Money is a predominant topic on our minds as humans. Almost everything we do is in a way making money – if not for us, for someone else. The clothes we wear, the houses we live in, the food we eat. Aside from standing naked in an open space which no one does, the by-product of everything we do is money. Being such an important part of our lives, there are several misconceptions surrounding money. Highlighted below are five of such misconceptions we must do away with;
You can only invest if you have lots of money
Investment is basically making your money work for you. If you put money in a profitable venture, it yields overtime. Most people assume that before you can invest, you must have lots of money. That is not true. The key trick in investment is finding one that suits your money. Technological advancements have made it even easier to find the kind of investment that works best for you.
More money will make you happier
It takes a while, if not a lifetime for many to realize that is a terrible misconception about money. Sure, money can afford you things that make your life easier and even pleasant, but happiness is a feeling you derive from contentment – by realizing that you have everything you NEED(NOT WANT), you escape the hunt for more. If you are content with what you have, anything more becomes a blessing. If not, you might eventually get more money but spend your entire life unhappy and chasing more and more. Truth is, even if you were given all the money in the world, it would take something deeper to make you happy.
All Millionaires live a flashy lifestyle
In an attempt to appear rich, people spend money they don’t have on designer clothes, luxurious cars and other fancy stuff to create the impression. The misconception here is that it is the way rich people live. True millionaires do not try to impress. Yes, they may own some expensive property because they can genuinely afford it, but they do not go about flashing money in people’s faces.
Saving is Hard
It is very easy to spend – no two ways about that. Yet saving only becomes hard when you lack discipline. Putting money away only makes you slightly uncomfortable in the moment, but it makes you financially secure in the future. An easy way to cultivate a habit of saving is to save before you spend. Immediately you earn or receive some money, save a portion of it first before you spend the rest.
A high income makes you wealthy
Financial wealth is built from money management. If you learn how to invest your money wisely, you will become wealthy. However, if you earn a high income, yet you spend it as fast as it comes, you will end up with nothing. Often, when people get an increase in salary or start to earn more, they increase their expenditure to match. That is how poor people are built.
