8 Money Myths

8 False Ideas About Money

I grew up on a farm in Nebraska. My family has always worked hard to make money, so I always thought that working hard meant making money. I had no idea that what I thought was the opposite of the truth. As I learned more about people and money, I realised that the people who end up with more money are the ones who make their money work hard for them, not the ones who work hard for their money. Since I made my programme to make people rich, I've learned that I wasn't the only one. A lot of people believed this false story.

Our parents, teachers, and other adults in our lives taught us what we think about people, relationships, food, and health, among other things. And it goes back even further, beyond them, to the way they lived or what they learned from their parents, and so on. These beliefs are deeply rooted, and because they are often unconsciously held, the cycles keep going until someone breaks them. You can put an end to it. There are many different ideas about money, but my research has shown me that a few of them are the most common.

Money is hard to get. Some of us have parents or grandparents who lived through the Great Depression, a time that made an entire generation think that there wasn't enough to go around. These people taught their kids that money was hard to come by and that when it did, they had to spend as little as possible and save as much as possible. If you've ever thought, "A penny saved is a penny earned," "Don't dip into savings," or "We can't afford it," you have this mindset, and bad times are coming. Money doesn't come from nothing. Because of these threats, people are afraid of money.

Money is bad, evil, or dirty. Some of us have parents or grandparents who think that green is the colour of bad things. They've only ever seen the bad things about the rat race, the bad things about chasing money, and the arrogance and excess of those with too much money. Some people even think that rich people are bad. Many books and movies show that it's the bad people who make the most money. The weak will own the world. These prophecies make people feel like they can't do anything about money.

Each month, money comes in. The most common way to make a living is to work for a company or as a skilled professional and get paid either weekly or yearly. In the past, this was the safe, sure thing that heads of households needed. But the level of risk was usually balanced by the level of reward, which was also low. Working for a company or as a skilled professional is a limited option for most people, even those who do very well. The average CEO of an average company who makes six figures a year will still only see a small increase in pay over the course of his or her lifetime, except in the most extreme cases. Slow and steady usually wins. These stories teach people to be careful with money.

I don't care about money. Some people think they don't deserve to be rich or that there are only a certain number of millionaires to go around. Everyone has the chance to get rich and be financially free. It is our right to be rich, and I hope that people take their space and know they deserve it. When you make money, you are not taking it from someone else. This isn't Bonnie and Clyde. Visit the Bank. By making money, you give yourself a bigger chance to help others, which is your duty. They are better than me. Such sayings make people feel bad about money.

Money is something men do. Men used to make and take care of the money for the family. That wasn't that long ago, and some of you may have been taught that way as kids. Even though there are gender differences, such as the fact that men carry more money and are more likely to invest than women, these differences are not caused by genes. Instead, they are the result of years of conditioning. Women and men both need to know that money doesn't care about who you are. "Wealth Diva: A Man Is Not a Plan" is one of my programmes that young people who want to build wealth really like. This seminar is a must for every man and woman, as well as the sons and daughters they love. He should bring the bacon home. This kind of thinking makes people not care about money.

Money makes you feel better. Some people feel better after going shopping; a new blouse can solve any problem. We live in a consumerist culture right now, and many of us use money to fill the empty spots in our lives. Some people grew up feeling like they had a right to money because they thought their parents or a trust fund would always pay for everything. As a result, they didn't take care of what they had and ended up wasting it. This is a cycle that doesn't lead anywhere good. The new car wears out, the closet gets full of clothes, and the playroom gets full of toys. This doesn't mean there aren't great things to buy and spend money on. Money should be fun, after all. But like overeating, spending too much money on the wrong things can make anyone feel tired and down. Shop until you can't anymore. This constant barrage of messages makes people treat money with disrespect or indifference.

Always, money is a threat. Too many of us always had trouble with money. Bills were a pain, trying to keep up with the Joneses was tiring, entrepreneurs were thought to be crazy, and one's place in life was, well, stationary. It would be worse to get rich. Money and all the paperwork and responsibilities that come with it can be so hard. These ways of thinking about money make it seem like money is a problem, not a solution. Surviving is hard enough, let alone thriving. This kind of pessimism makes people feel bad about money.

Don't talk about money. Many of us have been taught that talking about money is rude. People think that money and financial success or failure are personal things that shouldn't be talked about or taught. We didn't often ask our parents how much money they made, and some people still don't know how much their spouses make. The results have had unintended effects and have made it so that very few people talk about money and finances in a real way, which is what they need to do to learn and succeed. We don't talk about these things in polite company, dear. This kind of scolding makes people think they don't know anything about money.

In each of these situations, it's clear that unless your parents made a conscious decision to think and act differently, they taught you to think and act like them. If you decide to break this cycle, you will be able to teach your children to have better ideas about money and a healthier relationship with it. As you learn more about what you believe, you will work to change it. You will change the way you act by taking the steps in this process and getting help from mentors and trusted friends. By letting your mentors and trusted friends know that you want to change your beliefs and asking them to help you find the limits you may be putting on yourself unconsciously, you will teach your brain to follow your actions. Start by restating what you believe. For example, if you find out that you believe any of the things listed above, you will

1. Instead of saying, "Money is not for me," say, "Who better than me for money to come to?" This will give you more power over money.
2. Change "money is scarce" to "money is plentiful" and encourage a brave attitude toward money.
3. Instead of saying "money is good medicine," say "money is a tool that helps make my life better." This will help you treat money with respect and care.
4. Change the phrase "money is evil, dirty, or bad" to "money is good and acceptable," and build a relationship with money that is more personal.
5. Instead of saying "money is a man thing," say "I can and will learn about and understand money." This will help you have a more thoughtful relationship with money.
6. Change "talking about money is taboo" to "talking about money is important" to learn more about money.
7. Instead of saying "Money is a threat," say "Money is a solution" to have a better view of money.
8. Change "Monthly money comes" to "Money comes from a variety of sources" to make your relationship with money more flexible.

You can see how much better it is to be brave, hands-on, opportunistic, empowered, thoughtful, respectful and concerned, positive, and knowledgeable than to be afraid, hands-off, cautious, defeated, apathetic, disrespectful and nonchalant, negative, and unaware. You can do what you want, and it looks like you're headed in the right direction. By deciding to take the first step, you've already done a lot. By deciding to start right away, you have given yourself the chance to learn more about money and change your life.

Copywritten by (c) 2006 Loral Langmeier, from the book The Millionaire Maker by McGraw-Hill, December 2005, $24.95 US/$0.00 CAN, 0071466150

Loral Langemeier is a master coach, financial strategist, and team-made multimillionaire who helps thousands of people every year. She started the coaching and seminar company Live Out Loud, where she teaches her programme Wealth Cycles.