5 Wrong Beliefs about Money that Can Cost You Financially

5 Wrong Beliefs about Money that Can Cost You Financially

You may not notice it, but both your conscious and unconscious beliefs about money greatly affect your financial status. The things that you have been taught about money as you grew up may be the ones keeping you broke.

They might be the ones keeping you from getting rich; that is why, it is important to stop for a moment and take a look back. Remember, getting rich is not just about what you do; your state of mind also matters.

So check out the 6 beliefs about money that can cost you. If one of these rings a bell, it’s time for a change.

  1. Money is there to be spent.

Views like this are implicitly taught to us by the media, corporations and businesses in order to sell more products. In other words, they capitalize on views like this. However, this means they get rich while you lose and lose more. No matter how good it makes you feel, do not let such a perspective fool you into spending all your earnings on unnecessary and expensive things.

Having views like this makes you more prone to giving in to temptations. The more you give in to your temptations, the less money you save. The less money you save, the lesser is the likelihood of you making it big.

Instead of thinking that money you earn should be spent, why not think that every money you do not spend is a step to getting rich?

  1. I’m just not that good with money.

Beliefs like this mean is not only demotivating; they also imply that you are already giving up before you even tried. What you should know, however, is that skills in money are not innate. They are taught and therefore, can be learned. Maybe you grew up in a home where budgeting and saving are not a thing, but that does not mean you cannot learn to budget and save.

Just continue to put time into researching and reading about proper budgeting, saving, and managing money in general. Make sure to actually apply what you learn, and you can start small if you find it too difficult.

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Start a routine that you can keep, and continue to do it without any excuses. Instead of giving in to temptations, think of the bigger picture and your bigger goal. Buying that bag you saw in the mall would make you happy for a day, but saving and investing everyday would make you happier for a much longer time in the future.

Think that you would have more money to spend in the future if you just be patient for now. If you do these, it is certain that you will improve over time.

  1. Money is not all that

While money is not all that there is in life, it is a necessity we should still be concerned about. It’s not just money. No, it might not be money that can make you achieve that sense of fulfillment, but you need money to provide yourself and your family the daily necessities.

Having this kind of view means you do not take money seriously enough. The thing about making a lot of money though is that you actually have to include money in your top priorities. An artist needs to take her art and practices seriously in order to improve her skill and to make her artworks look better.

If she slacks off and thinks she will just eventually get better over time without doing anything, nothing will happen. It’s quite the same when it comes to building your fortune. You need to actually make it a goal, and you need to work towards it. Money will not just come knocking on your door.

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  1. Rich people are dishonest and greedy.

This is a view of someone who does not actually know how it is to be rich. In other words, these are the words of someone poor. Maybe this was spread by someone who wants to discourage others from being rich. Perhaps whoever said this just wanted to make herself feel better for not having money.

However, not everything that makes you feel good is right and helpful in the end. This belief is one of those things. Whoever started this preposterous humor, as long as you agree with this, you could not be more wrong.

Just like there are mean poor people and good ones, there are also good rich people and mean rich people. Being good does not have anything to do with being rich, and vice versa. And if you do make it big eventually, it is entirely up to you which kind of a rich person you will be.

  1. Money is the root of all evil.

This is among the most common beliefs passed down to us, especially if you come from a religious family or a family used to scarcity. People tend to equate being poor with goodness and being rich with evil.

However, this is all a big mistake; it’s the excessive love of money that is the root of evil. It’s some people who make use of money in the wrong ways and things that are evil, not money itself. Money is incapable of having some sort of morality, so it can neither be good nor evil. It can be a tool or a weapon, but it does not have the capability to choose which among the two it will be.

It is entirely up to the user whether or not it will be used in evil ways. So no, there is nothing wrong with wanting more money.

What is wrong is wanting more and more money even if it means stepping on others’ rights. No, money is not the root of all evil. Greed is.

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Anna V. Haotanto

Anna V. Haotanto

Anna Haotanto is passionate about finance, education, women empowerment and children’s issues. Anna has been featured in CNBC, Forbes, The Straits Times, Business Insider, INC and The Peak Singapore.

She was nominated and selected for FORTUNE Most Powerful Women conference in 2016 (Asia) and 2015 (San Francisco, Next Gen).

Anna has 10 years of experience in the financial sector and is currently a Director in Tera Capital. Her previous work experience includes positions at Citigroup, United Overseas Bank, a regional role in Business Monitor and a boutique private equity firm based in Shanghai. She graduated from Singapore Management University (Finance and Quantitative Finance).
Anna V. Haotanto

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