The original post can be found here: Debt Free
There are well-dressed foolish ideas, just as there are well-dressed fools. ~ Chamfort, French Playwright
We live in the wealthiest society in the history of the world. But in general, our attitude about money…well…it sucks! I admit, in the past (and sometimes in the present) my attitude about money has been unhealthy and just plain wrong. We’re brainwashed by so many false beliefs and terrible financial advice that it’s hard to know what’s true. Many of the myths sound very smart…even noble…so we never question them. But following them blindly can lead to disappointment and even financial disaster. But there is hope, there is truth, and there is a better way.
To help you begin to distinguish the truth from the lies, I want to expose:
1. I Don’t Need To Do A Budget
“Budgeting is for nerds…it’s a waste of time…things will just work themselves out.”
Why It’s Bogus: Refusing to do a budget is like going on a road trip and refusing to look at a map. You’ll get somewhere…but it’s probably not where you intended. “If you fail to plan, you plan to fail.” A budget isn’t a document that restricts you and constantly tells you “No!” It’s simply YOUR way of telling YOUR money where YOU want it to go.
2. An Emergency Fund is Only For People Who Live In Fear
“An Emergency Fund? That’s so negative…people worry too much.” (And my personal favorite) “If you really trusted God, you wouldn’t need an emergency fund.”
Why It’s Bogus: Do you have auto insurance? Health insurance? Life insurance? Why? Because odds are you will face some kind of emergency at some point in life. An Emergency Fund of 3-6 month’s worth of your living expenses is another form of insurance. According to Money Magazine, 78% of Americans will face a major negative financial event in any given 10-year period. Having an emergency fund turns a crisis into a mere inconvenience.
3. If Only I had More Money, Then I’d Be Happy
“If I had a bigger house, a nicer car, took big vacations and could afford the “finer things in life,” then I’d be happy.
Why It’s Bogus: The “finer things in life” have very little to do with money. Waking up next to your spouse, hugging your kids, time with friends, deep faith in God…these are the finer things and they don’t cost a dime. “But Clint, if I had more money I’d be…” Are you sure? A 2006 Princeton study suggests otherwise: “Once you go beyond a certain level of poverty and well being, having more money doesn’t contribute to increased happiness. People with above-average income are…barely happier than others in moment-to-moment experience, tend to be more tense and do not spend more time in particularly enjoyable activities.” Don’t buy the lie that more money will magically make you happy.
4. Renting A Home is Like Throwing Money Away
“It’s a waste of money to be renting…you need to buy a home.”
Why It’s Bogus: Owning a home is usually a good investment. But when you are neck deep in debt with no savings, buying a home can keep you from ever getting ahead. Renting is almost always less expensive because you avoid things like taxes, maintenance fees and expensive repairs. So until you’re out of debt it may be a good idea to rent. With lower expenses, you’ll have more money to attack your debt and become debt free as fast as possible.
5. The Only Way To Get Rich Is To Lie, Cheat or Steal
“Look at those rich people…what a bunch of crooks.”
Why It’s Bogus: This lie is really just a judgmental excuse made by jealous people who don’t think they could ever become wealthy. But it’s just not true! In Thomas Stanley’s book, “The Millionaire Next Door”, the surveys reveal that the vast majority of America’s millionaires have extreme levels of integrity. They’re honest, ethical, generous people who work hard and make wise financial decisions. Don’t believe this lazy excuse of a lie.
If any of these money myths have been holding you back from living your best life, I want you to know it’s never too late to change course and start achieving your goal of financial freedom and peace!
Stay tuned for part 2 of “16 Lies We Believe About Money!”
Yours In Freedom,
***Join the conversation…what other lies and myths have you heard or believed about money? Share them in the comments section below.