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How many harmful money myths have you heard in your lifetime? 🤔
Whether we're aware of it or not, misconceptions about money management and wealth, in general, can affect our relationship with money on a deeper level. Negative beliefs about money can impact everything from our daily spending habits to our financial goals for the future if left unchecked. Which is why, in this week's blog post, we're debunking the FIVE most common myths out there - and how you can leave them behind once and for all 👋
Read on to discover the money myths that may be causing harm to your wallet (and what you can do about it!):
1) Buying Designer Clothes and Cars Means You've "Made It"
With Instagram influencers and world-famous YouTubers showing off their extravagant wealth on a daily basis, it's easy to believe that reaching this level of wealth means you've officially 'made it'.
However, this is often just a facade, as the fact is more money does not equal good money management skills! Next time you find yourself comparing yourself unfairly with internet stars or even friends who can afford designer clothes and fancy cars, just remember that being 'rich' is more to do with how you spend your money and not what you spend it on.
2) It's Impolite to Talk About Money
Another myth that's negatively impacted many is that money is a taboo subject that shouldn't be talked about.
Again, this couldn't be further from the truth: not only is it healthy to talk about money with our loved ones (or anyone!), it can actually help us in the long run as we feel less alone in our financial struggles and can find solutions to our problems by discussing with others. Being open about money is crucial if we want to make any progress with our financial goals!
3) Pensions Are Only For Old People
If you're under the age of 30, you may be thinking that you don't need to worry about your pension whilst you're young and that it's a problem for future you to deal with when you get there.
Unfortunately, this is another myth that leaves so many people in a less-than-desirable financial situation by the time they need to retire and realise that their state pension isn't quite going to cut it for the lifestyle they're used to!
The fact of the matter is, due to a little thing called 'compound interest', contributions made in the early years of employment can make the biggest difference to your retirement pot for the future.
4) Buying Coffee is Preventing You From Owning Property
We've all heard this money myth often directed at millennials who enjoy a takeaway coffee! The good news is, though, your weekly coffee or avocado on toast is definitely not the guilty culprit stopping you from getting on the property ladder and owning your first home.
According to The Independent, the average person spends £303 per year on coffee, whilst the average price of a house in the UK is now £290,300. The maths doesn't quite add up!
So, next time someone tries to tell you that the reason you can't afford a house is that you keep buying coffee, kindly direct them to this article by LoveMoney on why giving up coffee won't necessarily get you on the property ladder.
5) Money Can't Buy Happiness
The final money myth on our list is the one that's been spread like wildfire throughout generations, yet isn't necessarily true: money doesn't buy happiness.
Although money can't buy happiness outright, it can buy a multitude of things that can elevate our lives and reduce stress: including comfort, security, and the freedom to live life on our terms. All in all, boosting our happiness! And now, according to Forbes, a new study has revealed that more money does buy more happiness - even for the rich.
Heard any other money myths? Join the conversation on our Instagram @ImageNPay and hit the Follow button for more money tips!
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