4 Common Money Myths

There are 4 very common money myths that many of us hold onto tightly. Do you recognize any of these in yourself? Look closely as you read more below. You may be surprised!

Common Money Myth #1: Entitlement: “I deserve to have a lot of money because I work hard”, “I deserve as much as everyone else”, etc.

Reality: While working hard is important, it does not guarantee financial success. Many people work hard but do not earn as much as they would like, due to factors such as the job market, education, and skills. Also, getting caught up in the comparison game is a definite lose-lose situation. Far more often than not, people are posting their “best face forward” moments on their social media feeds. You might see the brand new car. What you won’t see is the huge loan (debt!) that they have because of it. High levels of debt can be a source of stress and limit your financial options. Comparison steals our joy, our paycheck and our sanity. https://www.ramseysolutions.com/personal-growth/how-to-stop-comparing-yourself-to-others

Common Money Myth #2: Independence: “I don’t need any help” or “I can do this completely alone”.

Reality: Being debt-free takes more than just personal effort. It requires a support system of people who can offer guidance, a community of people with similar goals, and accountability to keep on track. Support can come in many forms, such as friends, family, or financial professionals, who can offer encouragement and advice. Community is also important because it can provide a sense of belonging and motivation. Joining groups or forums of people with similar financial goals can be helpful because it can create a sense of accountability and encourage healthy competition. Accountability is crucial because it helps to keep people on track towards their goals. For example, someone who is accountable to a financial coach or mentor is more likely to follow through on their debt repayment plan. See my previous post: https://thumbprint-consulting.com/what-is-a-financial-coach/ .

Common Money Myth #3: Net Worth: “My financial success is a measure of my personal worth”.

Reality: While money can provide security and comfort, it does not guarantee happiness. Studies have shown that beyond a certain threshold, more money does not lead to more happiness. True happiness comes from meaningful relationships, purpose, and personal growth. Do not let your net worth determine your self-worth. Money does not define a person’s worth. Financial success can be achieved through various means, and a person’s true worth is determined by their character, values, and contributions to society.

Common Money Myth #4: YOLO (You Only Live Once)

Reality: Although you should enjoy life and live it to the fullest, that doesn’t mean you should be reckless with your finances. Humans are all about immediate gratification. We love getting exactly what we want, when we want it! Taking control of your finances and living debt free can actually give you more freedom and peace of mind in the long run. The answer to making delaying gratification more bearable? Contentment! (https://www.ramseysolutions.com/personal-growth/how-to-be-content) Be grateful for all that you do have! Money can provide stability, security, and freedom. Budgeting and having financial resources can give you the ability to pursue your passions and live the life you want and maybe even better in the future. Money can also provide a sense of security and reduce stress related to financial uncertainty.