10 Myths About Money That Are Probably Holding You Back (and What to Do About Them)

Every time you have money, something seems to happen, right? Sure, you could use a bigger paycheck, and there’s nothing wrong with pursuing that. But your paycheck is only part of the problem. One of the biggest difference between people who have wealth and people who are just getting by is their mindset when it comes to money. And there are myths about money that could be holding you back .

Here are the 10 biggest:

1. Money can’t buy happiness

It’s a myth that money can’t buy happiness. Of course, money itself is not the source of happiness. However, money can be an amazing tool to help you live the life of your dreams, take care of those around you and make a positive impact on the world. It opens up possibilities and opportunities that those without it might never experience in their lifetime. Money is a necessity– a tool– and if you’re priorities are right, it can solve problems and create opportunities. (Of course, if they’re not, it will create problems and destroy opportunities). 

2. Wealthy people are smarter and more hardworking

While it’s true that wealthy people often work hard for their money, it’s not the only reason they have money. Many wealthy people also have a different mindset about money, which allows them to make more of it. They make smart choices with their money, but that doesn’t mean that they are any smarter than you… they just have a different understanding of it.

For example, they may be more likely to take measured risks, invest in themselves and think creatively about how to make more money.  Many wealthy people have a mindset of putting the money they make to work for them (to make more money). They use money to create more time to enjoy their life, rather than spending time working just to make money to enjo

3. All the good jobs require a degree

While it’s true that having a degree often leads to better-paying jobs, it’s not the only way to achieve financial success. 

In fact, recent years have seen many people with degrees are struggling financially. And even leaders of high-tech companies like Google and Tesla have said that a degree is no longer going to be a requirement for their jobs. 

There are also many jobs that, traditionally, don’t require a degree that can provide a solid, comfortable living– jobs like welders, plumbers, electricians, where most people learned their trade on the job. A lack of a degree doesn’t have to hold you back… you just need work ethic and a willing ness to learn by doing. 

4. It’s too late to make a career change

When you think this, you stop taking risks and exploring new opportunities that could lead to a better job and more money. You also limit yourself by not considering other options that may be available to you. 

Instead of thinking “It’s too late”, focus on what you can do TODAY to move closer towards your goals.  There IS a path that can get you from where you are to where you want to be. You just have to find it (or build it). Take one step at a time and don’t give up on your dreams!

5. You need money to save money (the paradox of thrift)

When you believe that you need money in order to save money, you are putting a limit on how much you can save. You might not even bother trying because you think it’s impossible.

On the other hand, if you change your mindset and realize that YOU are in control of your finances, you can start saving today– no matter how little money you have. 

Saving doesn’t have to be complicated. Start with a budget so you know exactly where every dollar is going to go (say, into your emergency fund instead of the drive-thru) before you even get your paycheck. 

6. Saving is boring because it doesn’t make you anything; we should purchase what we want now and pay for it later. Who knows what tomorrow is going to bring? 

There is a myth that saving isn’t worth it because sure, you have it today, but that doesn’t mean you’re guaranteed the same tomorrow. If you don’t make the most of the money right now, something will come up and MAKE you give it up. 

While it’s true that sometimes life just doesn’t seem fair, that mindset alone will make it so that you can never get ahead.  One of the most important things in life is financial stability and security. It can be the solid ground that helps you get your feet under you.  But you’ve got to believe that something in life is permanent and worth believing in. That thing is not money– it’s you and the future you aspire to. 

When you do that, money becomes a vehicle to take you there. 

7. Racking up debt is fine. It’s how the American Dream works. 

Racking up debt is often seen as a necessary part of the “American Dream”. After all, if you want to buy a house, a car, and have all the other trappings of success, you’re going to need to go into debt. 

But there’s another way. You don’t have to saddle yourself with years of payments and interest rates that are through the roof. It may take longer, but it’s worth it in the end because you’ll OWN what you’ve earned. And there’s nothing more satisfying than that. 

8. Riskier investments are the best way to become wealthy 

Risky investments may seem like the best way to become wealthy quickly, but in reality they can lead to losses and financial instability. 

While there is certainly potential for gain with risky investments, there is also a high chance of loss. In order to be successful with investing, it’s important to carefully research and understand the risks involved before making any decisions. 

It’s also important to remember that wealth doesn’t happen overnight– it takes time and patience to grow your money safely and securely. Jumping into high-risk investments without doing your homework can lead to financial disaster, so be careful!

9. Banks are reliable sources of long-term savings accounts 

When it comes to finances, most people believe that banks are the most reliable sources for long-term savings accounts. 

However, this mindset can actually hold you back from achieving financial success. Banks may be reliable in the short term, but they are not always reliable in the long term. In fact, the long-term returns on bank-managed savings accounts have a dismal track record versus other savings vehicles.

10. If someone has a lot of money, it’s because someone else doesn’t have enough

Believing that wealth is a zero-sum game– that if one person has a lot, then another person must have less–keeps people stuck in a state of poverty consciousness. 

When you think this way, you don’t see the possibility for your own financial growth. You don’t think that it’s possible to become wealthy, because you believe that wealth is finite. 

But this isn’t true! There is room for everyone to be successful and to achieve their goals. When you change your mindset and start believing in yourself, anything is possible.

Beliefs are habitual thoughts that can be difficult to change. Here are important steps to changing your limiting beliefs around money:

Audit your current beliefs

Start by taking note of what is currently going on in your life with regards to money. Ask yourself the following questions: 

What are my financial fears? 

What are some common thoughts that I have about money? 2. Be aware of the language you use to talk about money

Look at how you talk about money in your day to day life. How do you refer to it when you’re speaking with friends? Do certain words or phrases come up on a frequent basis? Keep track of them– they will let you know what your current mindset is on the subject of money. 

Identify your beliefs

Take a look at your responses from question one and note some of the common phrases you use. Do these thoughts seem to ring true for you? If so, why do they tend to pop up for you? Are they fixed or ever-changing? 

Once you have some idea of what your current money beliefs are, it’s time to begin the process of changing them. 

Figure out why you want to change them

Money beliefs can sometimes become so ingrained in us that we don’t even realize they exist. They often happen without our conscious awareness and can be difficult to identify and pinpoint. 

It’s important to figure out why you want to change your limiting money beliefs . Are you wanting more financial stability? Do you feel like there is something holding you back from achieving goals or taking risks? 

Once you know why you want to change your money beliefs, it will be much easier to do so! 

Find evidence that proves the limiting belief is false

Use your responses from question one and two to determine common themes in your current money mindset. Looking at these themes, try and find evidence in your own personal experience that shows the opposite of what you believe to be true.

Finding evidence in your life is a great way to start focusing on positive change when it comes to your money beliefs. 

Create new, positive statements that will replace the old ones (e.g., when you think “I can’t become wealthy because I don’t make enough money” try thinking “My success is inevitable because I’m willing to work for it”)

Once you have identified your current thought processes and found evidence to the contrary, it’s time to create positive statements that will replace the old ones. Remember, these new beliefs don’t have to be absolutely true yet– they just serve as practice for changing your long-term mindset around money. 

Here are some examples of positive money affirmations:

I am worthy of wealth. 

Money can create opportunities for me to do good in the world. 

Repeat your new statements to yourself daily

After you have created new positive money affirmations, start repeating them to yourself daily. Keep track of any challenges or resistance that might come up for you along the way — this is natural! Taking note of your negative thoughts and feelings will help keep you on track with your affirmation practice.

Remember that the process of changing a belief takes time and patience, so be patient with yourself!

Changing your money beliefs will take time! The process of changing long-held beliefs probably won’t happen overnight, so remind yourself that you are doing the best thing for your life. Be patient with yourself and make sure to celebrate your successes along the way!

Keep in mind, money is not a force for good or for evil. 

Money is a tool– it’s how you use it and why that determines whether or not you’re successful in achieving your goals and whether you are a jerk to others or not in the process. 

When you allow yourself to fall victim to these myths, you create a perception of reality that has little to do with money itself and everything to do with letting fear and superstition keep you locked in place where you are. 

You will not achieve your goals of financial success if you let the money myths demoralize or stop you from trying. If you give them power, then you know exactly what the future holds. All you have to do is look at your past and prepare yourself for more of the same. Are you really okay with that?