The original post can be found here: Debt Free
In part 1 of this series, we began looking at some of the myths, lies and the terrible financial advice that’s floating around out there. If you haven’t read part 1,I suggest you start here.
When you hear a lie often enough, you start to believe it. And when it comes to money and your finances, blindly following “conventional wisdom” without stopping to think for yourself can keep you from ever getting ahead. But confronting those lies and beginning to think for yourself will go a long way toward setting you on the path to winning with money.
To help you in your quest for truth, I want to expose:
6. Investing In The Stock Market Is Too Risky
“I don’t want to take any risk. I’d rather just save my money in the bank where it’s safe.”
Why It’s Bogus: Investing in stocks and mutual funds does carry some risk. But so does not investing? The average inflation rate in the U.S. is around 4%. That means that every year, your “safe and secure” cash is worth 4% less than last year. By not investing and growing your money, you face the almost certain risk of losing 4% every year. Besides, investing isn’t nearly as scary as you may think and it doesn’t take a financial genius to do it. You simply need to educate yourself, understand the risks and learn to make wise investments under the guidance of a trustworthy financial advisor.
7. I’m Just Not Good With Numbers, So I Can’t Manage My Money
“My problem is that I’m just no good when it comes to math.”
Why It’s Bogus: The reason you feel inadequate with the numbers is simply that you’re unfamiliar with the process. The math required to balance your budget is nomore than adding and subtracting. The numbers are important. But learning to manage your money is much more about shifting the way you think and modifying your behavior. It’s a lot like weight loss. The math is simple (calories in/calories out). But to be successful, you must learn to control your emotions and change your behavior. And we can all learn to do that.
8. I’m Too Broke To Get Out Of Debt Or Save Money
“I don’t have enough money to pay down my debt or even save. I just can’t get ahead.”
Why It’s Bogus: There are rare and extreme circumstances in which a person really doesn’t have any extra money. But most people have the ability to at least save something. If you rationalize not saving in your current circumstances, you’re likely to rationalize it when your circumstances improve. But the excitement of seeing your debt decrease and your savings increase will help propel you even faster toward your goals. Don’t wait until you’ve got a bunch of extra money lying around to start paying down debt or saving. It’ll never happen!
9. Going to College Is Always Worth the Cost
“Everyone needs to go to college…the investment is always worth the cost.”
Why It’s Bogus: (First of all…save the hate-mail. I already know some will disagree with me here). In today’s world, the cost of a college education is much higher and the payoff is much lower than it used to be. The average college tuition is increasing at a staggering 7% per year. The high cost may be worth the investment. But do your research and consider that it may not be, depending on the profession you’re looking toward. I’ve worked with too many people with $100,000 of student loans, who are now a stay at home mom or decide they don’t want to work in their field of study. Don’t be one of them and don’t blindly follow the lie that college is always worth the cost.
10. Buying Someone Gifts Is the Best Way to Show Your Love
“Buying gifts for people lets them know how much I love them…”
Why It’s Bogus: Do you love your parents…your spouse…your kids…your bff? Is it because they buy you nice gifts? Or is it because of the bond you’ve developed, the time spent, the trust, the respect, the understanding, and the support? We’ve gone crazy with this idea that love equals stuff, and the marketing industry does everything in their power to propagate the lie! If you want to show someone you love them, spend some time with them, write them a hand-written card, give them a call, give them a hug…but don’t believe the myth that that buying a gift, especially an expensive gift, is the best or only way to show your love.
If any of these money lies and myths have been preventing you from living the life you want, 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 3 of “16 Lies We Believe About Money!”
Let us know if we can help you achieve the financial freedom and peace you want!
Yours In Freedom,
***Join the conversation…which of the first 10 lies have you heard or even believed in the past? How did you come to know the truth?