(ThyBlackMan.com) While only a small portion of society is really rich, almost everyone has something to say about money and especially about being rich. The only problem with money-making tips and ideas is: most of them are completely wrong. The good thing is, these myths can actually give you an idea of how not to plan your financial journey. Let’s take a look at some common misunderstandings about money.
- Financial pressure is good for you
A lot of people think that they work better under pressure. Although it’s true that sometimes, pressure makes you more productive, but there’s a downside to it. Stress affects the quality of life, especially when you are under financial pressure. People often take loans or borrow money from others thinking that the pressure of repaying the loan will make them work harder. This is one of the myths people believe about money. Money can make you work more, but that’s slavery, not freedom. The best way to avoid this is simple: make plans and work on them rather than relying on your biased intuitions.
- Prioritize immediate needs over long-term goals
A survey by Female Financial Empowerment revealed that only 25% of women have plans for retirement savings while others prioritize their immediate needs over long-term goals. Furthermore, the report also reveals that 66% of women have never taken the services of a financial advisor. This lack of financial confidence is not only hurting women, but it is also equally hurting men too. This attitude negatively impacts their major financial decisions. Waiting for the perfect time to begin saving is the most common reason why people suffer later in life. In life, there will always be many other priorities, so the best time to start saving money is sooner rather than later.
- Money ends anxiety
For most people, money in abundance will be the end of their mental stress. If you’re in the same boat, get down and think again. When you have more money, you start worrying about losing it. That’s how money works. The amount of money which you thought was a lot in the past looks small to you now. And it’s not because things are getting expensive, it’s because when you acquire more wealth, your perception about money changes, you start worrying about losing it. It’s a never-ending loop. If you’re still in doubt, you should read about Anna Nicole Smith, Jimi Hendrix, and Marilyn Monroe.
- A big income will help you find love
Deep thinkers look beyond appearance. They are more interested in the values people hold rather than how they look or how rich they are. There’s no doubt that wealth can attract masses. It can make people look more attractive and different from the crowd, but money is not something self-dependent people care about. While a deep thinker would focus more on intelligence, depth, and originality, shallow people make life choices based on what they see. Do you want to spend life with someone who is only interested in your money?
- Life is too short to deprive yourself
It’s tempting to buy everything you have always wanted, but if you don’t question your motives before buying, this is a surefire way for financial disaster. Is your life so meaningless that you want to carry financial burdens all the time? If you aren’t saving money today and feeling like spending it just because your time on the planet is limited, it will be difficult to dig out of your financial burden. If you’re spending a lot of money on things you want but don’t necessarily need, you may have to save a lot more money because life is too short and you can’t bring the lost time back.
- The credit score is everything
That’s not how it works. More than a credit score, what matters to lenders is consistency. Lenders want to check your account history so that they can be sure that you have a steady flow of income. The major factors that affect your credit score are your spending habits and how much money you owe. But at the same time, lenders want to know for how long you have been maintaining a good record in terms of account balance, payment history, and your financial activities.
- Renting a home is a waste of money
Homeownership is a life goal of many people and it has many advantages. But if you think that renting a home is like wasting your money, you’re wrong. Renting is sometimes better than owning, here’s why. Renting gives you easy access to better amenities and in terms of financial advantages, renting sets you free. You don’t have to worry much about the maintenance cost, property tax, and down payments. You can choose where you want to live without having to worry about the decreasing value of a property.
Do some independent research so that these common misunderstandings about money won’t stand in the way of achieving your goals. The only way these money misconceptions can stop you is if you start believing them.
Staff Writer; Corey Shaw
Have any Tech Tips? News? Hit up our Tech Guru at; CoreyS@ThyBlackMan.com
