5 Big Money Myths Holding You Back

Are you struggling on your journey to financial independence?  Could your unconscious beliefs about money be holding you back from achieving the life of your dreams?  Everyone wants to be financially secure but these 5 money myths could be stopping you from achieving the life you've always wanted.

Having a Good Money Mindset

Before you can begin on your journey to building financial security you need to make sure you got your mind right!  There’s a reason that people with the poverty mentality stay poor and I’m thinking, since you’re reading this article, you want to steer clear of that. 

Having a good, positive money mindset will help you remain optimistic when it comes to your finances and the world around you.  It can help you finally get rid of your debt, be able to fully fund your child's education, and save a comfortable nest egg for yourself in your later years.

So how do you foster a good money mindset? First, you've gotta take it to the basics and that means clearing out your past!

Past Perceptions

You might not realize this but a lot of your beliefs about money are not your own.  They come from your family, friends, and your surrounding environment.  

They are the things you've picked up from your childhood and may have buried so deep that it has become an inherent truth.  It has probably become something we base our life decisions on unconsciously because that's just the way things are. 

So I just wanted to take some time to help you unpack your past and move on. Because until you do, you will just keep spinning your wheels in the ditch of the past.  

Let's take a look at some common misperceptions that people have about money.

Money Myth #1 - It takes money to make money.

Now this is a big one for most of you and it was a big one for me.  Turning on the TV, you hear nothing but how this millionaire made a ton of money in real estate or how some rich kid, using mommy and daddy’s money, made hundreds of thousands in the stock market.  

Hearing this, of course you can’t help but to think…mm hmm the rich getting richer.  Or “Well, if I had that kind of money, I could make millions too.” 

But I am here to tell you that this is, thankfully, not the case.  With a little bit of ingenuity and a wee bit of elbow grease, you can make something from nothing. Plus, there are so many options available where you can make money without actually spending your own.  

You can buy stocks on option, you can wholesale real estate deals, you can get private investors for your business or real estate deals, and so much more. 

SO there Ma, money does grow on trees! 

All jokes aside, the most important thing to remember is you don’t necessarily need money to make money.  Not only are there plenty of people who will lend you money to invest, there are ways to invest where you won't have to put any money on the table.

Money Myth #2 - Rich people are only rich because they have taken advantage of the poor.

I can relate to this one myself quite a bit and it is something that is a prevalent belief among the poor.  Having grown up in a poor, single mother household, this is something you witness on a regular basis.  Car companies charging poor people more, higher interest rates on homes purchased in Black and Brown communities.  And so this belief can become an absolute truth.

While there is some fact to this belief, it is not true of everyone.  There are plenty of people making money the good old-fashioned honest way by providing much needed services and products to the people who need them. 

If we continue to think negatively of rich people, not only are we shunning the very people who could help us on our wealth-building journey but, because of that belief, we may not even begin the journey.  

Why?  Simply because we consider ourselves to be good people.  And good people don't take advantage of others.  Consequently, good people can't be rich, right? 

Well I’m here to say, you don’t have to rip people off just to make a buck.  If you can provide value to people, the money will come, and your conscious and your wallet will thank you for it.

Money Myth #3 - Money can’t buy you happiness.

Now this right here is a classic.  That age old mantra that parents drill into their children’s heads so that they don’t chase money for having money’s sake.  While they are not wrong, and money can’t bring you happiness ( especially, if you are not in a state to receive it), we must be careful not to take this belief so far that we begin to devalue the importance of money.  

Money is integral to life, as we know it.  We cannot survive without it.  And while money may not be able to buy you happiness, it can buy you peace of mind and that, I assure you, makes all the difference!

Besides, there is one thing that is almost guaranteed.  If you make less than the amount of money you need for your necessities (i.e. food, shelter, etc.), you will be unhappy.  

Update:  A recent study by a researcher at the Wharton school found that, contrary to popular belief, "all measures of well being increased with income".

What does this mean?  Well, actually, it would seem that yes... money can buy you happiness. : )

Money Myth #4 - Anyone who wants a lot of money is superficial.

In the society we live in, we tend to paint people who want money very negatively.  You know who I’m talking about.  Those money-grubbers, gold diggers, Kardashians…ok I’m kidding about the Kardashians… kinda.  

The point is we have been brainwashed to believe that we shouldn’t go after money.  And that if we do, it makes us a bad person or someone who is very shallow.

Of course, I am not for chasing money for all the wrong reasons: trying to build your self-confidence, trying to make yourself happy, or trying to keep up with the Joneses (ahem Kardashians).  But the pursuit of money in and of itself isn’t bad and could in fact be for a great cause.  

Spending more time with your family, building a stable financial future for your children, donating to charity are all causes worth pursing money for.  So its time to kick this old worn-out belief to the curb and go get your money honey!

Money Myth #5 - I don’t need money.

This is one that I am very guilty of.  It is a sister, brother, uncle, cousin (one of them relatives) of the “Money can’t buy you happiness” belief.  Because we "know" that money can’t buy us happiness, we shift our focus to other things that will, hopefully, make us happy. 

We tell ourselves that we don’t really need money.  And in doing so, we settle for meager wages or give our money away to family and friends because meh I don’t really need it.  Besides, they could use the help.  

However, by giving away your money and/or not focusing on growing your income, you are setting yourself up for financial disaster in the future. 

There will come a time when you need more money than you make, when a family member needs your help to pay for an expensive medical procedure.  And if you have spent all your money earning years living on a so-so salary and giving money away, you will find yourself up that proverbial creek. 

Remember you DO need money for yourself, your health, and your peace of mind.  So go out there and get it!  Don’t let this or any other limiting belief stand in your way.

So what do you think? Any of these beliefs ring true for you?  Are there other beliefs that are holding you back? Let me know in the comments below!