I can assure you that every day you stumble upon tons of money myths that are toxic for your growth.
To remind you, in an earlier video 7 Outspoken Money Truths, I dived deeper into the basic yet hidden truths about money.
But today is the opposite.
And I realize you may have struggled with the money myths that dwell in your mind.
While there are dozens of toxic myths, I’ve selected seven that are necessary to eliminate out of your beliefs.
But first, what is a myth?
Introduction To Money Myths
A dictionary says:
“A widely held but false belief or idea. Or a traditional story.”
You see, you don’t want to fall into this trap of “false belief”.
For that reason,
I created the stage called Control Personal Finances to map out financial education and grow together.
But before we get started,
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Because after that you will receive every week one proven prosperity strategy within the 7 Wealth Stages.
With this in mind,
let’s talk about 7 money myths and limiting beliefs that could confuse the management of your personal finances.
7. High-Paid Job Will Provide The Life You’ve Always Dreamed Of
You know this myth very well, don’t you?
Because when you come from a poor or lower-middle-class family like me, your parents insist on you to climb the corporate ladder and become a c-level executive.
While this may or may not be true in your case, it usually goes the opposite direction.
But what if you ended up really like the CEO of the company or a doctor?
Do you want to know the truth?
What it will really bring you is tons of responsibilities and only one source of income if you don’t invest wisely.
Look, there is nothing wrong with it and I heartily congratulate you if you are in this position that you love.
However, what I want to say here is…
Would you agree?
And it leads me to another money myth…
6. You Need a Lot Of Money To Make Money
While this “traditional false belief” may entirely fool you, you must apply reverse engineering here.
Think of the following example.
What if you already possess plenty of money?
And how did you get it?
The answer is, when you used reverse engineering, you first had to create a way of developing a growth mindset.
So it means, you had to:
- weed out limiting beliefs and establish enabling ones.
- focus on personal strengths and get rid of personal weaknesses.
The second step was to increase your market value.
Simply said to focus on developing elite skills that allow you to earn a higher income than average.
And while earning more, you were forced to learn how to control personal finances and invest in income-producing assets.
At this point, it means money makes you money because money works hard for you.
Would you agree?
Always remember:
But before you sink into building wealth, be aware of the following dangerous money myth…
5. A Once In a Lifetime Investment Opportunity
I’m sure everyone had to go through this money myth, so did I.
You know that shiny syndrome so-called “Lifetime Investment Opportunity” that could come from anywhere.
It could be as a presentation of your friend, the landing page you stumble upon.
Look, these are the shiny objects or opportunities you need to avoid entirely.
The simple recommendation is to scrutinize these 7 critical steps before you invest.
And if you don’t understand it, don’t invest in something that is out of your circle of competence.
Listen,
Does this make sense to you?
Another reason is, unfortunately, your parents or relatives will always fool your head with the following money myth.
4. Your Best Lifetime Safest Investment Is Your Primary Home
Tell me, how many times have you heard it from your parents or relatives?
But pause here a while and think about it.
How could home be your best and safest investment?
The truth is, it provides:
- a shelter where you sleep,
- having a bath,
- a kitchen to cook and eat,
- and maybe a place where you raise your family.
But it doesn’t pay you anything.
Because you pay:
- maintenance,
- insurance,
- utilities,
- it takes money out of your pocket.
In truth, it may appreciate its value over time, but usually, it’s not enough to cover all those expenses you’ve had to pay.
In other words, your home is not an income-producing asset and there is no cash flow (unless, you use a house hacking, live-in-then-rent or live-in flip strategy).
Would you agree?
Certainly, I realize there are many discussions about it.
Because after that, your assets may pay for your home, which you will buy later.
3. Never Ever Borrow Money Because All Debt Is Bad
First, you must understand, and I have to emphasize immediately that consumer debt is bad.
It means, don’t borrow money to impress your neighbor with the latest version of LED TV or with a fancy LV suit – you know what I’m talking about.
And I’m sure you’ve also heard money myths that credit cards are evil and you should never use them.
But that’s not the truth.
You must have credit cards but repay them every month on time.
Because this way you build a reputation with banks and they will be willing to lend you money in the future.
It simply means you must control your personal finances.
So how can you do it?
A quick tip right off the bat.
- First, learn the power of leverage.
- Second, understand how much debt you can use to finance your income-producing assets.
- Third, pick the right deal and do your math thoroughly.
Now, let’s talk about another one…
2. Cash Is King
This money myth might be very contradictory.
Why?
Because people’s opinions vary significantly.
Some people say:
Cash is king.
Or some say:
Cash is trash.
But while studying wealthy people, I found that…
On the other hand,
So a good strategy is to have at least a 3-6month emergency fund in cash to protect yourself against unpredictable time.
And the rest should be invested in assets you understand, but the best in monthly income-producing assets.
- Either way, what’s your opinion about it?
Write a comment below 😉
And lastly…
1. Financial Planning And Managing Personal Finances Is Complicated
The last money myth is undoubtedly complex.
Because it compresses many limiting beliefs that your brain is constantly holding you within your comfort zone.
So, if you hear from others or you say any of the following additional seven most common money myths, it may be time to change it.
Now, when you look at this list, isn’t it depressing?
Listen, stop making excuses, and create a plan of your financial responsibility, and move forward instead.
Because financial planning and controlling personal finances are uncomplicated, and I talk about it in the video 7 Outspoken Money Truths.
Are You Ready To Get Rid Of These 7 Money Myths?
To conclude this video,
you have to realize that any money myths are toxic in your mind.
And you have to get rid of them to take full responsibility for your personal finances and thrive only on your millionaire mind.
If you should remember just one thing, get this.
Because when you unlearn these critical money myths that fool your personal finances, you will only prosper.
Would you agree?
Now, leave us a comment below about money myths you have come across in your life.
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Thanks for reading or watching and I will see you next week.
