Financial Myths That Will Make You Poor
Most people approach personal finance the way they would follow a trail in a forest. The more worn and marked the trail is and the easier it is to follow, the better the likelihood it’s a good trail.
Unfortunately, that well-worn path can lead right over the cliff unless your willing to do your own reconnaissance and keep your eyes open while you’re on the hike. That well-worn path might also disguise a simpler, more direct route.
Over the years, a series of financial myths and fiscal half-truths have been created and spread throughout the personal finance community that can drive behaviors that can actually lead to poverty-generation, not wealth-generation.
Here are a few of those myths:
Myth: Retirement accounts aren’t designed to help you retire.
Truth: They’re designed to keep you in the workforce as long as possible.
Myth: Falling markets threaten your wealth.
Truth: Money can be made in any market.
Myth: A good salary provides financial freedom.
Truth: A good salary can lead you into financial ruin.
Myth: Your tax return is free money.
Truth: It’s a no-interest loan to the government.
Myth: Only full-time traders make money trading the market.
Truth: New technology can level the playing field for part-time traders.
Financial myths are different from the myths of the world’s great religions and cultures. Myths typically are little fictional stories that make you wise. Financial myths are little fiscal stories that make you poor.
We’ll start our in-depth look at these financial myths–and hopefully set you on the right path to financial freedom–tomorrow.
Related posts:
- Five Myths Your Boss Desperately Wants You To Believe
- Myth: A Good Salary Provides Financial Freedom
- Myths about Stock Trading
- Myth: Only Full-Time Traders Make Money
- Weekly Wisdom: How To Be A Rock Star And Other Financial Insights
Related posts brought to you by Yet Another Related Posts Plugin.
is one of my favorite financial books of all time. It's an allegory about a guy who has a terrible job, and how he overcomes challenges to achieve his dreams.
I agree with all. Falling markets give you a chance to increase your position so that when the market goes back up…you win BIG!!!
Hi Chiko77–
Can you imagine someone walking through a store and saying, “Oh my God… everything is one sale! I’m never shopping again! It’s too scary.”
That’s what’s happening now and it’s definitely something I want to cover during this series.
Myth: Your tax return is free money.
That is the truth, that is why it is best to have a C corporation so you can write off items and not have the government hold your money all year.
Right on. It’s a good idea to look into any legitimate tax savings maneuvers, I think.