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3 Scary Misconceptions About Money

3 Scary Misconceptions About Money

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    It’s strange that for a society that’s so focused on making money and owning assets, we have some pretty unusual and downright scary approaches to the stuff and how it comes into our possession. Money doesn’t grow on trees, but we give our children and ourselves the idea that it’s nearly unattainable to make enough of it to live the way we want. Here are three of the common misconceptions that our society taught me that my own experiences in business have shattered.

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    It Takes Money to Make Money

    Having money can make it easier to make more money, properly utilized. If not for that fact, venture capital wouldn’t be a big industry. However, if you don’t have money, it doesn’t mean you can’t make any. Plenty of big earners today started off bootstrapping. I bootstrapped my business and it worked.

    Perhaps it’s more convenient to make money when you’ve got money but in no way is it a prerequisite. You just need to put in some effort, some brains and be good at what you do.

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    Personally, I’m of the opposite opinion: if you can acquire funding that you need to pay back later, you’re not in the best position. The best position is to bootstrap your operation and build it up from small but affordable beginnings. You don’t want to be owing anything to anyone at any point; perhaps the “it’s cool to get into debt even if you don’t really have to” myth should be shattered in another article!

    Evidently if you want to open a retail business you’ll need funding, but there are plenty of business plans that can be thought up and executed without the need for capital or loans, which means the old saying that it takes money to make money is not true.

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    Time and Money are Proportionally Related

    This is a very common one. Because the industrial age and the model of employment it brought about is based on a proportional relationship between time and money we tend to associate that relationship with money, rather than with employment.

    So let’s get that clear: the relationship between time and money is imposed by employment, not the idea of money itself.

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    If you’re clever with your business plan, you can create something that makes money based on other things, like product sales. Look at online membership training sites as an example — if you can find 100 customers for a $100 a month program you’ve made $10,000 (from which you subtract your marketing and hosting expenses, among any others). I’m not insinuating it is easy to make $10,000 a month but I am saying that your income doesn’t have to be proportional to your time investment.

    Money is the Root of Evil

    This old proverb is a pet peeve of mine because it and the attitudes it engenders are the seeds of what make people averse to making money. Seeing money as some kind of enemy, or something that is difficult to work with, is like setting yourself up not to make any. Money is a tool like any other and these emotional connotations do not assist in the acquisition or use of that tool.

    Once you begin to see it for what it is, your business decisions can be based in reality and have a level of objectivity associated with them. Many people make stupid business decisions because they have developed certain mindsets regarding cash and these need to be put to the back of your mind. Fears about losing money, or the idea that money is evil, simply don’t help anyone.

    Change Your Mind

    If you’ve fallen prey to these misconceptions, it isn’t too late to change your mind. It can be hard to escape from old mindsets and habits imposed on you by the culture you live in, but that doesn’t make it impossible. I don’t subscribe to the “it’s only worth doing if it’s difficult” mindset but in this case, the difficult is certainly worth doing!

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    Published on July 4, 2018

    Top 10 Recommendations on Money Management Apps

    Top 10 Recommendations on Money Management Apps

    Don’t want to overspend your budget, swipe your credit card too many times, and feel like a financial mess? Instead of beating yourself up for the bad financial decisions you’ve ever made, create a new plan!

    The solution is simple, save more and spend less. But, we all know it’s easier said than done.

    One problem is finding quality apps that save you time and money, and aren’t just hype.

    Luckily, there’re many great money management apps available at your fingertips. Here are 10 reliable money management apps that can help you save money, and crush debt.

    1. Personal Capital

      When was the last time you’ve tracked your net worth? Probably months ago or maybe never. Personal Capital allows you to easily track your net worth and plan for retirement.

      Here are some of its main features:

      • Sync many investment accounts, and expenses (mortgage, credit cards, etc.) in one place
      • Discover hidden fees and how much they’re affecting your retirement plan
      • Wealth management for investors requiring a long-term strategy

      With Personal you’re free to track your expenses and net worth.

      Available for: iOS and Android

      2. Mint

        If your smartphone could only install a few apps, Mint would be one of them. Why? Because Mint tracks all your balances and bills in one place.

        Here are some of its main features:

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        • Effortlessly track all your bills and balances in one dashboard
        • Categorized expenses to understand where you spend your money
        • Uncover hidden fees, and determine your investment style with sophisticated retirement tools.

        Feel at ease with managing your money by a reputable company that isn’t going anywhere.

        Available for: iOS and Android

        3. YNAB

          Everyone needs a budget, there’s no way around it. YNAB (You Need A Budget) is an easy to use app that will change the way you think about money. Their motto is to “give every dollar a job”, and you’ll quickly discover why.

          Here are some of its main features:

          • Easily sync all bank accounts in one place
          • Visually see your debt paying progress with eye-catching charts and notifications
          • Customized categories setting saving goals

          The best part about YNAB is the community that comes along with it. You can hop on the YNAB forum to receive support, listen to the YNAB Podcast or stay tuned for their weekly videos.

          Available for: iOS and Android

          4. Wealthfront

            Albert Einstein once said “compound interest is the eight wonder in the world”, and for a very good reason. The problem is, most people are scared or unwilling to learn the basics of investing. This is why Wealthfront is the perfect solution for the hands-off investors.

            Here are some of its main features:

            • Variety of investment account options including IRA, Roth IRA, and more
            • Your portfolio composed of 7 different asset classes
            • Automatically rebalanced portfolio
            • Daily tax loss harvesting

            Wealthfront is perfect for people requiring investment guidance, or prefer a hands-off solution.

            Available for: iOS and Android

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            5. Clarity Money

              If you’re staying on top of your budget but want to take your finances to the next level, Clarity Money can help you. Clarity Money helps you stay under budget and build a personalized savings plan.

              Here are some of its main features:

              • Easily cancel subscriptions with one click
              • Synchronize bank accounts fast
              • Transfer money effortlessly between different accounts

              Clarity Money isn’t an app that does it all. But, it does make transferring money and canceling subscriptions fast and efficient.

              Available for: iOS and Android

              6. Acorns

                What if there was a way to quickly gain confidence in investing your money, without too much risk? There is, and Acorns is your solution. With Acorns’s technology, you’re able to make investments as small as $5.

                Here are some of its main features:

                • Automatic contribution option
                • Customized portfolio tailored to your needs
                • Low management fees ranging from $1-$2 per month

                Stop wasting dollars on expensive coffee. Instead, invest them towards a brighter financial future.

                Available for: iOS and Android

                7. Albert

                  Do you budget by only subtracting your expenses from your income? If so, how would you discover any overpayments or extra money you could save? This is where Albert shines, and it does it all free.

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                  Here are some of its main features:

                  • Receive notifications for overpayments, hidden fees, and low balances
                  • An Automatic budget that’s built around your spending and income
                  • Easily track debt and set new financial goals

                  While Albert does offer a paid option, most of its core features are FREE. So, what better option to save?

                  Available for: iOS

                  8. Prism

                    Have you recently forgot to pay a bill because life got in the way? Prism automatically tracks your bills and syncs your bank accounts in one place.

                    Here are some of its main features:

                    • View all your account balances in one glance
                    • Bill due dates are automatically pulled and tracked
                    • Receive early reminders for upcoming bills

                    If your budget is on “fleek” but can’t seem to stay on top of your bills, Prism is your go-to app.

                    Available for: iOS, Android, Windows, Amazon

                    9. Mvelopes

                      Remember hearing about people using envelopes to budget their money? Well, Mvelopes is the new envelope system for this generation. Easily create monthly budgets and track your saving goals.

                      Here are some of its main features:

                      • Connect unlimited bank accounts
                      • Real-time budgeting with auto transaction syncing
                      • Low monthly $4 fee or $40 annual

                      Mvelopes can help you crush debt, save more, and help you stop overspending. With its low monthly fee, it’s worth a try.

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                      Available for: iOS and Android

                      10. Wallaby

                        Most people don’t have time to track their credit card’s changing rewards and interest rates. Because of this, you need help reaping the most of your credit card’s rewards. Wallaby is the app that will help you do just that.

                        Here are some of its main features:

                        • Automatic recommendations for the best credit card to use for each transaction
                        • A friendly user interface, displaying credit cards with their corresponding images
                        • Free to use

                        If you’re using the same credit card to make your purchases, you may be leaving money on the table. Give Wallaby a try if you’re ready to maximize your credit card’s rewards.

                        Available for: iOS and Android

                        Take control of your finances and experience financial freedom

                        Picture yourself staying on budget and saving more money than you’d ever imagined.

                        It took hard work and dedication but you’d finally learned how to manage your money. You have to start taking control of your spending and saving habits.

                        You now have a list of reliable apps that can help you build better money habits, what are you waiting for?

                        Featured photo credit: Pexels via pexels.com

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