Financial freedom is something that we all aspire to achieve. Being independent has its own charm, however, the road to it isn’t really all easy and pretty. It is exhausting, emotionally draining, and requires a lot of endurance and perseverance. You struggle until the very end, putting on a public facade while you do so. The greatest bottleneck in your road to financial freedom is certain money myths that we have all been led to believe. If you have been struggling with financial freedom, chances are that you have been bound by these myths. Continue reading, and find out what the 3 most common money myths are. You should be informed, not misinformed, especially when it comes to money.
1. Buy not rent
People think of rent as money being wasted. It is the general consensus that it is better to buy than rent. However, that has its own complications. When you are young, you do not really have enough money to make that down payment for a property. At that age, you really should avoid getting tied up in a loan or debt, so rent is the right option for you. You can always save money, and buy that house you really want over the years.
Moreover, you should not think of rent as a waste. An expense does not have to be associated with a tangible return always. You have food every day, that does not really turn into an asset over time, yet is an expense. That does not mean you should stop having food right? The same is the case for rent. So stop believing in this myth about money, and rent without regret.
2. You can not invest without being filthy rich
In the domain of personal finance myths, this has to be the most common one to surface. You do not need to have a lot of money in order to invest. Just like everything else in life, you can start small. If you avoid investing because you think you do not have enough money, or the idea itself intimidates you, then I hate to burst your bubble but that “right time” will never come.
Instead of waiting to be rich before you invest, it should be the other way around actually. You should invest to become rich and reach the level of financial freedom that you desire so deeply. If you are unaware of how to invest, you can always seek professional help and financial counseling for that matter.
3. Cut down on all unnecessary spendings
The idea of cutting down on useless expenses has been circulating greatly these days. All these fake gurus and mentor pages make posts insinuating this very idea, and beg you to cut down on your daily spendings. Saving is a great way to achieve financial freedom, however, in no way does that mean that you stop spending altogether. Tearing your kitchen towels into half-sized pieces isn’t going to get you from minimum wage to millionaire status.
Instead of taking this approach, take a different one. For starters, try to make more money if you have the time capacity for it. Also, cut down on “wasteful spending”, which is actually doable and smart to do. This gives you a big chunk of savings that you can actually use to invest. At the same time, it does not take away your need. For example, you could make do with an iPhone 7 instead of an iPhone X.
Apart from these major money myths, you should also avoid falling for a few other minuscule myth traps. Do your own budgeting and not leave it to family members. Have a separate savings account, and most of all do have an emergency fund.
This was money myths and your road to financial freedom. I hope you it is a smooth one now. Have you been a victim of these myths? What do you think of them? We would love to hear your thoughts and opinions in the comments section below. Or, email us at PACE Business.