What makes a person truly rich? Do they follow certain rules in life that give them an extraordinary sense of discipline? Or do they just go with the flow and move like water depending on the situation? Whatever those guidelines are, they are definitely not the clichés most of us tend to believe—and these trite beliefs are definitely the ones that prevent us from joining their ranks. What are these clichés and why do we still cling on to these fantasies? Here are just some of the most common financial clichés.
You only live once
Millennials today may refer to it as YOLO, which is an abbreviation of “you only live once.” This attitude, although it encourages people to live their life in the moment and to the fullest, may actually be actually bad for your financial health. When you have the YOLO attitude, you may have the tendency to do things on a whim, or even if something feels just right in the moment with reckless abandon to the consequences and implications in the future. One potential financial pitfall for people with this mindset is the misuse of credit cards, which may lead them to massive debt.
Investment is only for the rich
For most people, they see investments as financial vehicles only available to those who have enormous amounts of money lying around. Because of this kind of thinking, people will turn their backs on the possibility of generating passive income and having financial freedom. This idea is not healthy, especially that people are closing their doors to a wide array of investment options available even with a modest amount of capital. The moment you shut yourself out of these investments, you are denying yourself of becoming successful financially.
Money cannot buy you happiness
When it comes to money and happiness, there have always been two warring sides: those who believe that money can buy happiness and those who believe it cannot. While it is true, in the broadest sense, that money cannot make you happy in itself, having money can give you the freedom to become happy. When you have the financial power to take care of your necessities, you can spend your time on things that can make you happy. Remember, you cannot pay bills with smiles and folded napkins.
Money on the side is good
People who want to earn more make money on the side by doing the following: selling stuff at work, working online jobs after regular working hours, earning extra bucks using social media account or offering services during free time. While having another source of income is a good thing, keep in mind that you’re better off earning passive income on the side than investing your time and energy in another job. You may earn more money by having a second job, but spent rashly, your extra income will just definitely go to waste. Instead, why not try to save a sizable amount and invest it somewhere?
Retiring is only for the weak
Let’s face it: as we age, our bodies weaken and this will prevent us from doing the things we used to do. Unfortunately, we cannot go on forever working our daily jobs, not to mention the mandatory retirement age for a lot of companies. When we do not set our sights towards retirement, we will have the tendency to live in the present and disregard saving our future nest eggs—and come the day of our retirement, we will be penniless. Who wants that? Nobody. (Learn to save money with this 50-30-20 budget scheme).
Some beliefs, although seemingly harmless, can actually affect the way you look at money and in turn prevents us from getting rich. However, keep in mind that nothing beats wise financial handling.