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
More in Bank Stories
Creative Methods To Save Money When Shopping
Shopping for products can be exciting but it can also be a hassle you would rather be without. The introduction of...March 4, 2018
Hollywood Celebrities With Successful Tech Ventures
The tech industry has grown from a niche market to one of the biggest players in the business field. Because it...March 4, 2018
Why American Rappers Make A Lot Of Money
Rappers are known for living a life indulged with all the good things and, quite literally, tubs full of money. With...March 4, 2018
Debt Consolidation 101: 5 Things To Check If You Are Ready For It
Debt consolidation has gained tremendous popularity in the recent years. Banks have been very rigorous on their risk models and it...March 4, 2018
Financial Mistakes You Can Commit In Your 20s And How to Avoid Them
In your 20s it is likely that you are just beginning to adjust to a number of things like starting a...March 4, 2018
Fly First Class For Free With These MAGIC WORDS
Flying all over the world is part of education and exposure but this can be cumbersome for some, who may find...March 4, 2018
YouTube Vegan Celebrity Dead With Cancer
It’s no secret that there’s a constant division of dieters in the health and fitness industry, with the meat lovers who...March 4, 2018
5 Lessons About Life And Money From Chinese Billionaire Jack Ma
With everything that he has gone through and all that he has achieved, Alibaba founder Jack Ma is truly an epitome...March 4, 2018
Here’s How to Apply For A Small Business Loan
Managing a business without adequate finances can be challenging. You will not be able to manage the business appropriately if you...March 4, 2018