Advertising
Advertising

Top 25 Personal Finance Myths

Top 25 Personal Finance Myths

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]

Advertising

Advertising

More by this author

Leon Ho

Founder of Lifehack

Book summary: A Technique for Producing Ideas Finding Your Inside Time 10 Ways to Extend Laptop Battery Life Bob Parsons on His 16 Rules for Survival Free note taking templates and techniques

Trending in Lifehack

1 The Lifehack Show Episode 8: On Personal Success 2 How to Stop Procrastinating: 11 Practical Ways for Procrastinators 3 The Lifehack Show Episode 6: On Friendship and Belonging 4 Why Do I Procrastinate? 5 Root Causes And How To Tackle Them 5 The Power of Tapping into Your Hidden Creativity

Read Next

Advertising
Advertising
Advertising

Last Updated on September 22, 2019

The Lifehack Show Episode 8: On Personal Success

The Lifehack Show Episode 8: On Personal Success
In this episode of The Lifehack Show, we interview Robert Glazer, who is the founder and CEO of Acceleration Partners, and author of the book Elevate: Push Beyond Your Limits and Unlock Success in Yourself and Others.

Robert shares with us how capacity building can radically improve your life and how his new book acts as a guide to getting started.

    Robert Glazer

    Episode 8: On Personal Success

    Also available on Apple Podcasts 

    Featured photo credit: Austin Ban via unsplash.com

    Read Next