Financial myths that you should stop believe in

 

There are many myths about finances circulating around the world. We keep hearing them and start to believe in them. Over time, this can become dangerous because believing in such myths can effectively change our approach, and instead of trying to get rich, we may decide it's not worth it. Below, I will present and debunk some of the most frequently repeated myths about money.

1. Money can't buy happiness

Actually, it can. Research has proven that up to a certain point, higher earnings significantly affect the level of life satisfaction. Money can free us from many worries that we wouldn't be able to escape without it. This myth is usually repeated by poor people who, in this way, deceive themselves to avoid feeling bad about their poor financial situation. Of course, money is not the only component of happiness. There are many rich and unhappy people in the world, but those people would probably be unhappy also without money.

2. Money corrupts people

Money doesn't corrupt people; it rather highlights the traits they already possessed before acquiring it. A naturally good person will remain good regardless of how much money they have.

3. I have nothing to save

This is nothing but a convenient excuse for people who are financially uneducated and show no willingness to change it. Each of us, with proper effort, can save from our household budget. If you think otherwise, please read this post. If, however, you have already cut everything you could from your household budget and still barely make it to the next paycheck, it should be a strong motivation for you to increase your earnings or find additional work, one way or another.

4. Not everyone can become rich

This myth is effectively debunked by people like Nick Vujicic (born without arms and legs, author, and motivational speaker who speaks worldwide) and Ronald Read (a janitor from the United States who died with a fortune worth $8 million, amassed through long-term and consistent stock market investing). If they could do it, why can't you?

5. If something is more expensive, it must be better

This belief is held by many people, and indeed, it often happens to be true, but it should never be treated as a hard rule. Sometimes a product that is objectively worse or of very similar quality can be more expensive simply because the store imposed a higher margin due to spending more money on its marketing. Before making a purchase decision, don't rely on this myth; instead, check if the more expensive really means better.

6. The first million has to be stolen

This saying is repeated by people who would like to be rich but are not necessarily willing to make an effort in that direction. This myth also suggests that it's impossible to get rich legally, which is obviously not true. Hard, long, and consistent work can bring you the desired million, even faster than you think.