Money myths that you should unlearn today

There are a lot of myths that surround money. Myths are false beliefs that have been instilled in us by the society we live in. A lot of us carry around these untrue beliefs that could have been taught to our families or friends from generations. These myths about money limit our potential of becoming financially empowered and hold us back from achieving our financial goals. If you give a lot of thought to what people say and make your financial decisions based on them, you are hurting your chances of financial success. Being financially literate, educated and avoiding these money myths are some of the important factors in making our relationship better with money.

Here I list a few of the money myths that you may have heard of and felt like believing in.

1. “Money is the root of all evil of all evil”- while the reality is money in itself in neutral, it’s the actions and values that you attach to it that is what determines whether it is used for good or bad outcomes. Money can be a powerful tool for change, positive impact and growth.

2. “Saving money means you’re being cheap”- while the reality is that saving is about being smart and intentional towards your financial goals. It’s about making conscious and better choices. For saving more, you don’t have to sacrifice quality of life, it means aligning your spending with your values and long-term goals.

3. “You need a lot of money to start investing”- while the reality is Investing can be started by individuals with various income levels. While having more money to invest gives you better chances in getting larger returns, anyone can start investing with even small amounts. It is more important to invest consistently over long term.

4. “You have to be an expert to manage your own finances”- while the reality is that financial advisors can be helpful, managing your own finances is a skill that can be learnt and improved over time. Basic financial literacy, such as budgeting, saving and understanding different investment options is accessible to everyone.

5. “Debt is always bad”- while the reality is that debt can be a tool for financial growth if managed properly. Not all debt is bad or equal. There are different types of debts with varying levels of risk and potential benefits. Understanding what is good (mortgages, business loans etc) for you and what is bad (credit card debt etc) is quite critical.

6. “You have to have a high income to achieve financial stability”- while the reality is that though higher income can facilitate financial stability, it is not the only determining factor. Managing your expenses, saving, making informed financial decisions regardless of your income level are equally important. Financial stability is achievable for anyone with the right money habits and money mindset.

7. “You have to work hard to become wealthy”- while the reality is, hard work is important, you have to be smart, strategic with your financial decisions, and create multiple income streams to go up that wealth ladder. Building wealth is about leveraging your resources effectively and efficiently.

8. “Investing is the same as gambling”- while the reality is investing involves strategic decision making based on research, analysis and understanding of different investment options. While there are risks associated with investing, it is not based on pure luck and chance. Investing is about knowing your risk appetite and making informed decisions to grow your wealth.

While some of these money myths are quite obvious, a lot of us still use these statements and create limiting beliefs for ourselves. Addressing these money myths can help build a better relationship with money and set you on the path of financial empowerment.