{"id":3851,"date":"2023-04-10T20:02:16","date_gmt":"2023-04-10T20:02:16","guid":{"rendered":"https:\/\/www.beyondfinance.com\/blog\/?p=3851"},"modified":"2023-04-10T20:02:42","modified_gmt":"2023-04-10T20:02:42","slug":"telling-the-truth-10-money-myths","status":"publish","type":"post","link":"https:\/\/www.beyondfinance.com\/blog\/telling-the-truth-10-money-myths\/","title":{"rendered":"A Debt of Gratitude: Telling the Truth About These 10 Money Myths"},"content":{"rendered":"\n

No matter how good someone\u2019s credit score<\/a> looks, money myths have fooled everyone<\/strong>. Have you ever met someone who believed keeping money stuffed in the mattress for a rainy day was a good idea? What about people who thought allowing the bank to touch their money would only cause problems? <\/p>\n\n\n\n

Those money myths\u2013and many others just like them\u2013have been shared by people who mean well and want the best for your financial wellness. Unfortunately, they have the opposite effect, which makes paying for gas and groceries a painful experience. <\/p>\n\n\n\n

Isn\u2019t it funny that anyone who tells you that money is the root of all evil doesn\u2019t have any? <\/p>\n\n\n\n

Nothing stresses us out like money<\/a>, which is where money myths originate<\/strong>. Whether the Great Depression was drowning Americans in debt or the inflation we have been experiencing in the wake of the Coronavirus pandemic, people come up with new ways to help everyone hold on to their money. Or, at least, they think they are doing that. <\/p>\n\n\n\n

Napoleon Hill once said, \u201cMoney without brains is always dangerous.\u201d So are those who mean well but struggle with debt themselves. These money myths may surprise you but read them closely, and they will educate you. <\/p>\n\n\n\n

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It’s all about those Benjamins!<\/figcaption><\/figure>\n\n\n\n

The more money I have, the happier I will be<\/strong><\/h2>\n\n\n\n

No, money can\u2019t buy happiness, but a few extra dollars can buy furniture or entertainment or put a smile on your face. That\u2019s not what the king of all money myths means. Millionaires aren\u2019t too much happier than the rest of us. Why? Because life comes at them in the same ways. <\/p>\n\n\n\n

Have you ever seen a story on a broke former athlete? It\u2019s sad because the world was in the palm of their hand. What\u2019s important to note is that no one\u2019s hands are that big. There is always something missing. The more joy <\/em>you have, that\u2019s the happier you will be. <\/p>\n\n\n\n

Carrying high balances help build your credit much faster<\/strong>.<\/h2>\n\n\n\n

Whoever made that one up never kept their high credit. They lost the minute those balances broke a threshold called the \u201cdebt-to-income ratio<\/a>.\u201d The magic number is 30%. If you have a checking account with $1,000 in it and spend more than $300 on credit cards, the credit bureaus see that as excess. <\/p>\n\n\n\n

Is it fair? That\u2019s subjective, but that is their threshold, so do your best to keep that ratio below 30% of all credit usage. Again, that is for unsecured debt only. <\/p>\n\n\n\n

Emergency savings don\u2019t matter<\/strong>.<\/h2>\n\n\n
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\"Is<\/figure>\n<\/div>\n\n\n

This statement couldn\u2019t be more incorrect. Have you ever gone to start the car and it wouldn\u2019t turn over or noticed a flat tire? What about that medical procedure that surprised you? The only time those unexpected but necessary expenses hurt is when you don\u2019t have the money. <\/p>\n\n\n\n

Ask around. That\u2019s most of the time for most of the people you know. That money isn\u2019t your retirement or school loan. If you lose a job or a vehicle, that\u2019s called an emergency. You should set aside money for only that. <\/p>\n\n\n\n

Credit scores are only essential to borrow money<\/strong>.<\/h2>\n\n\n\n

Is that so? Since COVID, have you noticed more employers ask for access to credit history? It hurts for people trying to rebuild their credit, but that could be a shocker for those who don\u2019t care about FICO scores. What about security clearance, insurance premiums, or even the interest rate on a home? All those life situations require a look at your credit history. <\/p>\n\n\n\n

I\u2019m only working until I\u2019m 65. <\/strong><\/h2>\n\n\n\n

Sure, if you are prepared for that. Are you? Do you know that the magic number is different for all Americans? Retirement happens when you\u2019re <\/em>ready. What does your savings look like? Do you know how your 401K and social security will help in the future? Your number may be 70 or higher. It could be 62 or lower. Only you will know, but only if you do the research. <\/p>\n\n\n\n

Having a large amount of debt is standard these days.<\/strong><\/h2>\n\n\n
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\""You<\/figure>\n<\/div>\n\n\n

Yes, that is true, but here\u2019s another question: Why must it be normal? Debt.org shares some startling numbers about what Americans owe:<\/p>\n\n\n\n