16 Mind-Blowing Money Myths That Are Keeping You Broke (And How to Bust Them)

What we accept as truths about money are often just money myths. Acting on those myths means many people don’t know how to make and keep money.

We start acquiring debt in early adulthood. Student loans may keep us financially compromised for years to come, and we sometimes fall into the credit card trap to keep us afloat in hard times.

Few schools teach children how to manage money and build wealth. We learn how to sit at a desk and behave. The focus is on getting good grades, but no one teaches us how to navigate our financial future.

We’ve chosen 16 of the worst money myths that may keep you broke and offer a roadmap to reframe these faulty beliefs into an entrepreneurial mindset.

1. I’ll Start Saving Later

The way to build a secure financial future is to put money away. It’s easy to think you have time to save later, but time is an illusion and passes so quickly. Suddenly, you’re in retirement and don’t have enough money to live on.

The most effective way to commit to a savings plan is to arrange for a set monthly amount to go into a savings account.

2. Making More Money Means Paying More Taxes

This common myth will keep you broke for a long time. It suggests a scarcity mindset and a lack of knowledge about making money work to create more income.

If you make more money, you can afford a financial advisor who can guide you toward tax savings. For example, you could start accumulating tax-deductible assets and investments.

3. Only Wealthy People Invest

This money myth is far from the truth. It’s possible to start investing with nominal amounts. You don’t need to buy property to acquire wealth. Even with a low income, regularly setting aside a small monthly amount will compound over time.

The first step is to plan your budget so you know how much money you have to spare. If possible, consult a financial advisor.

4. I Can’t Earn Any More Than I Do

You can be forgiven for believing this out-of-date money myth. It’s tough to get out of the mindset of “earning” by exchanging time for money. The way to break out of this limiting belief is to learn how entrepreneurs approach “creating” wealth.

Read Robert Kiyosaki’s book Rich Dad, Poor Dad to learn how to reframe this myth.

5. I’m Too Old to Start Making Money

You’re never too old to make wise financial decisions to influence your future. Perhaps you’ve gone your entire life without savings and have accrued some debt. Your first step is to clear your debts. The second step is to assign the amount you used to pay on debt to building wealth.

Even a little money can go a long way, and it’s better to start now than to do nothing.

6. I Will Always Be Broke

We often make prophecies based on our beliefs about money, and if you believe you’ll always be broke, you probably will be. Yes, that sounds harsh, but it’s true. My question is, “Why not you?” You deserve to be financially secure as much as anyone else.

Study wealthy people, attend free webinars, mix with rich people, and read books about how millionaires achieved success.

7. I Need What the Neighbors Have

People are competitive and often get trapped in wanting what others have. Your neighbor gets a new top-of-the-range car, and you immediately feel the pang of jealousy. Stop for a moment and think. Your neighbor may have borrowed money or bought the car on a credit card.

Instead of rushing out to buy an expensive liability, consider investing in assets — purchases that will make you money.

8. Old Cars Aren’t as Safe as New Ones

This money myth is untrue. The truth is that some older cars are more robust than the flimsy vehicles manufactured today. If you have a used car, get it serviced regularly and take care of it. If it’s debt-free, that’s great.

There’s no point putting yourself into debt with a new car unless the old one is no longer roadworthy.

9. My Family Needs the Best of Everything

It’s nice to have financial security, to afford lovely vacations, and to have money for fun activities. Still, what your family wants more than anything is your time and love. Money is a pleasant bonus, but it does not make you happy.

Teach your children the value of money, encourage them to think like entrepreneurs, and find creative ways to make money.

10. Two Paychecks Are Better Than One

In theory, a joint income sounds great but comes with a cost. If you have children, you might need to pay for a nursery. If you have a dog, someone must walk them for a toilet break if you both work full time.

Additionally, joint-income couples often live beyond their means and never manage to put money aside to build wealth.

11. Emergency Funds Don’t Matter

You may think your job is safe or that your skills guarantee you’ll find a new role if you lose it. However, we often fail to remember how quickly time passes and the bills keep coming.

Many people have no more than a couple of months’ income in savings and suddenly find themselves in a financial mess. Aim to put aside at least six months — ideally a year — for a rainy day.

12. Quality Goods Cost More

Occasionally, this myth is true, but mostly, it’s what clever marketing makes us believe so we spend more. Even the most expensive household brands can be faulty and not live up to the hype.

The best way to bust this myth is to research products before buying. Check reviews and make informed decisions.

13. A Healthy Credit Score Is Most Important

Your supposedly “healthy” credit score means you have bought into the “debt mindset.” You get a good credit score when you use credit cards and take out loans. When you pay your debts on time, you achieve the “reward” of having a good credit score. It’s a money trap that’s becoming challenging to escape. For instance, the provider will check your score if you apply for a mortgage.

Remember, a credit score won’t matter much if you’re financially free.

14. Avoid Debt at All Costs

It’s best to avoid debt incurred from impulsive buying. However, sometimes, it can be helpful, such as taking out a business loan to start an exciting new business or getting a mortgage to buy your first home.

The trick is understanding whether you can manage debt comfortably and pay it off promptly.

15. I Don’t Need Insurance

Saving a few dollars each month by not having insurance might seem like a good idea, but it can be costly. What if the house burns down or a flood ruins your furniture? Suddenly, the costs of rebuilding or refurbishing the house are beyond the scope of your savings or salary.

The same goes for car insurance. Accidents can be costly and not only for repairs. If someone gets seriously injured and it’s your fault, the insurance covers these costs.

16. It’s Ok to Lend Money to Friends

If a friend or family member has messed up their finances, lending them money isn’t likely to help beyond a short-term fix. It can also cause significant friction if the person fails to pay you back or continues to make poor money decisions.

The last thing you want to do is harass them into paying up, which can lead to resentment.

18 Ways to Save Without Sacrificing Life and Happiness

Do you want a new perspective on saving money? If you think this is another article telling you to skip your morning coffee or give up dining out, then let us tell you—it’s not! This blog post discusses 18 innovative and painless ways to save cash without sacrificing what makes you happy. We believe that a good life isn’t about cutting back on everything you love but about making smarter decisions with what you have. So, if you’re ready to start saving without compromising your lifestyle or happiness, dive right in!

15 Smart Tips for Living Well on a Strict Budget

In today’s economy, strict budgeting has become a reality for many, sometimes involuntarily. With fast fashion and rapidly changing trends, temptations are on the rise. Mastering a budgeting mindset can empower a person to manage their finances responsibly. It’s a step towards achieving self-fulfillment while leaving room for some fun.

15 Highest Paying Jobs That Nobody Wants

Truthfully, almost all the best high-paying jobs no one wants to work are blue-collar jobs. Working in the trades can sound intimidating, but it comes with great benefits, high pay, and job security.

Despite the pros, not a lot of people turn to the trades. If you’re feeling stuck, you may want to consider one of these high-paying jobs.

To curate this list, we chose jobs where you could earn at least $25 an hour. These jobs are also high in demand. To find out how in demand, we used Indeed and ZipRecruiter.

Here are 15 high-paying jobs that nobody wants.