Myths about Money That You Should Ignore

January 15th, 2007 • Related • Filed Under • by admin

If you’ve ever read the book Rich Dad Poor Dad by Robert Kiyosaki, you know there are a lot of people giving advice about money who really have to right to be doing so. There are misconceptions about money that a lot of people who don’t have anything to show for themselves have and perpetuate. There are a number of myths about money that you just need to throw out the window if you ever want to be financially independent.

Money is evil. Money is not evil, money is a-moral. It is lacking in morals, either good or bad. Money just makes you more of what you are. If you are a giver, you’ll really become a giver if you have money. If you are greedy, you will be very greedy. Money is a tool, you can use it for both good and evil.

Money and Happiness are related. The amount of money in your savings account and your happiness has absolutely nothing to do with each other. Happiness will never happen when an event happens or you have something, happiness is now, it’s a state of mind. If you keep searching for happiness when something happens, you will never find it.

You need to leverage and use other people’s money to become wealthy. This is a thinly disguised endorsement of debt. Nobody wants to be in debt, so why would you go get your self in debt? Most people try to make debt much more complicated than it is. Nobody likes debt, so don’t go into debt! The average millionaire borrows very little money, and you should do the same.

Credit Cards are a Financial Tool. Credit cards do nothing but put you into debt and give you the privilege of paying expenses finance charges.

Gold is a Great Investment. Most people will tell you that Gold is an excellent investment because it has value regardless of where it’s at. If the currency were to fail, you could trade in gold. In reality, gold has averaged barely the rate of inflation, and people do not trade gold when currencies collapse.

Co-signing a loan is no big deal. Never co-sign a loan unless you want to end up paying the bill. The bank knows your friend or family member doesn’t have the money to pay the bill, that’s why they are insisting that you sign for them.

The Government will take care of me when I retire. Both Social Security and Medicare have huge financial problems looming. The government does not have a track record for efficiency and solving problems, so you should not rely on them for your retirement plan.

You have to be smart to be rich. Everyone knows what they need to do to be rich, and that’s work hard and save a lot of money. If you keep doing common sense thing with money over long periods of time, you’ll be come very wealthy. You don’t need to know a lot of complex financial information to become wealthy.

I can’t afford to save money. You can’t afford not to save money. You should pay your self first and worry about expenses and bills after that. You have to save for the future, make it a huge priority.

I should get a new car because it’s reliable. New cars lose half their value in the first two years of ownership. Get a used car and let someone else take the beating.

I need a good credit score to get by in life. You only need a credit score to borrow money. Having a high credit score indicates that you have a lot of debt and have been in debt for a long period of time.