How we think about money- Busting Money Myths (1)
Money is one of the few things everyone never stops thinking about. We are either thinking of how we need it, how to get it or what to do with it. Our world view, orientation to life and many other factors contribute largely to our perception of money. It begins with watching our parents handle their finances to the books we read and the experiences that shape our life. Largely, many of us have come to believe popular money myths and have taken financial decisions based them.
Which of these myths do you agree with?
– If you earn more you will be rich
– My partner will always take care of me
– Inflation is not a significant problem
– Women are not good with numbers
– Money can’t buy happiness (neither can poverty)
– If you work hard you will be rewarded financially
– Having money means having fewer worries
– Financial matters are too complicated to understand
– Financial planning should be left to the experts
– Credit makes purchasing easy
– Money is the best indicator of success
They are not altogether untrue but they are also not credible enough to form the basis of the financial philosophy from which we take financial decisions.
For instance, the assumption that earning more will culminate into wealth is probable until you consider factors like inflation and increase in family size/cost of living alongside increase in income. While many married women, perhaps even men, rely on the joint force of their spouse’s income combined with theirs to make financial projections, occurrences like job loss, loss of affection or even like divorce or demise easily change the tide.
Recent experiences in the country have more than proven that inflation can quickly reduce the value of money, making a sum that would have been abundant less than enough. Women all over the world are successfully steering the financial wheels of large organisations, easily debunking the myth that women are poor money managers. Can money buy happiness? That depends largely on what happiness means to you. Whether money can reduce your worries or not is a function of the kind of worries you have. Your definition of success determines the possibility of being an indicator of how successful you are. While many have built conglomerates on borrowed funds, many have also dug their way into burdens of endless debts.
We could go on about the myths and it will only get clearer that these assumptions are hardly the foundation for financial freedom. Issues regarding finances are not too complicated for everyday people to decipher neither should we make financial decisions haphazardly.
In the next edition of these series, we will pinpoint critical factors to consider in our relationship with money, with regards to achieving our financial goals.
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