Personal Finance Myths We Need to Ignore

 

Personal Finance Myths we need to ignore

Personal Finance Myths We Need to Ignore

Hello friends it’s the 4th quarter of 2016, and as I get through a tough patch in my life, the blog has suffered without fresh new content. It is hard to find the right balance when you lose a loved one.(Miss you Mom) But I know it’s a part of life and we need to have the strength to move on. Let’s jump back into the topic at hand personal finance myths we need to ignore.

I hear random talks like this all the time and it is unbelievable people still can’t see the big personal finance picture. Why must some of us live with our heads in the sand per say?

If others have done well with money, you can do it to. People of various income levels are doing amazing things, like reaching financial freedom, paying off the mortgage, living a debt free life. These are only a few examples. Let’s not fall victim to the defeatist mentality of some people and please don’t listen to the personal finance myths we need to ignore.

Personal Finance Myths We Need to Ignore

We have all the time in the world to play catch up – Wrong as time is essential with investing and with loved ones. Take the time to do things with immediate family, because when you don’t have the time you’ll regret it. Every year you forgo investing can be compared to throwing money away, simple as that.

Investing is very hard to do – Double wrong, as it is fairly easy. Take the money transfer it to a brokerage account, buy a low cost mutual fund or broad based ETF, consistently send money to it.

I can never find extra money at the end of the month – If the priority is to save and not spend, you will find the margin aka buffer aka discretionary income.

You can’t take it with you when you die – This one is a doozy, and seriously no shit. But guess what, if you didn’t clonk out, you have a better chance at a safer retirement at 60 and if you do go, your family will be financially protected. It’s a win win smarty Mc. smarts.

Money is the root of evil. This is totally false, and it should be put to rest once and for all. I control money and money doesn’t control me. So hence if money is the root of evil, you are saying that you are evil. The actions you take with money only go to show your behavior and how that is a reflection of you.

Seriously I think I am going to start telling people I’m ok I don’t need any of your personal finance myths clouding my brain. There’s one thing I learned in life, we need to stick to our beliefs and rationale when things feel right.

In 25 years we will see who made the right choice for the future. Do you agree with me that having 500K sitting in an account helps a 55 year old man sleep better at night compared to only having 5K? 

I save and invest consistently because it just feels right to me. I am not going to take 3 vacations a year because it feels good and forgo my financial goals. That’s far from my personality, as I value a good life and money balance.

When you take into account these myths above and you can change your attitude towards them, you will feel more at ease. Certain connotations might be difficult for some people to decipher, but in reality it’s not that hard to understand.

A phrase like you can’t take it with when you die in essence is true, but shouldn’t come at a cost where if you reach 60 and suddenly have to work for 15 more years because you spent it all. News Flash after working 40 years straight its a travesty to still be broke.

Financial security can still be found with every action and choice. It all boils down to finding the right balance between life, fun times, and financial responsibility. A myth is a myth, and we all should break free of the imaginary bonds that hold some people in financially stagnant times.

PS – Extra Resource on Myths

Comment if you would like to share personal finance myths we need to ignore?

Rich Uncle EL


Comments

Personal Finance Myths We Need to Ignore17 Comments

  1. Good list of myths. I often heard many say they had time to play catch up when I was in my 20s and even in my 30s. But compounding only works its magic if you give it time! Also, as to investing…low cost index funds…that's it…nothing complicated about it! And I hear many people say they can't afford to save extra money at the end of the money…no no…you can't afford NOT to save. Take it off the top and make saving automatic.
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  2. You touched on it a bit with the not enough money. I have heard people say if I just made more money I could do this or that but when they get that second job or raise they are just as broke as before because they spend it all.
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  3. I really agree with points one and two that you make. These days, there are zero excuses to not trade or invest in stocks. With so many online sites and brokerages that make buying stock easier than ever, not to mention the numerous apps available too, no one can suggest that investing is hard. Similarly, no one can say that they do not have any 'extra' money to invest. With free brokerages out there like Loyal3 and Robinhood to name just a couple, anyone with $10 can buy stock fee free. Everyone has $10. Period. Anyone can slowly build up a dividend income portfolio. Thanks for sharing.
    My recent post Dividend Income Update September 2016

  4. I had an old roommate that use to tell me that he could save for retirement like his dad later in life. His dad is in his 70s still working with no end in sight. I feel bad with the financial wisdom my friend received because it's clear that he will probably be following in his father's footsteps.
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  5. I really like your first myth about having all the time in the world. So many people fall trap to that mentality and never invest in today.

    Another detrimental myth I'd share is "You need money to make money". An excellent time to learn about money and how to invest is when you don't have any. It doesn't cost a thing to read in a public library.

    Sorry to hear about your loss!
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  6. I've generally found the "you can't bring it with you " myth to be unusual. As you said – obviously you can't. However, that is not generally the point. Imagine a scenario in which you could abandon everything to somebody you adore or a cause you have faith in. Wouldn't that be an honorable motivation to spare?

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