Money myths that are stopping you from getting rich

THERE are many sayings about money that we hear repeated from our elders, pastors, friends and even employers, so much so that we never really stop to question them and whether they are doing us more harm than good. Most, if not all, of us would like to have more funds at our disposal, but many of us perceive wealth to be a distant dream — not something that we can actually attain in our lifetime.

Personal finance blogger Trevann Hamilton, owner of goodyonabudget.wordpress.com, says some of the most common notions about money are preventing us from experiencing financial freedom.

“When your mind is conditioned to view money as something that is negative, scarce, or out of your reach, then you will be content accepting the bare minimum,” she explains. “If we truly desire to have more money and improve our standards of living, then we first need to break free from capitalist ideas that perpetuate a culture of poverty.”

Hamilton shares these five common money myths that might be standing between you and a better life.

Money can’t buy happiness

“This is not to say the richest man in the world is the happiest, but it is disingenuous to believe that money doesn’t contribute to happiness,” Hamilton argues. “Money is needed for food, shelter, education and health care, so naturally if you can’t afford these, your happiness will take a hit.” She points to a study done by Princeton University, among others, which found that income levels tend to correlate with happiness, up to a certain figure. While people who can afford their wants and needs can still be unhappy, the studies show that those who cannot afford theirs are likely to be more unhappy.

Money is the root of all evil

“This is such an oppressive statement, because it scares people into thinking that having money, or even wanting it, automatically makes them wicked. This tricks people into believing that there is nobility and honour in staying in a low paying job for their entire lives, while they wait for their riches in heaven,” Hamilton says. “And for the record, if you believe in the Bible, it actually said the love of money [greed] is the root of all evil, not money itself. Wanting to live more comfortably while you are alive does not make you greedy.”

Money will change you

“People coming from low socio-economic backgrounds are also made to feel afraid that they will forget where they are coming from, or ‘sell out’ their friends by becoming wealthy,” Hamilton adds. “These remarks are oftentimes made out of jealousy or contempt as soon as someone starts doing even a little bit better financially. The truth is that you need to change in order to grow from any situation, and you need not feel guilty for doing so. It is staying the same that you really need to be afraid of.”

You can save your way to wealth

“People love to say you can save out of nothing and honestly, you can’t. The minimum wage in Jamaica is less than $10,000 per week. Chastising people earning this, or close to this, for not having emergency savings is insane,” she points out. “You cannot budget your way out of brokenness when the money you are making is barely enough to cover your needs.”

Hamilton notes that if you are trying to save but find it too difficult, it might be that you need to find ways to make more dollars, not ways to make your dollar stretch further.

Investing is only for the rich

“You definitely don’t need to be a millionaire to invest money,” she reassures. “Of course, if you have more money, you have the potential to earn much more from investing. However, you can start with as little as $500 at some institutions. That $500 will not make you a millionaire in a year, but you’ll more than likely have some more money than you did before.”