Growing up we were all given different and often contradicting advice about money. For many it was a topic that was off limits and would make others feel uncomfortable. Others were open to discussion, but told wrong or misleading guidance. Times have changed and the path to financial success is going to be a different one than your parents faced.
Financial Intelligence has become a minor thought. The idea of living in luxury flaunting off wealth has become the new normal. We are influenced by what we see on TV and instantly want that life. These ideas of grandeur cloud our judgment and often prevent us from actually succeeding.
Many grew up being told to find a 9 to 5, invest in a 401k or IRA, and then retire by age 65. That worked for the previous generations but times have changed. We can no longer just sit idly by thinking a 401k will last through retirement. Interest rates are ridiculously low and the way we invest has evolved.
35% of Americans are Freelancers, which means the idea of a traditional 9 to 5 is becoming less common. Budgeting for unpredictable income and unstable hours pushes the idea of retirement to the back of your mind. People focus more on getting through the day than their future.
Below are 7 lies about money that could ruin your financial future and set you up for failure.
Money Buys Happiness
We like to tell ourselves that if we had more money our life would be all unicorns and butterflies. There is this idea that money will bring about more happiness in our lives. But this opens up a whole new can of worms. How much money would it really take to make you happy? You get a million dollars, now what? You want more, right?
It turns into a never-ending cycle of greed and obsession with growing that number. Instead you should look at money as the outlet to help you find happiness. My wife and I had this discussion the other day. Money can’t buy you happiness, but it can get rid of a lot of stress and anxiety.
You should use money to create a stable environment for you and your family. Any purchases should be made to create new memories. It shouldn’t be looked at as a number, but as a means of providing a happier life, through smart investing, budgeting and experiences.
You Need Debt A Leverage To Get Ahead
Growing up we were told we need to go through the bank to purchase a house. We need to take on debt to afford things in our life like the house or a new car. Any big purchases or milestones in your life can only be achieved through the bank. Taking on loans to move to the next stage of our life is the only way. That’s according to the old days.
Now there are so many more options available to us. Acquiring a car is totally doable without the helping hands of a bank. You don’t need the newest model. Also, the idea of car payments can be a thing of the past. Saving up for your next car can be all cash if you go for an older model and without any of the extra bells and whistles.
Personally, I bought my brother in-law’s old car to avoid getting locked in on another car payment. Also the credit check from the car dealership would have also hurt my chances while I’m currently looking for a new house.
Immoral people always succeed
You ever notice how the rich man in movies is always the villain? The idea of power and money go hand in hand with cruel and immoral behavior. The very thought of being in charge of your own wealth makes you think of a super villain like Dr. Evil, screaming, “ONE BILLION DOLLARS!”
A common nickname going around is stealth wealth. The ones that have money and are well off, but don’t flaunt it like popular YouTubers or Finance Gurus. While those kids are leaning against their new leased car holding a stack of all the cash to their name, there are others quietly building up their fortune while living their best life in a comfortable manner.
Interestingly enough, there are studies that prove the reason many became so successful was based on their integrity and morals. You don’t need to be like the snobby Grinch in town to be wealthy. Just think of the movie, It’s a Wonderful Life when George Bailey becomes the richest man in town by dedicating his life to helping the town.
You don’t need a plan for your money
This is easily the worst thing you can follow. Going into life blind is a terrible decision and can be detrimental to your finances. Not having a plan or a budget for your money can lead to terrible choices and being left destitute.
You need to properly plan where all your money is going. At least having an idea of what you’re spending and setting up financial goals can get you pointed in the right direction. Having no plan is just awful and making me cringe while writing this.
Also, just because you set aside money into your 401k every month doesn’t mean you are set for the year. There is so much more that needs to be done to set yourself up for financial success. Emergency funds and savings accounts are a good foundation to start.
You don’t need to start saving or investing at an early age
This one makes me feel guilty. I wish I started at least gaining more financial intelligence at an early age. Starting my investment portfolio 10 years earlier would have put me in such a better place. The difference between starting at 22 and 32 can mean a huge difference.
If you invest $500 a month every month until you retire in 45 years, you would accrue a total of $1,834,510 at 7% interest. If you start 10 years later, you would only reach $887,480. That’s almost a million dollar difference! Starting earlier means ending up with more money and providing a better future. If you are starting late, that doesn’t mean you should give up. I would recommend trying to invest more each month to catch up. I wrote a blog post on this topic here.
This is was just a rough breakdown and excludes many factors like the economic climate and what you’re investing in, but you get the general idea. Investing early = good.
Having expensive things means you’re successful
I touched on this earlier in the post. You see some of your favorite Youtubers or TikTokers flaunting expensive things in their videos. Huge mansions, nice cars and a business that seems like it’s just made of money. That type of lifestyle has become a common goal for many, despite it being total nonsense.
Many of these people fake it for the camera. They sell dirty online courses, pretend to own several luxury cars and apparently know the secret to becoming rich at the ripe age of 18. Must be nice.
Purchasing only things that bring you true happiness or grant you better experiences in life are the way to go. You don’t need a Lambo to be happy. Sure you would think you look good, but that feeling will diminish after a few weeks or when the latest model gets released. Going down that path will lead you to never being satisfied.
Blaming Others
Some are stuck in that dark well of debt and can’t get out. They struggle financially month after month and can only blame others for their situation. They have thoughts like, “If only my parents taught me better” or “if only I read Mister Budget’s blog sooner”. Unfortunately, you put yourself in that situation.
Sounds harsh, I’m sorry don’t close your browser, but it’s truth. I was in a similar situation, stuck in debt and decided to just ignore it and pretend those monthly payments were just a constant monthly expense. I could only move forward until I decided to hold myself accountable. I created a budget that worked for me, cut out unnecessary expenses and set my eyes on goals I wanted to attain.
Stopping the blame game will make you focus on yourself and lift the veil on the financial situation you’re in. The sooner you come to reality the sooner you can fix it.
There are so many more lies we were told about finances. My main regret was not learning proper personal finance growing up or in school. But it’s never too late to continue learning and build a future I’m proud of.
