Credit Advisor mentions some myths and perceptions could hold you back from being rich. They may set you off to the wrong course. You may have the wrong focus because of them. Take a look their 25 finance myths and positive about how you manage your finance. Here are couple of good ones:
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.
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”.
12. Two incomes are better than one.
This is not always true, as two incomes often tempt or require you to spend more, resulting in less savings. If you do have two incomes in the family and can actually manage on one, save the excess instead of spending. That might feel like a bit of sacrifice, but you could always use the savings for a yearly family vacation. Saving then puts you into the frame of mind of realizing that you do not have to spend to show off luxuries now, bought on credit. Instead, you are paying because you can afford to, later, after your money has collected interest.
Top 25 Personal Finance Myths – [You credit Advisor]
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