Common Money Beliefs That Do More Harm Than Good

Common money beliefs that do more harm than good

Most people follow certain concepts and ideas when they are talking about or handling money. Common and practical financial beliefs include the importance of savings, responsible spending and keeping emergency funds.

However, there are certain beliefs that can make it very difficult for a person to succeed financially in life. Carefully take note of some of these ideas that can hinder your financial success so that you can avoid them.

Money makes people happy

The Wrong Idea: Most people believe that money is the key to happiness. They go to college picking the degree that they believe will give them the most income. However, this mindset only proves to be more stressful as they are only motivated by the big bucks and do not necessarily enjoy the job.

While having loads of money certainly has tons of benefits, many people mistake equating a very nice bank statement with the true meaning of happiness. It is not true that money can give you a happy life that is full of substance.

The Right Idea: Instead of looking for happiness in fat paychecks, try to spend more time with family and friends. Although these relationships are hard to maintain, it is definitely a big factor in a person’s happiness.

A meaningful and fulfilling job, not necessarily one that pays really well, can also keep your spirits high. Try to look for happiness first instead of going after the money right away. After all, what will you do once you have bought everything money can buy?

Working hard will lead to great success

The Wrong Idea: Many employees work really hard in hopes that their superiors will notice and give them a raise or promotion. As a result, they spend years slaving away in a company that fails to recognize every loyal individual’s hard work.

By the time they realize that the promotion they dream of may never come, it is already too late. It is a popular myth that hard work alone can help you succeed in the corporate world. Sadly, that is not the truth.

The Right Idea: You have to accept the fact that hard work alone will not help you get what you want. There are just too many employees trying to get the same promotions and raises as you are. Over the years, the workforce has just been expanding and therefore, getting more competitive.

Be bold and unique with your ideas so that maybe your boss will notice you. Be vocal and learn to criticize if it means that it can help lead your team and company to success. Silently doing a great job alone at your desk the whole day will not help you become more noticed. It is the employees who take the initiative to come up with special ideas that can really succeed in a company.

Employees that do not make a lot cannot save money

The Wrong Idea: Remember what I said earlier about saving money is a common and practical financial concept? Well, some people really just do not get it. They believe that saving money is only for people who make 5-figures or more.

They think that because they earn significantly less than those who are better off, they do do not have the capability to put some money in the bank for the future. The more money you spend on useless things, the less money you put in the bank account is more trouble in the future.

The Right Idea: The thing about saving is that you really need to start early so that you are better prepared. You do not need to quickly deposit large sums of money in your bank account right away; you can start by just putting small increments every now and then.

The more you save, the more you acquire the discipline to keep saving money. Also remember that when you put the money in your bank account, it should stay there if you intend to keep the money as savings. This is why some people separate their savings from their usual bank accounts so that they do not touch their savings.

It is way too risky to invest your money in something

The Wrong Idea: Now, when we talk about investing in something, there will definitely always be some risk involved. Everyone would be investing in everything if there risk as not a factor in financial investments.

Some people believe that having their money locked up in the bank safe is the best way to accumulate money; some of them even believe that their savings account interest is enough to keep them financially stable for life. If you do not invest in something and just let your money sit around, you could be missing out on valuable financial opportunities.

The Right Idea: It is not true that investing money is a big financial mistake. Many people have gotten rich by taking calculated risks and going for it.

The trick is to know what to invest in and when the right time to invest is. People spend a lot of money on risk assessments and financial advisers that can help them make the right choices and avoid investments that are way too risky.

If you see an opportunity, start by doing some research before investing. This is the best way to avoid unnecessary risks and to have good returns on your investment.