Top 7 Money Lies You Tell Yourself!

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“If you change nothing, nothing will change”- Unknown


♦ Do you constantly take money out of your savings account without paying yourself back?
♦ Do you ever feel like you don’t make enough money to save?
♦ Are you planning for a retirement of your dreams?

If these questions resonate with you at all, stay tuned while we debunk some of the biggest money lies ever told. 

Most of these common money lies stem from not being taught anything differently or being resistant to change in a much different direction.  In order to win with money, you must stop telling yourself these lies which are ultimately hurting your current or future financial health. Choose to make a change and place yourself in a position to win at all times by acknowledging the lies and facing the truth. 

LIE: I have to be rich to invest my money. 

TRUTH: One of the many ways you can jump start your investing portfolio is by investing towards your retirement. Two very important retirement accounts you should know about are your employer’s 401k plan and a Roth IRA. A 401k plan is a type of retirement account provided to you through an employer. Its usually a great way to invest money for your future because your job may also offer an equal or lesser match to your contribution aka. free money. With a 401k plan you don’t pay taxes on the money when it enters your retirement fund, but you will be taxed when you withdraw during retirement. You can invest as little as 3% of your paycheck towards your retirement or more as you see fit. In very affordable paycheck contributions you can start to invest your money for your future. 

 Roth IRA’s work the complete opposite way. In a Roth IRA you get taxed now and enjoy your money during retirement tax free. With a Roth IRA you can invest up to $5,500 a year or $6,500 if your over the age of 50. Can’t afford to invest almost $458 monthly? You don’t have too. You can contribute as much as your budget allows you. Keep in mind that if your closer to retirement you may need to up the speed in order to reach your retirement goal sooner. In order to qualify for an account you must earn less than $118,000 if your single or head of household or $186,000 if your married. For more information on Roth IRA’s, please visit ROTH IRA.

You can even start investing your spare change from daily purchases with micro investing apps like Acorns or Stash. As an investing newbie, I enjoy the fact that I am able to learn the ins and outs of the stock market while investing a small percentage into it. The stock market can be intimidating for most, but what I like about micro-investing so far is that you can get started by simply contributing the bare minimum of $5 a month and increase it as you get more comfortable with the market. We tend to spend more than $5 a day on lunch at work so I think this is an undeniable investment that can benefit you in the future. If you sign up and invest with Acorns today they will match a $5 bonus reward towards your investment portfolio. You do not have to be “rich” to get started you just have to add it to your budget plan and stick to it. 


LIE: I can’t save money, I don’t make enough.

TRUTH: Stop making excuses and start planning the life you want. You should always find a way to pay yourself first on payday and I don’t mean getting your hair and nails done. What I mean by “pay yourself first” is to get into the habit of automatically saving a percentage of your paycheck before paying your bills.  Find ways to cut back on unnecessary expenses so that you can focus on saving money. Cutting off those premium channel subscriptions in your cable package and replacing it with a streaming service such as Netflix or Hulu will save you a lot of money. Use that extra money you found towards your savings goal. If you can make money on the side with a side hustle, I encourage you to save that money as well. Have a bunch of clothes you haven’t worn in years? Sell them. Revisiting your budget and cutting back in certain areas will always leave room for some savings.

If your in debt and trying to save money? The reality is that you shouldn’t be trying to save anything other than an emergency fund. Your main focus should be on saving at least $1000 into an emergency fund and rolling any other money into the debt you have accumulated. For more on ways to raise an emergency fund as quick as possible, read here. 

Even if you can only afford to send $25 weekly towards your savings account, that $25 will eventually become $100 more than you originally had. The point of paying yourself first is to make savings automatic so that you never have to say, “I can’t save money, I don’t make enough”.


LIE: I have to be good at math to budget. 

TRUTH: At minimum you have to know basic math skills such as addition and subtraction to create a budget. A budget is mainly about managing your income and your lifestyle. It is really just a checklist you create to distribute your income accordingly. Once you receive your paycheck, all it takes is subtracting your bills and wants from your income source. Its just that easy! If you noticed how simple that was then you will quickly realize that creating a budget has everything to do with making a plan for your money as oppose to complicated mathematical equations. When you create a budget, you are in control of every dollar you spend. All it takes is basic planning, addition and subtraction to get you started. Need assistance in starting a budget? Check this post here.  

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LIE: Maxing out my credit cards will increase my credit score.

TRUTH: Not true at all! Maxing out your credit cards will completely destroy your credit score rating. When a credit lender offers you a credit card, they want to see whether or not you will be responsible with your line of credit or spend all the money you borrowed recklessly. If you max out your cards and pay the credit card back late, you will appear to be “irresponsible” to credit lenders and your credit report will reflect your payment patterns. Most people tend to spend more than they can pay back which is how we end up in the world of credit card debt today. If you want to maintain a decent credit score the LAST thing you want to do is max the credit card to its limit. You should NOT spend more than 30% the credit card limit and always pay the credit card back in full each month. If you follow this good rule of thumb you will see a huge difference in your credit score. 

LIE: The only way to own a car is to lease/finance it.

TRUTH:  The average car payment in America is said to be roughly around $500 a month. If you save that amount within your monthly budget for two years you will have a total of $12,000 which is more than enough to purchase a used car in full. I know its not normally advertised but it is an option if your willing to delay gratification for a certain amount of time. When you pay cash for the vehicle you can actually own the car right off the lot and sell it when or if you ever want to upgrade. When leasing or financing a vehicle, the person does not technically own the vehicle until its paid for in full. So if you wanted to sell it, you may have to complete paperwork with the bank that loaned you the money in order to transfer it to the prospective buyer. Nonetheless, it is a complicated and lengthy process.   

Just think for one second about a life without car payments. All you have to worry about is gas in your tank, car insurance and an emergency fund for any sudden car troubles. Can’t wait to see that day, right? Me neither. Instead of paying car payments to the bank, pay yourself a car payment each month and save enough to buy a slightly used car or even a new one. 


LIE: I’m young, I don’t need to worry about retirement.

TRUTH: The truth is retirement is not a sprint, it is a marathon. I wish someone would have advised me of this as a young adult. Preparing for the day you no longer have to work at a younger age will put you way ahead of the game in retirement. It is never to early to start putting money aside for your future goals. The good thing about starting young is you get to benefit from something called compound interest. Basically compound interest is gaining interest on top of interest. The more time you have in the market the more you can benefit from accrued interest within your retirement accounts. A person who started saving at 18 years old will more than likely have saved MORE than someone who started at 25 years old. Not only did they contribute more but they would have gained even more interest on top of their initial contribution. Its basically free money! When you take advantage of investment sources such as a Roth IRA (previously discussed) and/or an employer 401K plan your putting yourself in a great position to win financially. You can open up the account and forget about it until its time to revisit it every few years or so. I do recommend raising your contribution anytime you get a work raise or at least 1-2% per year. I know its hard to think past the next month for most young adults, but if you get started early you will be able to retire way before the common age of 65 years old. Making small sacrifices younger will give you the opportunity to control what you do for the rest of your life. 


LIE: I don’t need life insurance.

TRUTH: If you have insurance on your phone, you can also afford to have insurance on your life. Life insurance is one of the best decisions you can ever make to ensure your family is taken care of after a sudden death. Let’s be real, everyone dies. Yes I said it. But sometimes we aren’t always financially prepared to handle the burden of all the expenses associated with burying a loved one, and we shouldn’t have to be. Having life insurance in place allows family to properly grieve in peace as oppose to figuring out how they will pay for these unexpected expenses.

Life Insurance doesn’t have to be expensive either nor is it meant to be an investment policy. Term life insurance policy is much cheaper than a whole life insurance and is highly suggested. A term life insurance policy will cover you for a specific amount of coverage and nothing more, no interest will be accrued. No need to mix your savings and life insurance policy in the same pot, those two can be taken care of separately. A person who is in relatively good health can obtain a term life insurance policy for as low as $10 a month. That’s the same price of a Netflix account to secure your family’s life!

There are insurance policies such as Gerber, State Farm, Geico and even private insurance companies that will give you an instant quote based on your family’s needs. If someone financially depends on you, be sure that the term life insurance policy covers at least 10-12x your income so that they can have enough to cover funeral expenses and much more. 
Don’t leave your family in the dust, protect them by giving them a peace of mind. Doesn’t matter how old you are, everyone needs some form of life insurance. 


These are the top 7 lies that I have noticed overtime, hope that the truth helps promote some change within your own financial journeys. Remember if you do nothing, nothing will change. 

Do you have a money lie that you have believed for far too long? Share them with us below.

If you enjoyed this post, please like comment and/or share with others.  


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4 thoughts on “Top 7 Money Lies You Tell Yourself!

  1. Do you constantly take money out of your savings account without paying yourself back?
    This triggers me! It is just like paying bank and credit card fees! Don’t do it just don’t!

    If you are going or must borrow from your savings then have a plan. A real plan to pay that back- even if it is just $10 at a time.

    My question to myself is “Why is my savings less important than, gas bill, electric bill etc. Value yourself!

    1. So true, I used to do the same thing and then I realized “I’m just as important as the gas bill, as the electric bill, and I need to take care of myself as well. Fast forward now, I enjoy watching my money grow little by little with each goal I set for myself. Planning and creating a budget is key and everything else is possible once you have that established. Thank you for stopping by Tanya.

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