FIVE COMMON BELIEFS ABOUT MONEY THAT JUST AREN’T TRUE
It’s not the things you don’t know, but rather the incorrect things you believe, that cause many of the real challenges in life. False beliefs in your thinking about money can be a disadvantage to your finances. Beginning to enhance your understanding of money and personal finances is an essential way to get on the path to prosperity.
Today I’m going to share with you five common beliefs about money. And three common conditioned limiting beliefs about money that many women have. I’m also going to leave you with a free download worksheet on how to change those conditioned beliefs into empowering ones. If you’re not sure what conditioned beliefs are watch this video.
Avoid these 5 money myths:
1. Income equals wealth. People that make more have a tendency to spend more. Lottery winners are notorious for losing everything. Many of the families that earn over $1 million per year manage to outspend their income. You can earn a very high income and still live paycheck to paycheck.
· Wealth is what’s left over after you’re done spending. The more money you’re able to invest in appreciating and income-producing assets, the more you can expect your wealth to grow. A high income provides opportunity. It doesn’t provide a guarantee.
2. More money equals more happiness / Money has nothing to do with happiness. Studies have consistently shown that more income results in greater levels of happiness to a point. The break-even mark appears to be $75,000 per year.
· If you’re earning less than $75,000, you can expect your feelings of happiness to increase with a greater income.
· If you’re already earning that much or more, more money isn’t going to make you feel any better.
3. Owning is better than renting. From a financial viewpoint, it depends. Mortgage interest is deductible, but it’s still a significant expense. Home ownership also includes property taxes and maintenance. The benefit is the potential for appreciation and a place to call your own. Test out the numbers and decide for yourself.
· Renting is generally useful in the short-term.
4. Quality and price go hand-in-hand. There are many examples of this statement being false. Generic drugs are identical to the brand name version and cost much less. Companies price goods and services in order to maximize profit. That means the perceived value affects pricing, not the actual value.
· Many items are priced to accommodate expensive marketing campaigns. The Beats headphones so popular with teenagers are considered by the experts to be only worth half the common retail price. In this case, you’re not paying extra for higher quality.
5. An index fund never wins. Over time, index funds outperform the majority of managed funds. More often than not, the lower expenses and turnover rate of an index fund are more important than a professional stock-picker. Take advantage of the ability to match market returns for very little expense. What the heck is an index fund?
I know, I promised you 5 common untrue beliefs about money but I just had to throw this extra one in.
6. You should never have a credit card. Credit cards are a wonderful invention if used properly. However, credit cards also provide a means to spend money you don’t have. This can be a challenge or a godsend, depending on the circumstances. Credit cards can also help (or damage) your credit.
Are your inaccurate beliefs limiting your financial growth? Consider all of your money beliefs and question if they might be incorrect, too. Having accurate beliefs enhances decision-making and results. Avoid buying into the myths.
WHAT’S YOUR MONEY MINDSET?
MONEY WEALTH HAPPINESS
Now let’s talk about some of those conditioned beliefs that many women have and how to change them into empowering beliefs that can change your life.
Common Limiting Beliefs about money:
Money is the root of all evil
You have to pay your dues
You have to work hard for your money
Money doesn't grow on trees
Your Husband should be the breadwinner
Women just make less than men in the workforce
As women we need to take an active role in our financial lives. If you are not already doing so, I think it’s important for you, regardless of your marital status to take a more active role in your financial life.
By taking a more active role, you will gain more clarity, confidence and control of your life. To do so, you need to learn as much as possible about money and understand your thoughts about it.
What’s your mindset when it comes to money?
Now that you know about some of the common myths about money along with conditioned beliefs that may have been instilled in you from childhood, you can begin the process of replacing those limiting beliefs about money with empowering one.
If you made it to this part of the blog then you truly deserve this free worksheet on EMPOWERING BELIEFS that was promised to you. So go ahead and download the worksheet and let me know if you feel more empowered after answering the questions?