Edith Wharton once said, “The only way not to think about money is to have a great deal of it”. It’s true that money does not make the world go round but it would sure help our lives a lot if we didn’t have to work so hard for it. Here are some of the common misconceptions about money that we should not believe:
1. “I’ll save later!”
Most people who just got their first job don’t save up immediately thinking there will be time for that later and they should enjoy their money for a few years first. There’s nothing wrong with that as long as you don’t spend more than you have either. Investments grow larger with years of maturity. Insurance policies are cheaper when you get them at a younger age. A lot of people who invested late will tell you how much they regretted not starting early. If there’s one thing we can’t do, it’s turn back time.
2. “I save money on sales!”
You follow several websites that sell deals and discounts on clothes, food, trips and the like. Just because it’s on sale doesn’t mean you need it. Some don’t even push through. My friend bought a travel deal once and it took her months and a lot of grief to get a refund because the company was too swamped to accommodate her. Before you buy something always think, “Is this something I really need? “
3. “Investments will make me rich”
Putting the bulk of your money on investments and overestimating its returns is not a good idea. The tendency is you will spend more and save less thinking that you have money when you need it. But the truth is all investments are risky so don’t put too much faith on it. Always have contingency plans. Do not put all your money in one place.