Money Myths Busted

There are many myths that exist where money is concerned. These beliefs have often been formed as the result of some financial trauma either personally experienced by the believer or passed on to them as a warning, possibly disguised as advice, for how to view and manage money.

These points were originally shared on Clubhouse in the MarimorLife: Mind & Money House during the Wealth & Wisdom Wednesday discussion on November 17. 2021. This is our contribution toward shattering false beliefs about money so that you are able to make better decisions, create better habits and experience a greater quality of life.

#1

MYTH: Money is the root of all evil.

People have believed this most commonly because of the misreading or misinterpretation of the Bible scripture found at 1Timothy 6:10 where it actually says “the love of money is the root of all sorts of injurious things.”

TRUTH: Hopelessness is the root of all evil.

When there is no hope then there is nothing to look forward to, work on or build up. It leaves a person feeling that whatever they do good or bad it doesn’t matter. Under those conditions and with that mindset a person could easily fall into a selfish method of operating. So keep hope alive and encourage others to be their best.

#2

MYTH: Having more money will make all your financial problems disappear.

There is a misconception that money, either the lack or abundance of it, can cause or solve our problems. When we live life from this perspective we actually yield our financial power to the circumstances that come up out of our control.

TRUTH: Proper money management can prevent financial problems

When you track your money, then you can control it. This means allowing you an opportunity to ensure that when problems do come up then you would be able to handle them.

#3

MYTH: It’s ok to make big purchases with a low credit score

Many people believe that when you get approved for a credit based purchase that means you qualify. For those with low credit scores this is a celebration for the one receiving the approval because now they can . What they may not realize is that the creditor is also celebrating but for a very different reason.

TRUTH: The lower your credit score the higher the interest you’ll pay

What most people overlook with a low credit approval is the fact that their low credit score introduces them to the creditor as a high risk. Being viewed as a high risk means the purchase they’re desiring to make will end up costing them more because of the higher interest rate they will be charged.

#4

MYTH: Life insurance is only a benefit when someone dies.

Many people are hesitant to discuss life insurance or to make arrangements for their final affairs because they believe it will bring them bad luck or an early demise. They believe that you don’t have to get life insurance until you’re planning for your legacy.

Truth: There are also living benefits to life insurance that contribute to quality of life.

It depends on the type of policy you qualify for that may determine the benefits you are able to receive. These living benefits can improve your lifestyle while the traditional death benefits offered through life insurance support you in creating a legacy. Knowing about these living benefits and how to use them can change your quality of life.

#5

MYTH: Investing is only for people with a lot of money.

There was a time when you had to have thousands of dollars to invest before you could even think about stock market investing. During those times the understanding of growing wealth and opportunities for earning interest on returns was limited to the wealthy.

TRUTH: Investing is for everyone and can begin with a nominal amount to enter the marketplace. The greatest investment one can make today though is that of time. Becoming familiar with the marketplace is paramount for recognizing and taking advantage of opportunities that may come up. It has become much easier to start investing and see growth in your best interest.

These are just a few of the myths that are most common and the truths that have busted them. What are some of the myths you’ve found to be untrue? Feel free to reach out with any questions or to take steps toward accomplishing your financial goals. START HERE.

Also, feel free to join our community on CLUBHOUSE for more enlightening and intriguing conversations.

Disclosure: MarimorLife LLC is not an investment manager and primarily provides information for financial education.

Kevette Minor Kane,CFEI, CEIP

Financial Liberation Expert

MarimorLife LLC, Mindset & Money Management

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Connect with @iamkevette for motivation to transform your mind and your money.