5 Most Common Misconceptions About Money

Nowadays, money seems to be most people’s worries, but why exactly do you think so? They say money makes the world go round right? Or does it? Money does play a big role in a person’s life. That is why knowing how to manage your expenses is extremely important, especially if you’re not from a rich family who gets money without having to do any work at all. People tend to do a lot of mistakes when it comes to their money, and that is one of the major reasons why they struggle. Here are some of the most common misconceptions about money.

#1 MONEY IS ALL I NEED TO BE HAPPY

Most people think that money is the only thing they need in order for them to be happy. But based on some famous people’s experiences, it is actually not at all true. Just look at Marilyn Monroe, Kurt Cobain, Amy Winehouse, and every other celebrity who had tons of money, and yet they all succumbed to drugs because they were obviously not happy with their respective lives. Happiness comes in all forms, you can be happy just by having family and friends, you can be happy with simply loving your job, you can be happy just because you choose to be happy.

Happiness comes in all forms. You can be happy just by having family and friends, you can be happy with simply loving your job, you can be happy just because you choose to be happy. Happiness doesn’t have to involve having money or things that can be bought with money, because at the end of the day, money is just something you could use as a payment, and there are tons of things that cannot be bought with money.

#2 SHOP NOW, SAVE LATER

Shopping can really be a fun, especially if you have money to spend or if you have those credit cards that are just simply waiting to be swiped. However, you do realize, that in every single purchase you make, the money you lose in an instant. The most common mistake people make is that they spend before they save. The ideal thing to do when you just got your paycheck is to pay the bills, save some, then spend the rest all you want. That is how it’s supposed to be, not the opposite. Pay your dues first because they are the most important thing, and then once you have done that, save a little. Remember that it doesn’t matter how little you save, as long as you do. Chances are, if you shop before you save, there might be nothing left to save since you might have spent it all.

#3 HAVING A JOB = FINANCIALLY SECURE

This is actually what most people think and they’re all wrong, because it is a fact, that a lot of people spend more than they earn. So even if you get a good amount of salary, at the end of the day, you’ll realize, you have spent most of it, and you’re struggling until the next paycheck comes. Not to mention the fact that you need to save for emergency funds, that’s extremely needed in case something happens.

#4 MORE MONEY, FEWER WORRIES

If you think that rich people don’t worry about anything, then you’re absolutely wrong. It is such a normal trait for people to not be content. People earn money so they could provide for their family, pay their bills, buy whatever they want, and yet, they wouldn’t stop wanting more and more money even if they get extremely rich. Regardless of how much money they’ve got, they still have worries, and that just proves that money definitely does not make the world go round.

#5 BUDGET IS UNNECESSARY

There are some people who think that having a certain budget is completely unnecessary since money is meant to be spent. It is actually a fact that money is indeed meant to be spent, however, it should be spent for the right reasons at the right time. Without a budget, you could simply go crazy and buy everything you want, even if it should be the things that you need. Without a budget, there is a chance that you are not saving any. Without a budget, you are completely out of control, and at the end of the day, when you have spent it all, you’ll eventually need it for some more significant reasons, and you wouldn’t have any since you don’t have a budget to follow.

Those are just five out of hundreds of misconceptions people have about money. When will a person learn how exactly does money work? It is pretty difficult indeed, but it will be more difficult if you don’t know how to do things the proper way. By simply trying to get a glimpse of what the future may hold, keep in mind that you must be prepared. Money goes around and comes around, don’t waste it on unnecessary