainable clothes you find that it serves you for a longer period and even hand it down for generations to come in short cheap is expensive there are no compromises to quality and value they go hand in hand.
6. Wanting more money is bad
Wanting more money is bad we all hear from time to time that money is the root of all evil and most times those who seem to want more of it are considered the devil don’t get me wrong as much as being consumed by greed is bad wanting a better future.
The options widen your preferences not just as a matter of settling out of convenience so please don’t let others bring you down if you’ve found yourself eager and excited about wanting the comfort that comes with having more money money is not the devil it’s how you treat the money that’s the differentiator.
7. You can never out of debt , it’s a doom life sentence
With fifty percent of americans dealing with a negative net worth it’s not shocking that a majority have this mentality that debt is there to stay like a life partner in fact we live in a very consumer consumer-driven economy which makes it hard to resist the temptation to spend even when we don’t have the means.
In return this results in more debt to some it’s a mentality that needs professional help you may come to realize that many people actually use spending to help them feel better.
They can handle it but that attitude is like standing at the bottom of a large hole saying you’ll get out by digging the hole deeper rather than succumbing to depression.
8. Social Security and Medicare will save you when you’re older
we tell ourselves this so we don’t have to save as much when we’re younger and end up spending more money without a vision for the future but the younger and wealthier you are the less likely it is that you’ll be able to depend on social security.
It was simply created as a safety net today The average social security payout for retirees is equivalent to a minimum wage job on average it takes most americans about 2500 to 4000 per month to be truly independent in retirement many can live on less.
But there’s not much living going on instead of relying on a system that’s close to bankruptcy take charge of your own retirement and start saving while you’re young also take advantage of any retirement savings your employer may be offering to avoid disappointment in old age.
9. I deserve it mentality
You deserve all the happiness in the world but there’s a big difference between getting something you’ve earned and getting something you deserve it’s easy to tell yourself you quote unquote deserve something when trying to justify a purchase you probably know isn’t necessary but really want it’s like getting the latest iphone just because you were able to clock in those extra hours at work.
Yet you already have a fully functional phone reframe that entitlement with a bigger picture what you really deserve is to have financial peace of mind before making an impulsive purchase ask yourself.
Or when you receive a credit card bill you can’t afford if it’s an important purchase save to buy it the best way is to set up a separate savings account and make regular deposits until you can afford to buy.
What you want don’t let that extra hard work go in vain and waste in liabilities instead make the sacrifice also entitlement.