5 Money Myths All Women Should Avoid
There’s nothing wrong with you if you’ve bought into widely held beliefs about money. It’s easy to do. We’ve all been conditioned by our family, friends and culture.
Making bad financial decisions won’t get you where you need to be. Once you know the truth it’ll help you make better decisions moving forward. Here are 5 money myths to avoid.
Earn more money and you’ll be wealthy
Yes and no. It’s not how much you make it’s what you do with it that matters. For many people, no matter how much they earn they’ll never have enough. The more they make the more they spend and the further into debt they go.
Instead of spending money as you make it try holding onto it. If your income increases put a large amount of that money away. The amount of money you save and invest will determine your financial wealth. Create a budget and have a plan for your money. Your plan could include saving to spend, building an emergency fund, investing and saving for retirement.
Your partner will take care of you
Most women don’t want to depend on their spouse for financial support but many end up in that exact position. Many women leave the workforce to raise their kids and take care of their family full time. While you may never have to worry about anything let’s look at the statistics; 50% of marriages end in divorce, women typically earn less than men as we get older and we live longer. Are you willing to take a risk with your future?
Even if you never go back to work you should still have a plan in place. Take action by knowing something about your finances, if you decide to stay home with your kids learn how to save for retirement as a stay at home mom, teach yourself how to invest in little and big ways and keep your head out of the sand!
You don’t need a budget if you keep track of your money
A budget is more than just keeping track of how you spend your money. Budgeting can help you save for retirement, plan for a vacation and pay off debt. Instead of looking at how you historically spent your money it will help you look forward and plan for what you’ll do with what you earn. A budget will help you make decisions about your finances and future.
You have plenty of time to save for retirement
Many women think they’ll catch up on retirement when they start making more money but the earlier you invest the more time your money has to grow. Nothing can compete with the power compound interest. There is a good chance we won’t be able to depend on social security and unless you plan on working forever you need to start saving for retirement today.
More money will make me happier?
If you’re not having fun and enjoying your life now having more money won’t help you. Yes, money is a fantastic tool that can open many doors. It will create more opportunities that you wouldn’t necessarily have but liking who you see if the mirror everyday doesn’t cost a thing. I’m not going to try to convince you that being broke is a blast because it’s not but having money and loving yourself is key to feeling good no matter what.
Do you have any money myths that have been holding you back? Leave your comments below.