Common Misconceptions about Money

credit:freepik

The truth about money that is far from the haunts our imagination fed by so many Hollywood films or biographies about new rich that almost got their goods by “luck”. Thanks to all these beliefs combined you have finished creating multitude of opinions wrong about the vile metal.

According to Maggie Baker, psychologist relationship problems, money and wealth, these attitudes toward money are created in childhood and did not even realize we are wrong. Come to think rationally about money and yet have to possess irrational behavior.

The following are 6 Common Misconceptions about Money. So let’s analyze some of these misconceptions one by one.

1. The money will make you happy

If, as the popular Facebook page, I also prefer to mourn in a Ferrari, but as Kathleen Gurney, CEO of Financial Psychology Corp.

“It is not money that makes you happy. If you want to know how to use it as a vehicle to create happiness, you will use it indiscriminately and never accomplish what you value”

According to Gurney it is necessary to have personal objectives, goals and aspirations, without being influenced by the money. That is, no money makes you happy, but the proper way to spend it.

2. Money is power

Many people believe, wrongly, that the money is used to gain power and raise the self-esteem. According to Maggie Baker if we give this priority to money and then we lose (being laid off, for example), not only lose money but also self-esteem, because we would be mixing personal wealth and self esteem.

That is, we cannot give more value to money than you have. It’s a material and unsentimental.

3. There is never enough money

According to Gurney, this is a very common belief and rationalization attempt to avoid facing the truth as opposed to what we would like. Moreover, according to the psychologist says, people tend to go into debt trying to get to this point of course “enough.” Really there is no such limit enough, because we always want more.

To avoid this, the advice is to focus on the truly important things, such as survival and security. Then you have to think where to go adding “extra” money, what we call “quirks” or properly manage not to end up borrowing for wanting more than is necessary and useful.

4. Invest in the same everyone else is doing

Many times when we have more money than we spend, we tend to try to reverse it, always looking for profits course. But once at this point is not good idea to rely on the financial decisions of others, as some investments can end up hauling nonprofit and debt.

Often it is difficult to distinguish what is prudent and best for us just what is popular. That is, many times “follow the herd “ is not the best option.

5. Financial gurus give the best advice

In this case, like everything else, a “guru” knows a lot about a subject, and give you tips keeping with that theme, but each person is unique and personal situation at one time also . Here you should consider several factors such as goals, age of the person, risk tolerance and so on.

As Baker says, is good to seek advice, seek opinions from friends and others, but it is very important to be cautious and think straight.

6. Does not take much effort to learn to manage money effectively

Finally we return one of the first sentences of this article, namely the influence of Hollywood on our beliefs about money. Many times it seems that there are people who make money without more, as if from nowhere, and that is as easy to win as administer.

Hopefully, right? Obviously this is not true, because money management a real commitment and attention to detail, as Baker says:

“It is sit and look at all the uses of money in your life, such as invoices, spending habits and goals. It is a big mistake for a person living with the family to do anything with the money without consulting your partner. And, `of course you need to put some attention to finances every day”.

Regarding this last point, if you possess a smartphone, you know that there are several types of applications that will make it much easier to know how much and how we spent our money , gaining control over that and could make the necessary changes in our routine if we want to save or spend it more effectively.