Growing up, we were all exposed to various money myths by our parents, relatives or siblings. Fortunately, most of these myths are not true. Or let’s put it this way, times are changing, so methods that may have worked in the past may not necessarily work now.
I know we’ve been encouraged to believe them but if we really want to move forward financially, we need to be aware of these myths on money and wealth so as to avoid them.
1. Working Hard ≠ Getting Rich
Many people think working extremely hard, day and night or having a day job will make you wealthy. Don’t get us wrong, it’s great only if when doing that, you have a projected plan of how this would help you reach financial freedom in time.
No job is guaranteed, so you cannot rely on the fact that a job will make you rich. As cliché as it might sound, it’s more advisable to ‘’work hard and work smart’’. Else, you’d find yourself working hard but still having to live from salary to salary.
These are mistakes the older generation made and can be avoided. Work hard and have a financial plan for your future
2. You Need Money to Make Money
Yes, many people say you do. But the simple fact is that you don’t always need money to make money or start a business. You often hear people give a common answer; “I don’t have money; it takes money to make money’’ when asked about their plans for their future.
A way to solve this could be you coming up with the right idea and then, finding other participants to contribute cash or resources for percentages of ownership. The point here is you do not always need your own money to make more money. You can use other people’s resources legally, and be financially stable.
3. Investment is Risky
Everything you do has a risk in it; life itself is a risk. The best way to mitigate these risks is to educate yourself and same goes for investing. It becomes less risky if you know how to make educated decisions.
You can educate yourself by reading books, attending seminars, speaking with professionals or researching about it. Having to rely solely on people’s opinions about investing is the first step to failure.
We should be conscious of these myths and replace them with facts.
What are the myths you knew while growing up? Let’s know your answers in the comment section below.