Serious Money Myths Dispelled

It’s time you reconsidered what you think you know about these clichés/myths.

12:32 27 April 2015

According to financial experts, there are many myths that once in a while get us into deep troubles, force us into developing false ideas about how we spend and use money and change our saving and investing habits.  Here are some more myths that we should totally disregard in our bid to earn more money and get rich.

 

A penny saved is a penny earned

 

According to an author of a financial book, most people struggle to save as much as possible so they can become rich. But that will never happen. The real answer to becoming rich is earning and earning without stopping. Nowadays, savings will never earn you any reasonable interest in a whole year. Even if you save your whole earning, let’s say about £20,000 per year, you are least likely to become wealthy in a few years. 

 

It is important that one avoids looking just at the expenses of his or her budget and avoid getting into trouble of shortage of income. If you want to save up a huge sum of money, stop thinking about trading your time for money, instead, think of getting rich as a nonlinear process that comes about by creating problem solving ideas. Don’t be surprised if you see someone create their fortunes overnight, if one has the right idea at the right time, it is surely very possible.

 

Experts say that most of the money problems experienced by the middle class individuals don’t arise from hefty spending but from low incomes generated by these people. The solution is not cutting down your budget but working towards earning a higher salary. This can be done by getting a second job, working part-time, ensuring your teenage kids are working or utilise every channel you can to earn more money for your family.