8 Dangerous Money Myths Debunked

In Today’s Article, we are going to take a look at 8 Money Myths and debunk them right away!

Why do we call them Money Myths in the first place? Because they are MYTHS not FACTS. These Beliefs around Money have probably been inserted into your overall Belief-System ever since you took your first Breath!

I am making this assumption because – with a small exception – most people are born into broken belief systems when it comes to money. We never had the choice to make up our own mind about money because we have constantly been exposed to the beliefs of those surrounding us.

We grew up with these beliefs so we consider them normal and most of us never even questioned them because “that’s just the way it was always done” – right?

But what if there was another way? What if there were actually other ways to think about money? What if the beliefs we have held so dearly are just stupid and wrong?

It would mean having to admit that you were wrong in the first place, It would also mean having to acknowledge the fact that neither your parents nor your friends knew the answers (and please, don’t blame them – they simply took on the beliefs that were passed on to them as well!). It would mean having to crush these beliefs and replace them with positive and supporting beliefs.

We can always choose to focus on WHAT WE HAVE or WHAT WE LACK.

If we focus on WHAT WE LACK – guess what happens? We will simply attract more of what we are lacking because that’s what we’re thinking about.

On the other hand, if we focus on WHAT WE HAVE, we can attract more of it because again – this is what we are thinking about! So in conclusion, constantly focusing on the lack of money in your life will not bring you any more of it. Whereas focusing on the money you DO HAVE increases your chances of getting more of it!

“It is not the man who has too little, but the man who craves more, that is poor.”

– Seneca – 

Before we dive into the 8 Money Myths which I came across in Dan Lok’s Bestseller “F.U. Money”, be aware that some of there might be offensive language in this article. There also might be an uncomfortable feeling whilst reading this because you could realize how wrong you’ve been you’re entire life. However – this is not a problem because you first have to know what’s wrong before you can change it. So if you’re committed – stick with us!


Money Myth #1 – Money Can’t Buy Happiness

This is probably the most common Money-Myth out there. It is so widespread because it justifies all the poor people of not having the amount of money they would like to have. People love to say that sentence because it is a way for them to justify being broke – or worse – being poor.

Being broke is only temporary and even the most successful entrepreneurs can be broke for a short period. Being poor on the other hand is a chronic limiting belief and has nothing to do with short-term.

“Broke is temporary, poor is eternal”

– Robert Kiyosaki – 

What’s worse is that so many people who use that sentence are actually the ones who would like to have more money but are simply too lazy or too ignorant to ever change something about themselves. They try to look rich and impress you with things they can’t afford. And because they can’t afford them actually they say “money can’t buy happiness”.

It also seems so true because it has something “noble” and “humble” about it. And whilst YES, it is true that you can be a happy and lovely person without having lots of money it is simply a myth that money can not buy happiness. It won’t be able to actually buy you the state of happiness because happiness is an emotion and you can not buy emotions.

What you can buy is the emotion attached to something that money can buy.

Think about the last time you went shopping, you probably saw a nice item which you liked and bought it. Because you fancy this item, it makes you happy that you now possess it. Therefore, you have bought the emotion of happiness which was attached to the item. The item itself is neutral, but your personal perception about it is what creates the emotion around it. For some people, fast cars bring them happiness, others get happy by shopping for clothes.

Now if we take that into consideration and think about the things that money can provide us with, it gets obvious why money CAN buy happiness. Money can buy us time and freedom. If we have more time and freedom, we are happier. With money, you can pay for other people to do the things you don’t enjoy which saves you time. Time that is saved so you can spend it on the things you do enjoy doing. When you are able to spend time on things you enjoy doing, you have more freedom. More freedom brings you more happiness because you don’t have to do so many things you actually don’t like doing at all.

Money CAN buy you happiness by providing you with possibilities to save time and therefore create more free-time for you which you can spend on things you enjoy doing.

“Whoever said money can’t buy happiness simply didn’t know where to go shopping”

– Bo Derek – 


Money Myth #2 – Rich People are Assholes

This belief has already been covered in another article of ours – but we’ll still take another approach here.

Once again, this is a belief often used by poor people because they try to justify being poor. They want to make the impression that they are such good human beings and all the rich people are greedy bastards. If you haven’t asked yourself where all that hate comes from it’s about time that you do!

Chances are, they don’t actually know anybody that’s rich. They just see the rich on TV, in their magazines, and on Social Media and then make an assumption on them. They do that because something inside them would actually like to be like that rich person – but because they are not, they try to look for ways to discredit them. The truth is that there are assholes within the rich and assholes within the poor.

We believe that amongst the poor, there are many more selfish, greedy and ignorant people than amongst the wealthy and rich.

First of all, that is because the majority of humans are not rich and wealthy. Therefore, the percentage and the amount of people amongst the poor and broke is so much higher than it is amongst the rich and wealthy.

Secondly, rich people are usually rich by design and not by accident. That means, they worked for their fortune and in most cases they absolutely deserve it.

“Happiness is not in the mere possession of money; it lies in the joy of achievement, in the thrill of creative effort.”

– Franklin D. Roosevelt – 

Rich people create value and make life better for other humans, that is why they are paid so well and that is why they are rich. Think about the first 3 people that come to your mind when you hear the word “millionaire” or “billionaire” and then think about what they have done, what they have provided us with. You’ll probably see that they invented, created or developed something (a service or a product) that is actually making our life’s easier and better.

What’s interesting is that you don’t have to be the next Bill Gates or Steve Jobs to become rich. Whilst geniuses like these two are the exception, there are a vast amount of successful and rich people who are not even famous in the first place. That is because you don’t have to be a genius or a superstar to be rich!

If you ever traveled by bus or train (which I assume you did) then you probably pressed one of those buttons that tell the driver you want to get out at the next stop. Now if you’re like me – you don’t have any idea who actually invented that button or even which company it belongs to – but you can bet on it that they are making a fortune of it!

Money Myth #3 – You Can Afford To Wait

Think you have enough time left? Better think twice! Our time on this earth is only limited and the average lifespan in a developed country is about 85 years.

Take away the first 20 years due to childhood, growing up and attending school and you roughly have 65 years left. One-third of our life is spent sleeping so let’s take away another 20 years which leaves us with 45 years to live. We’re also going to spend/waste a considerate amount of time on entertainment, pleasure and other stuff that tries to fill the void within us so let’s subtract another 20 years.

What is left are roughly 25 years.

“There are things we control – but things that are not in control, no point wasting time and energy into that”

– Rohit Sharma – 

25 Years, that’s about the time we have to make a difference and become somebody. We can easily waste those 25 years by blindly following what everybody else is doing and one day waking up and asking ourselves “what the fuck have I done with my life” or we can decide to make the best out of those 25 years and invest in ourselves.

You probably heard the advice from financial guru’s that advise you to live below your means, cut back on your expenses and invest the small amount of money you were able to put aside in some fancy funds or stocks.

They try to make you believe that if you follow their advice, you will one day have a fortune and can finally retire rich. What they don’t tell you is that first of all there is no guarantee that your investments will actually grow. What they also won’t tell you is that by the time you “should” be rich and wealthy you’ll probably be so old that you aren’t able to enjoy it anymore.

If you follow that sort of advice you might have somewhat of a strategy to get rich, not an amazing strategy and neither a safe one but hey, at least something – right? Further, if that plan works out, you’ll probably have other problems due to simply being old.

Good luck trying to drive around in that fancy sports car and traveling the world whilst worrying if your body is strong enough to support being active for an entire day.

Bottom Line: You can not afford to rely on such advice and neither can you afford to wait. If you want to get rich, better start working on it NOW! Becoming rich is a process, not an event.


Money Myth #4 – You Have To Be Lucky

You probably heard dozens of stories from people who won the lottery and went flat-out-broke in short time again. It happens so often because the ones who win the lottery have always been poor and never developed positive beliefs around money. The moment they hit it big, they instantly waste it on things to impress people who give a fuck about them.

Although they got lucky, luck is not with them because they got it all wrong in the first place – thinking that one becomes rich by getting lucky. Further, the chances of you winning the lottery are very low.

In fact, the chances of you actually hitting the jackpot are so low that you have a bigger chance to:

  • die from being left-handed and using a right-handed product
  • being crushed by a meteor
  • being killed in a plane crash
  • becoming an astronaut
  • being killed in a car accident on your way to buying that lottery ticket
  • master the art of transformation and become a cat (okay, this one is made up!)

Still think you have to be lucky? You have more realistic chances of becoming rich by working on yourself, developing the necessary skills to thrive in your area and build a business around it. What’s even better with that approach is that it does not rely on luck but only on yourself and your ability. This means that if you’d fail – you can always change and optimize and aspect of it and re-direct your course. And if you are winning, it is all up to you!

There’s the saying that luck favors the brave. It is not brave to buy a lottery ticket and hope to win the jackpot. It is brave, however, creating a business around something that has meaning to you or resonates with your strengths and abilities. It is brave to stand out of the masses and go your own way in life.

“Good luck is when opportunity meets preparation, while bad luck is when lack of preparation meets reality”

– Eliyahu Goldratt – 

Forget being lucky – becoming rich is a combination of continuous thoughts and execution of the latter. It is a long-term process, not a one-time-event (winning the jackpot). Becoming rich requires a certain set of skills and a certain set of beliefs. One does not simply become rich by luck, but by taking continuous action and developing skills. It might happen that once you are “warmed up” however, luck will come into play and provide you with profitable opportunities – but that is because you earned them!


Money Myth #5 – You Have To Be A Cheapskate

Do you know the people that are willing to drive hours just to get a product for a slightly cheaper price? They line up in masses just to profit from a mere 10% sale on something. They drive to another city because they can save 50 bucks on an item which would be available in their hometown. They book 5 different flights in order to save some 100 bucks because the direct-connection would be more expensive. They are the ones who try to triple check their receipt because they feel the cashier ripped them off some pennies.

In other words: they are cheapskates.

If you know people like this, you probably also know that none of them are rich. That is because they try to be penny-smart. That means trying to save as much as possible on the small amounts spent. Those small amounts they could save don’t actually make any difference in their wallet but yet they claim that they save so much money by doing this. The problem is that most often they try to play it smart for pennies but act like idiots when it comes to the big bucks.

Another explanation for cheapskates are the slimy vendors who try to trick you into buying something that is seemingly limited while it is actually not. They are the ones trying to convince you that you “absolutely need” that organic vegetable powder because if you don’t you’re ruining your health. They try to do everything possible just to generate a sale because they are cheapskates only focused on their own pockets – they don’t care about you or your needs at all!

“Beware of those who are stingy, for they would rather sting you than give you anything.”

– Suzy Kassem – 

If this happened to you, you might have had the feeling of “something being wrong” with that person or opportunity they tried to pitch you for. And your intuition did not lie to you! It recognized them for being cheapskates and tried to warn you by giving you this uncomfortable feeling. One closer look behind the scenes would expose them and you’d realize that they are not doing any better than you. Heck, if they would, they weren’t depending on you making that sale in the first place!

Bottom Line: People with positive and abundant money beliefs are generous and care for others (doesn’t mean they care what anybody thinks). They spend money freely and they don’t care if they save 10 bucks if they’d drive to another city, wasting hours by just getting there. They value their time more than they value their money.

“Real generosity is doing something nice for someone who will never find out”

– Frank. A Clark – 


Money Myth #6 – You Have To Get Rich Slowly

This one has a lot in common with Money-Myth #3!

While the first is about you not have any time to waste when it comes to making your desired amount of money, the latter is about having to do it the slow way.

The slow way is the path that was prescribed by general beliefs: to go school, work hard, be loyal to your company, go to university and get a well-paid job, live below your means and save to invest. Doesn’t sound like a lot of fun, does it?

There’s so much wrong with that path. First of all, there is no such thing as “job security“. Constant political and environmental changes could always result in you not being able to do your job anymore. Saving to invest is not bad but it is also not safe because there is no human who is able to predict the market and foretell how it is going to behave. The company you are loyal to can still fire you and even if you are loyal until the end, they won’t simply hand you millions in cash to show you their gratitude.

“The rich invest in time, the poor invest in money”

-Warren Buffet – 

Luckily, there’re other ways to get rich. You can get-rich-quick. Although, we’d have to further define what we mean if we say quick. Let’s just make it simple and say that getting rich quick is about a span of 10-15 years compared to the slower alternative explained below which has a span of your entire lifetime. What sounds better to you – getting rich in 15 years or hoping to get rich one day in 40 years?

Most people overestimate what they can do in a year and underestimate what they can achieve in a decade (10 years).


Money Myth #7 – You Have To Work Hard For Money

Before we get going with this myth: there is nothing wrong with hard work.

Hard work does pay off and it is in most cases a necessity to achieve great results. But by hard work, we are not necessarily talking about exhausting physical work. We are talking about the willingness to bring sacrifices. The willingness to sacrifice your free time to work on your business. The sacrifice to not do what everybody else is doing so you can live the life you want to live. The sacrifice of not seeing your friends or family for a certain period so you can focus on what will make your life better.

“There is no decision that we can make that doesn’t come with some sort of balance or sacrifice”

– Simon Sinek – 

The hard work that is not needed to get rich is, as mentioned earlier, the physically exhausting work. Think about the hardworking men and women that work in construction jobs for example. They deserve huge respect because every single day, they challenge their bodies and put their health on the line. But the sad truth is that almost none of them is actually rich or wealthy. They are so bound to their job that they couldn’t afford to stop the work. This should prove that hard work is not a necessity in order to get rich.

There are easy ways to make money and there are many people out there who are making considerably easy-money. Easy money is when you enjoy doing what you do and it doesn’t feel like you’re working for it at all. For an artist, it is easy money to paint a picture; for a singer, it is easy money to sing a song; for a skilled salesman, it is easy money to make a sale.

“Formal education will make you a living; self-education will make you a fortune.”

– Jim Rohn – 

The catch is, you might first have to put in some “hard work” in order to get to the point where you are able to make easy money. Maybe you’d first have to develop a certain skill and master it, but once you’re there you can easily make money off it and even enjoy doing what you do.

Most people never take the time to question themselves and take some insight into their personality. If they would, it would be so much easier for them to recognize an area in which they could thrive. We can get rich by focusing on our strengths instead of our weaknesses.

Take some time to ask yourself questions like:

  • What am I good at?
  • What do I enjoy doing?
  • What are my strengths?

Money Myth #8 – You Have To Be Perfectly Ready

There is always a perfect time to do something – NOW.

That is because we will never be perfectly ready or perfectly prepared for something. There will most certainly always be something we did not take into consideration. There will almost certainly be some unexpected events.

We gain experience by DOING things not by PLOTTING ON THEM.

So if you want to be ready, start doing whatever it is that you were pondering about. The timing might never be perfect and if it is, you’ll have to act very, very quickly.

It is better to always be prepared. To always be ready for whatever. To live in the moment and to enjoy the process that you are going through. We can learn a lot if we look at the way kids live their lives. They never wait for a moment to be perfectly ready. They simply do things and learn on the go. They improvise, overcome and adapt.

“Courage is being scared to death, but saddling up anyway.”  

– John Wayne – 

This is the school of hard knocks and it will teach you so much more than plain theory. Theory is not always up to date and not able to respond to quick, unexpected changes.

For more insight on this topic, feel free to check our article “The Importance of always being ready!”


Bottom Line

There a bunch of Myths surrounding money and most of them have been implanted by our surroundings. There is no need to wait forever to get rich. Neither do you have to do it the slow way.

Money can buy happiness because it can provide us with more time which equals more freedom. Becoming rich is a process, not an event and it requires a certain set of skills. You don’t simply get rich by luck but by earning your shots.


Did you enjoy this Article?

Have you detected at least one of these myths within your belief system? If yes, how many of them?

Leave your thoughts in the Comment Section below!


“Time is more valuable than money. You can get more money, but you cannot get more time.”

– Jim Rohn – 

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8 thoughts on “8 Dangerous Money Myths Debunked

  1. Carol5162 says:

    Did we even talk about money in our first years in school? No! Money topic was never in the curriculum.

    You couldn’t be more right on the first Myth: Money can’t buy you happiness. Thank you for clarifying ‘being broke’ and ‘being poor’. I know many people fall into this myth category while justifying their state of lack of money.

    Nice FACTS ON MYTHS!

    Reply
    1. Simon says:

      Thanks Carol!

      No, we’ve never been taught money in our schools and neither have we talked about it. This is mainly for two reasons. Firstly, the system is designed BY THE GOVERNMENT to raise people FOR THE GOVERNMENT. It was not designed to make yourself a thinker and somebody that does things his own way – therefore, money was never taught, because it is not that difficult to make money on your own. Secondly, Teachers come from this same system and therefore never learned anything about money themselves.

      Reply
  2. Shashwat .Prakash says:

    Hello

    I really enjoyed going through your article, it was surely a very interesting read. Loved how you justified the “Money can’t buy happiness” saying. It was on point and makes the reader wonder about how it is being used as an excuse most of the time. 

    All of the 8 Myths you mentioned were logically correct and I would like to thank you for sharing this eye-opening piece of work.

    Reply
    1. Simon says:

      Thanks a lot! I appreciate it! Isn’t it mindboggling how we were sold that lie of “money can’t buy happiness”? It’s just crazy in my opinion as our life is based around money and you need money to go through life so to hell with that lie, money can and does buy us happiness every time we spend it on something. Only the value of what we spend on is what can down our happiness.

      Reply
  3. Chas says:

    Hi Simon,

    You have hit on 8 dangerous money myths we can all relate to. I never worried about my finances until I got marries and started a family, then I was wishing I had started sooner! My wife became an Rn and we figured we had it made financially, but we soon found out, the more you make, the more you spend. You do more shopping and buy temporary happiness.

    And as you say investments don’t always make you rich.When we invested in mutual funds, it always seemed to be the worst time. Remember the dot com bubble, I got burnt on the internet start-ups, big time. I can also tell you that hard work doesn’t make you rich, working smarter does! Do you have a method to share for achieving wealth?

    Thank you for this very enlightening article, you gave me a lot of food for thought!

    Reply
    1. Simon says:

      Thanks Chas! Well for that habit of increasing our spendings as soon we have more money I am probably also guilty of that. But as long as the things you spend on also increase your lifestyle, and what you can use it for to make your life better (books, courses etc.) this is not so much of a problem. The thing with investments is a bit tricky because I have learned that only if you are able to invest big amounts of money then it is profitable for you.

      To answer your question on achieving wealth: First of all, I would advise you to create a so-called “Conscious Spending Plan” which means, writing down how much money comes in and how much goes out – and do write down what it goes out for! Then in a next step I’d check if there’s anything you can save money on – but don’t get too lost in that because living on a tight budget sucks. Thirdly, you could look within yourself and check what your strenghts and interests are and try to look for ways to make money of that. We live in difficult economic times and the myth of retirement is simply a hoax, we have to find ways to provide at least one extra income on our own.

      Reply
  4. Chris says:

    I actually couldn’t agree more with this article – especially your opinions at the conclusion of the whole thing. I’ve lost count of the amount of times I’ve had to shake my head at people coming out with the “money and happiness” quote…

    Of course you can buy happiness…

    More money = less stress/worry = more freedom and smiling = happiness!

    So refreshing to read a piece written by someone with the same mindset as myself, great article my friend! 

    Reply
    1. Simon says:

      Exactly! It is just annoying seeing people throwing around that sentence and then completely contradict themselves by profiling them with things that – cost money! Money is good, and it is the root of all good – only the lack of money is bad and the root of evil. But as a wise man once said, poor is not he who has little but he who needs more. We can absolutely be happy with a small amount of money but at the same time it is totally ok to not be satisfied with it and to find ways to make some more. 

      Nice to meet you my friend!

      Reply

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