Money smarts are vital in today’s world. Yet many people who consider themselves financially literary may not realize that many of their beliefs are downright backwards. The truth is that there are more myths out there than you might like to believe. 

Unfortunately, many of these misconceptions can lead to poor financial planning. To help you build your wealth, and ensure you live comfortably when you retire here are some of the biggest money myths you should know.

More Money Means Less Stress

One of the biggest misconceptions that people have about money is that the more of it you have the less stress you have.  Unfortunately, it’s often quite the opposite. The more money that you acquire, often the more responsibility you have, and the more pressure you have to preserve your wealth. 

And although having more money can certainly offer more comfort in life, it does not automatically equate to less stress. In fact, several studies have been done that reveal that the happiest people in the world are the ones with modest resources. Happiness does not always equate to the amount of money you have in the bank.

You Need a Lot of Money to Invest

A lot of people are convinced that you can only invest if you have a lot to throw in. Yet, this couldn’t be further from the truth. Investing is for people of all different income levels, and even a small investment each month can make a considerable difference over time.  The key is having the right strategy in place and knowing where the best places to put your money are.

Debt is Evil

Most people have heard at some point that all debt is bad and should be avoided at all costs. And while it’s true that excessive amounts of debt can be detriemental, some forms of debt are considered a wise investment.  

For example, buying a rental property can promise a handsome return on your investment. A student loan is another example of strategic debt. Student loans are a debt yes, but they ultimately lead to a higher paying job. The idea is understanding which debts are worth it, and which ones are better left alone. 

Entrepreneurship is the Only Way to Get Rich

The American dream is all about paving your own way and creating a name for yourself. And while many entrepreneurs have managed to make significant fortunes working for themselves, many people have reached extreme success by working for someone else. Climbing the corporate ladder can also lead to significant success and wealth. It’s all about how you effectively play your cards right, and you may even find that working for someone else can pay off even more.

By understanding these myths, you can empower yourself to make more informed financial decisions. Remember, not everyone has the same relationship with money, and your own financial journey may be entirely unique!