Top 25 Personal Finance Myths
This is a great article. It’s filled with great links for further reading and it’s organized for different type of area’s. Some of the tips are correlated with a religious point of view.
Here are my favorites:
4. Those with obvious material wealth must be rich.
Experience suggests we humans get jealous or resentful for so many reasons, and witnessing someone’s material wealth is often one of them. But don’t be so sure that the neighbor with all the cool ATVs, skidoos, swimming pool, and latest car is actually wealthy (has liquid assets), or even happy. He/She could be deep in debt to maintain the facade.
5. Money makes you happy. Money makes you unhappy.
Well which is it? Money does not have the power in and of itself to make you happy or unhappy. There are happy poor people and miserable rich people. More money does help with the bills, provided you know how to manage your wealth. But people with more money can also spend more than necessary and actually end up with less.
7. Becoming rich is hard work.
It can be easier than you’ve been told. Dr. Marsha Sinetar’s book Do What You Love, The Money Will Follow is one of the best guides for an organic approach to wealth. It also does not have to be linearly dependent on your earnings. It does not mean you don’t have to work hard and smart at it at first, but it doesn’t have to be “hard” in the sense that it’s not enjoyable. And eventually, it gets easier to build your wealth — once you’ve made your mistakes.
9. Earning lots of money makes you rich.
Only if you actually save and invest it. If you spend it all, like some high-earning individuals, then you are not rich. Wealth is defined by liquid assets and investments, not how much you earn from a job. In fact, people who earn more money but have no plan for the so-called disposable income end up doing just that — disposing incoming. Some do it out of guilt of having “more than necessary”, others because they feel they owe it to themselves to “have something nice”, and still others to “keep up with the Joneses”.
10. Pinching pennies is the way to wealth.
Hardly. What this really does is set up an emotional enivronment of lack, causing you to miss out on opportunities to gain wealth because you become focused on every little penny. In fact, penny-pinching is actually one common catalyst of divorce.