Seven Money Myths

What is money?

Money is something that serves as a recognized medium of exchange. To start the cycle, I exchange my time for a salary given to me as money. Then I use my money to exchange for a roof over my head, food for my body, and other goods and services. These exchanges occur by my choice. If I choose to live in the wilds of Alaska as a hermit, I may not need money or as much.

If I choose to live in New York City, Paris, or London, I may need a lot more money to use for goods and services. But in either event, I am in control as long as I don’t succumb to the advertisers and banks who are always trying to get me to exchange money for goods and services I may not need.

Some of the money myths that exist today are described below. In my next post, we will talk about controlling your money.

Myth 1 — I Need Money to Be Happy

This is a myth that those of us who don’t have a lot of discretionary cash to spend often tell ourselves. But all you have to do is look around at those with money and note that very few are happy.

Myth 2 — If I only earned 25 percent more, everything would be OK.

This is one I believed when I got my first job outside of college and talked to an older friend who just laughed. This concept, if I only earned more, life would be better is a myth that most of us chase or have chased. Making more simply magnifies the money issues you already have.

Myth 3 — Money will solve all my problems

This is just a variation of myth two that earning more will solve my problems.

Myth 4 — I can’t save for emergencies or my future because I don’t earn enough.

This is only sort of a myth because it certainly is valid for the poorest among us. Everyone can and should save. The level is what is difficult to determine. I believe it is easier to save when you are young and single than after you get married and have children.

You can start at a young age with 25% and then perhaps reduce that as your life situation changes. A perfect time to start this is when you get your first full-time job.

Myth 5 — Credit Cards Are Good for You

This is one of the biggest cons banks have perpetrated on our society. The only one who wins the credit card game is the money lenders. We fall for this because we never understand the actual cost of what we buy on a credit card. It is the cost of the item plus all the interest you pay to the money lender.

Myth 6 — You need a budget

The budget has become a word full of negative feelings. You don’t need one. You need a plan for spending and saving your money. I like the term plan rather than budget because we think of budgets as restrictive, and a plan is less so. A plan is flexible and can be changed. People think of budgets as more inflexible.

Myth 7 — I Can’t Control My Money

This is the biggest fallacy of all. Everything you do, all the choices you make, and the things you want; all originate in your mind. They may be put there by advertisers, friends, or your spouse, but you have ultimate control. So you have to exercise that control.

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Bob Barnard

Bob Barnard

Freelance writer: fintech, comp tech, Self Development