5 Money Myths
If you’ve every watch Mythbusters, you’ll know that myths generally be proven or disproven. Today, consider me your personal money myth buster. I’ll be reviewing these key myths and truths about money. Trust me when I say the truth will suprise you.
Myth Numero Uno (Number 1): Budgeting is hard.
This myth is rooted in the fact that budgeting would normally be done by an accountant or mathmatically gifted individual. Thankfully, you don’t have to be good at math or great with Excel to be able to create a budget. You don’t need a certificate in financial planning or a degree in business. to get this right.
All you need are the right tools.
Here are a few of my favorite budgeting apps.
- Mint.com lets you categorize, project, and plan for your expenses through an easy to use desktop and mobile app.
- Qapital is an app that syncs to your online bank and saves your funds in an FDIC insured account. By saving through customized “rules,” you can input your goal and choose how you would like to save. You can save through rounding up to the nearest dollar, saving $1,000 in 52 week, or save a percentage or dollar amount at a specific time.
- Long Game is an game app that links to your bank account to save money in an FDIC insured account. The app allows you to earn coins each time you save money. The coins can be used to play games which can earn you extra cash or coins in the game. The great thing is that you can withdraw your money at any time and you will not lose any money.
Related Post: Save Thousands With These Mint.com Hacks
Myth Numero dos: (Number 2 ): I don’t have enough money to budget.
For the most part, budgeting doesn’t require that you make tons of money. Budgeting simply allows you to understand where your money is going and helps you consider making different choices. The only exception to this myth is if you do not currently receive any income. Although this may happen to some, on the majority many people receive some type of income. Yes, even money from parents can be considered income if you are using it to pay for your expenses.
The truth is that not having enough income, can help you determine what next steps you need to take in order to reach your ideal budget situation.
Related Post: How I Turned My Theater Degree into a Profitable Career
Myth Tres ( Number 3) : Money will buy me happiness.
This is an age old myth that has been disproven time and time again. The Consumer Financial Protection Bureau (CFPB) recently did a study on financial wellbeing and found that the amount of money a person received, did not determine a higher state of financial wellbeing or happiness. See the full report here.
If you are constantly focusing on what you lack instead of what you have, you’re missing out on the bigger picture. T. Harv Ecker says in his book Secrets of the Millionaire Mind: Mastering the Inner Game of Wealth that, “Money will only make you more of what you already are.”
If you focus on being thankful, giving, and caring gaining money will make you a more generous and loving person. However, if you focus on worry, anxiety, and a place of lack, even if you have money- it will still never give you any satisfaction.
Related Post: My Battle With Perfectionism
Myth Numero Quatro (Number 4): Finances Are Stressful.
This myth is rooted in frustration because of the many intracies of money have pushed people to believe that finances are a very important but stressful part of their lives. The reality is that finances do not have to be stressful when surrounded by the right team.
I’m not a huge sports enthusiast, but even I know that when you have great players on a team and a great coach, a team is more likely to get farther faster. The same is true of getting the right people in place when it comes to your finances: accounting, budgeting, and analyzing your future finances all have their correlations in the world such as accountants, financial coaches, and financial advisors.
Myth Numero Cinco (Number 5 ): I don’t need any help with my finances.
If you’ve ever been sick and went to work anyways, you’ll know how difficult it can be focus on your job because you are sneezing, have a headache, or perhaps are even losing your voice. Can you continue with your work? Yes, but it will probably be extremely frustrating, uncomfortable, and so much easier if you were healthy. When most people aren’t feeling their best, they tend to go to a professional like a doctor or nurse practioner to ask questions and get a prescription. It’s considered normal and even encouraged to maintain a healthy lifestyle.
The truth of the matter is that just like your health can impact your outlook on life, your finances can have a major play in your mood, communication with family, and your life choices. The Consumer Financial Protection Bureau defines financial wellbeing as, “can feel secure in their financial future, and is able to make choices that allow enjoyment of life.” You can read the full article about financial wellness here.
Talking to a professional can help you determine how to minimize financial stress, maximize financial goals faster, and give you the peace of mind knowing you have a plan in place. Also talking with family or friends can move you from feeling overwhelmed to a confident financial individual.
In conclusion, the truth is that these myths were based out of a fear based mentality and when you consider all of your options you can make a game plan to accomplish your goals.
In October 2018, I’m fortunate to be able to launch Her Designed Life’s first Financial Wellbeing Course in Madison Heights, Michigan. If you aren’t local to the Detroit Metro area, stay tuned ofr some awesome online coursework soon! In the meantime, you can send me some questions or sign up for a free financial consultation to help you refocus your life and money. You can sign-up for a free 15 minute appointment here.
Tell me what are some money myths you know about and how do you overcome them!