11 Myths About Money That Can Stop You From Generating Wealth

#3. — Millionaires are those who make a lot of money

Photo by mohamed abdelghaffar from Pexels

10% of the world’s population represents 82% of the wealth, according to the Credit Suisse Global Wealth Report study.

What do you think would happen if this wealth was distributed fairly? How long do you think the balance would be maintained?

It is easy that sooner or later than 10% or a good part of it will return to be among the richest people on the planet. And no, in this case, it would not be so much a matter of opportunities, but mentality and beliefs about money.

People with a lot of money think differently and, above all, relate differently to money. And one of the reasons is that they have banished the myths and limiting ideas about wealth and money.

Some of these myths about money are deeply rooted in us and even set what is known as our financial thermostat, while others are misconceptions about what we can or should do to make progress in our finances.

These are the 11 most important money myths and what else is your financial improvement:

#1.- Money is a bad thing (and rich people too)

This is the biggest myth about money, and it is easy to understand why. Many of our problems are related to money, either by its scarcity or by its abundance.

On the one hand, it is common to think that having more money will solve all your problems. On the other hand, it is also important to see money as a perverting element of people. It is the classic “Look how Jaden has changed since he won the lottery or since they made him boss.”

The truth is that money is neither bad nor good; it is more of a tool that can help you achieve your vital goals, depending on how you use it.

Saying that money is good or bad is like assuring that a wolf, a tiger, or a shark are bad because they eat people. This is fine for children and fables but hardly fits reality.

Of all the myths about money, this is the one you should abandon first.

#2.- Money doesn’t give happiness

Having a lot of money does not guarantee that you will be happy; having a lot of financial freedom does. Just think of famous athletes who have gone through depression despite having a checking account full of zeros.
Money doesn’t bring happiness in itself, but it makes it easier for you to find it if, instead of thinking in economic terms, you think in terms of financial freedom.

What money compares to is the time and freedom to be able to do whatever you want, no matter if it’s quitting your job to start a business, taking a sabbatical year, or, as in the case we’re talking about, having a financial cushion to be able to heal your mind.

#3. — Millionaires are those who make a lot of money

What is it like to be really rich? To make a lot of money or to have a lot of money? They may sound the same, but there is actually a subtle difference. In fact, you can make a lot of money, millions even, and not be a millionaire.

Millionaires are people who save a lot of money and have a high net worth that gives them financial freedom. Would you say that a person who spends all the money he earns is a millionaire, even if it is millions per year?

#4.- What matters in life is to have a high salary

Making a lot of money will not make you happier. In fact, there is a point where your happiness will not increase much no matter how much your salary grows to $100,000 per year.

To understand it better: if you earn $8,000 and your salary increases to $12,000, your life will take a leap in quality, but if you go from $120,000 to $125,000, you will hardly notice the difference. This is what is known as the law of diminishing utility.

So the important thing is not to have a very high salary, what really matters is to have a lot of financial freedom. The sooner you abandon money myths like these, the better you can concentrate your financial efforts.