3 Common Money Lies to Never Believe

Money Lies to Never Believe
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I had to expose a lot of lies in my life up to this point. It all began when I realized that the fat elderly man who brought me presents every year, in fact, did not exist. Then there was the occasion when I discovered that my ex’s study partner Chris was actually Christopher and not a Christine. You can connect the dots there, I’m sure. While those statements were deceitful, they pale in comparison to some of the money lies we’ve been told. In this post, I’ll share three of these lies with you.

1. Money doesn’t make you happy

Money Lies to Never Believe
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We have all heard the adages “money doesn’t buy happiness” and “the finest things in life are free,” but to put it frankly, both statements are total bullshit. I’ve experienced moments of the financial hardship many times in my life, as well as times of financial prosperity, and let me tell you that the latter well outweighs the former. You know, if you ask me, there are two main reasons why the idea that having money doesn’t make you happy is spread. First of all, you shouldn’t feel bad if you’re currently not keeping up with Warren Buffett.

Of course, I don’t want anyone to feel bad about themselves, but sometimes we need a kick in the behind to get us going, and I think this is totally OK as long as the constructive criticism you receive is delivered in a courteous manner. In fact, the main reason I emphasize to my friends and family how important it is to take control of your money is because I want them to experience the same benefits that I have by raising my own income and wealth over the past few years.

People disseminate the idea that you don’t need money to be happy because they don’t want you to be a competitor, which brings us to our second argument.

As you are aware, whether you like it or not, one of the key markers of your status and total prosperity in today’s society is how much money you have. This is why, if you go on a date or to a networking event, the first thing people ask you is what you do for a living. which is really asking how much money do you make since wealth is such a clear indicator of success that it’s simple to understand where you stand in relation to your peers.

Even while you may believe that the wealth of others around you has no bearing on your own pleasure, studies show that yes, the income of Dave down the street does have an effect.

According to a 2010 research from the universities of Warwick and Cardiff, people must believe they are better off financially than their friends and coworkers in order to be happy, regardless of how much money they are actually earning. I can only speak for myself when it comes to this subject, but if you want to know how having and earning more money has affected my levels of happiness, read on. My financial confidence has increased, which is how earning more money actually makes me happy.

I feel like I have more to contribute and am better able to make money outside of the regular channels now that I have developed numerous web businesses and am continuing to advance in my work. In other words, thanks to the talents I’ve been able to develop over the years, I can get out of a financial bind. The next advantage of having more money that I have experienced is not worrying as much. I naturally have anxiety, so it doesn’t take much for my head to start spinning with worry.

But having a solid financial condition has been crucial for my mental health, and that benefit alone has made leveling up my finances worthwhile. Let’s finally speak about how people choose to spend their money. I’ll be the first to admit that you need to budget your money if you want to improve your financial situation, but the truth is that spending money feels great—both when you treat yourself and when you treat others.

Most of us will continue to work whether we like it or not for the foreseeable future, but what sets some of us apart from the others is whether or not all that time will result in enough money to enjoy some of it or if those earnings will only be enough to get by. When you make a higher salary and thus have more money, you may at least take pleasure in the benefits of your job, but when you have a low income, it’s all work and no enjoyment.

It actually relies on your life goals and how materialistic you are to determine if having more money would mean less to you than it will to others. To round out this first lie, I’ll add that, in my own experience, earning more money has advantages that are worth the work to achieve. And, sure, when utilized properly, money can make you happy.

Also Read: The majority of people do these 7 investing mistakes

2. There’s no such thing as passive income

Money Lies to Never Believe
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It still irritates me that some individuals favor the tooth fairy and passive income despite the fact that neither exists. Let me tell you right now that yes, both of these things exist and can help you generate money while you sleep. Thank you for the $5, Mom. For a long time, I’ve been trying to figure out why there’s so much skepticism about earning passive income, and I believe it comes down to two basic factors. The first is that most individuals have never earned a single dollar of passive income and, as a result, cannot validate its existence.

Most individuals follow the path of going to school, obtaining high grades, getting a job, and clocking in and out to make a living. Because there is nothing pleasant about this procedure, most individuals have never reaped the benefits of passive income. Another concern that individuals have when it comes to passive income is how it is characterized. Most individuals believe that obtaining passive income entails creating money with no inputs.

This is untrue since all forms of passive income need some input of resources, whether it is time, money, or both. if you create a blog and publish 100 posts, for instance, you’ve put many hours into your website. Because the money is being made after the job has already been done, any revenue you generate from your blog will be passive in nature. alternatively, you may profit passively through investments in capital. One common illustration is receiving dividend checks from your dividend portfolio. You must invest money and dividend-paying stocks to earn this passive income, and you will be paid correspondingly every month, quarter, or year.

You may be wondering how I know passive income is real, and the answer is because I earn it every day through my two blogs and my drop service business. I generate money as I eat, sleep, and even go on my one-hour daily walks. You can regulate your degree of work and involvement in your passive income model once you have a system in place. For example, with a YouTube channel, you can do everything yourself or outsource parts or all of the work depending on how much time and money you want to commit.

If you still don’t believe me that passive income exists, open your banking app and look at the amounts in your checking or savings account. When you look at the interest that has accrued on your money over the last year, I hope you notice a lot of zeros. That, my friends, is passive income. You didn’t labor to get that interest income, but you did have to deposit money to earn it. Don’t accept the myth that passive income doesn’t exist since we’ve just demonstrated that it exists, and you’re probably earning it right now.

3. Long-term investing will make you rich

Money Lies to Never Believe
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You’ve probably heard that if you want to grow rich, you should save money and invest for the long term. Well, I’ve got news for you: this is a lie. To be clear, you should certainly invest your money, and just because I’m here to provide a hot take on investing doesn’t mean you should avoid it like the plague. Long-term investment, on the other hand, is not an appropriate technique to embrace as a major means of wealth generation, and I’ll explain why now.

Let’s imagine you want to be a millionaire and after plugging some numbers into your compound interest calculator, you discover that you’ll need to invest $900 every month for the next 30 years at a 7% rate of return to get there. Sounds fantastic, right? Before we add a potential millionaire to your business card, we need to fix a few concerns. The first problem concerns human behavior. Let me ask you a question: when was the last time you performed anything regularly for 30 years? You could not even be 30 years old yet, making this question, to say the least, pointless.

What I mean is that life occurs, and there will be times when meeting your investment contributions will be difficult. For example, would you be able to invest $900 a month once you buy your first house if you lose your job or your car’s engine blows up on the side of the road? Obviously, I hope none of these things happen to you, but let’s face it, life is full of surprises. The second, and maybe more concerning, the issue is the temporal value of money.

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If you invest regularly for the next 30 years, you’ll be rolling in cash, right? Not exactly. When you consider an inflation rate of 2.5, the one million dollars you’ll have in 30 years will be worth just $476743. In other words, you’ll be a half-millionaire at most. If you’ve put all your eggs in the long-term investment basket, consider yourself lucky since you’re understanding this hard fact now, not 30 years from now. However, this unpleasant reality prompts the question, “What is the solution?”

Long-term investing, as demonstrated by the example, can increase your wealth, but it should not be your major source of wealth creation. In addition to investing, you want to work on increasing your income. As you might see, investing $5,000 per month instead of $900 per month increases your chances of becoming a millionaire dramatically. So, to generate more money, simply supply more value. Adding additional value in today’s world can be accomplished by teaching or entertaining a huge number of people, or by delivering a very unique and valuable skill set to the open market.

This is why you see so many YouTubers making ridiculous sums of money: they provide something of value and have the reach to share that value far and wide. As a result, when you have something valuable to offer, the sky is absolutely the limit. Outside of online businesses, another example can be found in the medical field, which demonstrates why specialized doctors are so well compensated; they provide an essential service to the public, and given the scarcity of their skill set, they can command very lucrative rates for their time worked.

Yes, you want your money to work for you through investing, but it doesn’t imply you should rely primarily on long-term investment as a source of wealth. Instead, combine investment with continuing income growth, and when the two come together, you will be able to achieve all of your wildest financial dreams.

Conclusion

Our financial practices are influenced by what we tell ourselves and believe about money. Our money falsehoods won’t only deplete our wallets if we’re not telling ourselves the truth. They can have an impact on our financial knowledge and boost our confidence. And they obstruct the maintenance or growth of riches.

We can reset our thinking, shift our perspective, and begin taking action once we realize the money falsehoods we believe. This allows us to make better decisions and make greater progress toward our long-term or short-term financial goals.

DISCLAIMER: I do not provide financial advice. These articles are strictly for educational purposes. Investing in any form carries some level of risk. While risk can be reduced, your investments are entirely your responsibility. It is critical that you do your own research. I am only giving my thoughts with no promise of profit or loss on investments.

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