There are seven major money lies that almost everyone believes.
It’s a shame that these misconceptions have become the doctrine du jour because they are keeping people poor.
Today I want to call bluff on those seven money lies and show you why believing them is preventing you from becoming rich.
Lie #1: You Need Multiple Income Streams
Contrary to popular belief, having multiple streams of income as a path to wealth is not the norm among the truly wealthy.
Most wealthy individuals didn’t get there by juggling side hustles.
Instead, they excelled tremendously in one area.
They focused all their energy, resources, and creativity on making one business, one skill, or one investment work exceptionally well.
Spreading yourself too thin generally isn’t a good idea.
Lie #2: Aim for a Big Tax Return
This might sound wise at first—a big tax return means you get more money back at the end of the year, cool!
Wrong.
Wealthy people understand that giving the government extra money to hold onto means it’s money they can’t use throughout the year to earn more money.
Every day your money isn’t in your control is a day you’re not investing it in your growth.
Smart money management involves minimizing your refunds by adjusting your withholdings to better align with your actual tax liabilities.
Lie #3: Your Biggest Expense is Your Home or Education
What do you think your biggest lifetime expense is (or will be)?
Many would say a home, education, or even a wedding.
But all those responses are wrong in most cases.
The greatest expense over the course of your life is taxes.
Yes, taxes will consume more of your income than any other expense.
My advice?
Figure out how to legally minimize your tax burden through smart investments and business decisions.
Lie #4: Build Your Credit ASAP
We often hear about the importance of building good credit, but here’s a different perspective: wealthy people don’t get rich by borrowing money.
They accumulate wealth through saving and investing, not through debt.
Avoiding debt means you have more control over your income.
Remember, every dollar not spent on debt repayment is a dollar that can be saved or invested into your future.
Lie #5: You Gotta Look Rich to Become Rich
Please do not “dress for success” to the extent that you spend money you don’t have on luxury items you don’t need.
Many of the most financially successful individuals live below their means, especially in the early stages of wealth accumulation.
Lamborghinis and Louis Vuittons don’t build wealth.
Prudent investing and spending do.
Lie #6: A High Salary Will Make You Rich
While a high salary can certainly provide financial comfort, the richest among us know that wealth comes from being paid for the results we deliver, not the time we spend in an office chair.
Opting for performance-based opportunities can lead to greater earnings than a fixed salary ever could.
Plus, results-based compensation incentivizes the type of innovation that can lead to even greater financial success.
Lie #7: You Must Attend College to Become Truly Wealthy
While education is crucial, the notion that college is the only path to financial success is outdated.
Don’t get me wrong—college isn’t bad! But going into massive debt to pay for college is.
Worse, college doesn’t teach you the practical skills necessary for financial success.
Learning from real-world experiences, mentors, and self-directed study can be just as valuable, if not more so.
These seven money myths do a disservice to the hardworking, honest people everywhere who dream of financial freedom.
Read through the list of lies again and identify one or two that you’re going to liberate yourself from today.
The quicker you stop believing these lies, the quicker you can make better decisions to reach your financial goals.
Societal norms are strong —so take heart and take back control of your wallet.
