There are certain subjects that just about everyone has an opinion on. One of those subjects is money. And while some of the opinions that people share are quite useful, the popularity of this topic also means there are a lot of misconceptions floating around. Depending on when someone hears these myths, it could actually have a negative impact on their financial health. That's especially true if a myth is repeated by someone who is actually thought of as being knowledgeable on this subject.
If you want to avoid ever being inadvertently tripped up by one or more incorrect statements, you'll want to read all the way through the following financial myth busting:
You Need to Be Rich to Be Truly Happy
When you get a big bill in the mail or find out it's going to cost significantly more than you expected to fix your car, it can cause you to feel a lot of stress. And as you're feeling stressed, you may tell yourself something along the lines of "if I only had more money." While people commonly think that their lives would be fabulous if they had a few more zeroes in their bank accounts, that's not what research has found.
What research has discovered is although there is some correlation between money and happiness, it's not what most people assume. Instead, research has found that once you reach the point of making $75,000 a year, more money doesn't really have any effect on happiness. In fact, it can have the opposite effect. There are many examples of both famous celebrities and rich businessmen who have taken their own lives despite having lots of money in the bank.
One reason this statement is so prevalent is because it's often said by people of older generations. But just because someone may have created trouble for themselves by getting a loan that wasn't as appealing as they thought doesn't mean this option should be completely dismissed. On the contrary, when used correctly, a responsible loan can be a very powerful tool.
For example, if someone has a significant and pressing debt, it may be causing major stress and racking up interest by the day. Instead of continuing to live with a black cloud over their head, a much better option is to get a more secure loan and eliminate that debt. With options like auto title loans from TitleMax, it's even possible for people with less than ideal credit to get the money they need to inject some financial stability back into their life.
Getting Paid More is the Best Way to Create a Secure Future
It obviously makes sense to want to move forward with your career. However, there are two very important things to understand about promotions. First, in industries where a promotion can mean a big increase in earnings, that doesn't necessarily translate into more savings or security. The reason is so many people make the mistake of buying a bigger house, fancier cars and other expenses as their salary goes up. As a result, their budget may feel even tighter than when they were earning far less.
Second, earning more by spending more time working doesn't normally translate to increased happiness. In fact, if you look at people from a variety of industries, you'll often find that they were happier when they were doing the type of work they truly loved even though it meant they weren't earning as much.
The bottom line of both of those items is there's no reason you can't live the type of lifestyle you want right now. By figuring out what you truly want and then making adjustments that allow you to be more financially responsible, you can make the most out of your time instead of feeling pressured to make more and more money.
You Have to Deprive Yourself to Save Money
One reason many people struggle to save is because they think it's an all or nothing proposition. In reality, huge cuts generally aren't a requirement to accomplish your financial goals. Instead, by getting a realistic picture of your financial health, you should be able to find relatively simple ways to cut down your costs.
Now that you know which financial statements simply don't have any legs to stand on, you won't have to worry about ever being put on the wrong path by any of them.
Raymond Beck is a writer and father of two. While he's been a journalist for the past seventeen years, he's currently in the process of writing his first fiction novel.