5 myths you shouldn’t believe about money

1. “I don’t earn enough to save”

No matter how much money you make, you should be saving. If you are not able to save, then you are living beyond your means. When you get a paycheck, pay bills, then yourself by putting it into savings. The rest will be your flexible spending money.

2. “You have to be rich to invest”

If you truly believe this, then what you are really saying is that you don’t know where to start. Anyone with any income can invest. It is one of the best ways to grow your wealth. There are a ton resources out there to help you start out as well as financial professionals who can help you create an investment plan.

3. “Buying a home is better than renting”

This isn’t exactly a myth, but it isn’t true for everyone. In some cases, owning a home can be a good investment but that depends on the potential owner and where they are in life. Renting is often a better option for those seeking both personal and financial flexibility. Those who are young or just starting out in a new career should stick to renting.

4. “Two incomes are better than one”

Having two sources of income sounds ideal but it often tempts people into spending more. If you live in a household that has two incomes and can live comfortable off of one, then put the other right into savings.

5. “Those who have a lot of things are wealthy”

Material wealth does not accurately reflect ones’ current financial status. You could head out right now, buy a house, a new car, a dozen suits and a new Rolex but that would be enough to put most people well into debt. Do not get caught up with material possessions, they may look like wealth, but they will feel like debt.