Have you ever heard or been programmed by money myths?
It was all that long ago that I believed a few money myths out there. I'm very grateful to have been taught otherwise. Now live by financial principles that prove these to be myths.
In the pdocast we debunked these myths:
Myth: It's inappropriate to talk about money (income or problems)
FACT: We should talk about money comfortably.
Myth: The more money you have, the happier you'll be.
FACT: Not always true. I have read about Billionaires killing themselves because they lost a few billion dollars in a bad deal.
Myth: Everyone uses debt.
FACT: The #1 reason first-generation millionaires become millionaires is they got out of debt and stayed out of debt, including their home mortgages.
Myth: It's impossible to become a millionaire if you don't make more than $100k/year.
FACT: I did it and you can do it too. I have yet to earn $100k/year and have amassed a 7-figure net worth. Many others have done the same thing.
Here are some more myths floating around that you need to be aware of and KNOW they are not true:
Myth: You have to have a credit score.
FACT: I have a credit score of 0 in the two countries I am a citizen.
Myth: It's smart to have a credit card for the reward points or cash back.
FACT: 100% of people spend more with plastic & 55% of people carry a rolling monthly balance with an average 25% apr.
Myth: The "little man" can't get ahead.
FACT: People of all asset classes are winning financially around the world.
Myth: You don't need a Will or Estate Plan unless you are rich or have children.
FACT: Everyone over the age of 18 needs to have a Will.
Myth: You can't travel or rent a car without a credit card.
FACT: You can do both with a debit card.
Myth: I'm stuck in the "rat race" of life.
FACT: You get to choose to be "stuck".
Myth: A high income makes you wealthy.
FACT: I had a client that made $1M/year and filed for bankruptcy.
Myth: It's smarter to buy a house than to rent.
FACT: Depends on your financial goals. Short-term renting is great while you are getting out of debt. Personally, I choose to rent as my values and lifestyle choices are to travel and explore multiple parts of the world.
Myth: You need to have a lot of money to start investing.
FACT: You can start investing with $100/month. Less if you have an employer retirement plan available to you.
Myth: You need to work until you're in your 60's (or longer) before you can retire.
FACT: You can "retire" or semi-retire when you are financially ready. Retirement is not an age, it's a financial number!
Be sure to share any other money myths you have heard or believed in the comments below so we can debunk these.
Be sure to check out the ILMA Academy to start living your Ideal Life years sooner: https://www.sentinelcoaching.com/ilma
