Let’s quickly take a look at six of the many infamous myths that have been created around money as we know it. They’re total rubbish and we’re happy to debunk them.
1. Get A Job So That You Can Become Rich
Myth: When you have a job, you’ll be able to afford anything you want because you’ll have the resources.
Reality: Laughs in brokenness. First of all, you should still get a job- for experience, for sustenance, to thrive. If you’re a salary earner, period? Then that’s it- you’re only a salary earner. But when you decide to do more, that’s when you can become ‘rich’. Basically being rich to us means you spend less than you earn and make more than you actively work for. You have to do more than just work an 8–5 to earn more so do buy stock, do enter the money market- etc.
2. You Have To Be Rich To Invest
Myth: It is only people who have too much money and don’t know what to do with it that start doing investments.
Reality: Why are you dragging billionaire list with Dangote? Because Money Market Funds have interest on them compounded daily, you can withdraw your money at any time. Some salary earners actually put all of their income in there as soon as they’re paid and just withdraw weekly for their expenses. Meanwhile, interest is still dropping daily in that account.
So you see, it is still some type of investment and no they didn’t have to be Otedola to get something out of it. Bottom line, start small and then grow it.
3. A Savings Account is An Emergency Fund Account
Myth: Saving money protects you when you have an emergency.
Reality: Saving money for emergencies protect you when you have an emergency.
Get this- An emergency fund account is a savings account but a savings account is NOT an emergency fund account.
You can save for a new phone, your rent or school fees and you can save for emergency. A lot of us make the mistake of saving blindly and when any emergency comes, we dip our hands in those coffers and just like that, we’re left with nothing. Based on history, which problems/emergencies are most likely to pop up, put money aside for those. That’s all.
4. Lending Money To Your Family Shows How Much You Care
Myth: My family will love me more if I lend them money whenever they ask. I’ll be deemed daughter/son of the year.
Reality: The word ‘loan’ in itself puts people off. But that’s not the point. A lot of the time, we know that the people we’re loaning money to in our families don’t have the means to pay you back. Here’s the trick- dash them the money. When they ask for 10,000 tell them you have X amount because that’s all you can afford and secretly, that’s all you can afford to give without going crazy.
5. ‘When I Earn More, I’ll Start Saving’
Hahaha! Myth: More money equals more money in savings.
Reality: It will surprise you how many wannabe rich men wear all their wealth. They have nothing in savings yet when you see them, you’re drowned in the aura of wealth. This is not about them anyway.
When it comes to saving money, old habits die hard. If you’ve always been a ‘splurger’, there’s a high chance that you’ll continue to splurge even when your bank account is fatter. But! If that old habit was austerity, then you will continue to practice it even when you amass the wealth you’ve set to possess.
This means you need to start to practice the habit of saving money with the 30k that you earn so that it won’t be strange for you to save when you start earning 300k.
6. If It Is Not Expensive, It Is Not Good
Myth: Good things come in expensive packages.
Reality: This doesn’t only apply to wearables but with everything else. You can buy a good car that is not a range rover, you can live in a good house that is not in Lekki. Similarly, you can get the best returns on an investment even if it doesn’t give the best interest rates up front- because you understand compounding interest. The point is that you should cut your coat to your size, not to the size of Femi who has more spending power than you.
We almost never successfully contain our surprise at some of the questions people ask in our emails. Yes it is possible to do more with your money- realistically. If you’re earning 30k, we don’t expect you to be focusing on buying a car in 6 months or start sending your girlfriend to school or buying designer with no other source of income. What we expect you to prioritize is how to multiply that 30k first, how to ensure you are using that 30k well, to stop being broke, etc. Money myths will continue to kill our vibe if we don’t learn to use it well.
Are you ready to master your money? Are you ready to take your finances to the next level? Keep reading and sharing our publications on the REACH Chronicles. OR, go ahead and download our app on the Playstore– you will learn how to track, budget and grow your money.