Finances (US)

Common money myths busted: 10 myths!

Do you sometimes feel like your money is disappearing from your wallet without knowing where it’s going? You can read on to learn the most common myths busted!

by Victória Lourenço

Published on 04/27/2023

Find out which are the 10 most common myths we busted!

Learn how to deal with money properly. Source: Freepik.
Learn how to deal with money properly. Source: Freepik.

Do you know how to manage your finances in a way that sets you up for success? There can be many common money myths that we’ve busted for you to understand more about it!

Also, we know it can be confusing trying to sort through the conflicting information about money.

Moreover, when it comes to personal finance, there is a lot of misinformation out there, which makes it hard for us all to make the best decisions about our financial health.

Therefore, to help you cut through the noise and focus on the facts, we’ve busted common money myths so that you can better inform your decision-making process when it comes to managing your finances.

So, keep reading to learn the truth behind these popular but false beliefs!

type of trading most profitable

Which type of trading is the most profitable?

Check out the type of trading that is the most profitable and find out if your investor profile fits an efficient strategy of investing.

How does money work?

To store or transact value, or to act as a medium of trade, is what money is all about. Also, what matters is not what is actual or even what is imagined, but rather what people feel has value.

In addition, money is useful since it may be used for buying things and putting money away.

Also, so that it may be utilized, people agree to give money a certain value. Moreover, acceptance of a common currency or accounting system is essential for money to be of any use at all.

Therefore, money is founded on social agreement. Hence the actual currency used might be anything. It might exist in the physical world or be entirely virtual.

However, although there is great diversity in the types of currencies, they all have common features.

Here are 10 common money myths busted!

Now that you’ve learned more about how money works, you need to know the most common myths that we busted! Therefore, read our list below of the most common money myths!

Money makes you happy

Don't fall for these myths about money. Source: Freepik.
Don’t fall for these myths about money. Source: Freepik.

Many people think that they will feel better about themselves if they have more money in the bank. However, it won’t make you completely content in other areas of life.

Also, the most common misconception about financial success is the idea that more money equals more happiness. The truth is that the path to your greatest joy is self-discovery.

It is not good to have credit cards

Having a heavy debt load is never a good situation. But not all debt stunts development.

Moreover, making little, regular purchases on a credit card can be beneficial in a number of ways.

Therefore, this is the case if your monthly payments are at least the minimum needed amount, ideally the entire amount.

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Saving money is not easy

With as little as $10 per month, you may begin a regular savings plan. Also, you might be in a better position to build up a sizable emergency fund if you do this.

Therefore, set up a monthly direct deposit into an easy-access savings account, and you won’t have to worry about forgetting to save.

Hopefully, you will be able to abandon your old habits of not saving any money. Also, you’ll be able to start saving even more over time!

If I save with food delivery, it will be a game-changer

There’s an old adage that says eating out once a week is terrible for your retirement fund.

However, people don’t need to take extreme methods to accomplish their aims.

Moreover, you can save money while still finding ways to have fun. Also, you have the right to use your money for leisure activities and more!

However, you’ll need to make a plan to do this in a healthy way! Moreover, the next step is to prioritize your spending according to how much extra money you have.

You can’t invest if you’re not rich

You must learn how to save and invest money from the start of your adult life. Source: Freepik.
You must learn how to save and invest money from the start of your adult life. Source: Freepik.

We’ve all heard the myths that investing is just for the rich or that we don’t have enough money to start. However, you can start investing with just $10 a month!

Moreover, the best part about most investment vehicles is the low minimum commitment required to get started.

Therefore, the high rates of return they provide make them an obvious choice above simple savings.

There is no need for emergency savings

The worst myth is that individuals don’t need any extra savings for unexpected events.

Also, you shouldn’t consider money from these sources for long-term goals like retirement or large purchases like a car, house, or vacation.

Instead, this is an emergency savings account for situations like keeping up with monthly bills after your boss fires you.

This way, you’ll be able always to have money in case you get fired, or there is an emergency in your family or a medical emergency in your life.

You can’t get a mortgage if you’re autonomous

The self-employed can choose from a wide variety of mortgage options. All right, so the application process for a mortgage is different for those who are really in the workforce currently.

However, lenders are becoming more tolerant, and they accept a year’s worth of salary as collateral for a mortgage by some borrowers.

I’m too old to start investing

You can start whenever you choose. You can always find a way to move ahead when you dedicate yourself to improving your financial situation.

Moreover, believing in your own ability to complete the work at hand is the first step toward achieving success.

Always keep track of the market to invest

Taking out a loan to invest in a speculative asset like Bitcoin or shares is a dangerous game to play.

Moreover, taking out loans to invest is not a smart idea if you are inexperienced. Therefore, you’ll need to do some research regarding how investments work before you start.

You need a new car

There are a few folks who, for whatever reason, can’t stomach driving anything except a brand-new automobile.

Maybe these folks are just fascinated with cutting-edge gadgets. They probably also don’t want to deal with the potential hassle of fixing up an older vehicle.

Also, a new automobile may seem like a good investment. However, it’s actually a depreciating asset.

Therefore, when you drive off in a brand-new automobile, you can immediately lose about 5-10% of its value.

Becoming a millionaire with day trading: is it possible or is it a money myth?

Many people dream about becoming a millionaire. But there is no one-size-fits-all when it comes to finances. So the thing that works for other people might not work for you.

But what about day trading? It is really possible to become a millionaire by doing it?

We’ve done deep research on this topic, and you can learn more about day trading and earning possibilities by reading the following post.

millionaire by day trading

Can you be a millionaire by day trading? 9 myths a

Have you ever wondered if you could be a millionaire by day trading? Learn 9 myths and facts about investing in this market to decide if it would be a good idea for you!

About the author

Victória Lourenço

Victória Lourenço is part of the finance writer team for The Mister Finance website. She is a translator and copywriter, having worked on finance topics for over four years. She has a goal to keep studying finances to help people learn more about how to use their credit cards, make loans, and use other money-related products in a way that they can find a more meaningful and healthy financial life!

Reviewed by

Aline Barbosa

Senior Editor

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