Myths About Wealth That Keep Us From Managing Money Better

• By Kimball McNeal
• August 12, 2020
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Hammers, shoes and sandwiches all serve a purpose and to see good results you have to use each item appropriately. You can use a shoe to hammer nails but the results may be mixed. You can eat your shoe but it won’t taste good or be as nourishing as a sandwich. Not one of these items is better than the other, they just each do a different job.

Money is not so cut-and-dried…it’s neither good nor bad. It’s a neutral tool that can be used appropriately for good results or misused with not-so-good, or even bad results. How can we continue managing money better to maximize the good results?

Consider this observation from an article at Business Insider’s website:

“The wealthy see money for what it is and what it’s not, through the eyes of logic. The great ones know money is a critical tool that presents options and opportunities.”

Now is a good time to look at how wealthy people think; what are their habits and mindsets; can we glean wisdom that will help us in managing money better -- thoughtfully and to our advantage? Let’s tackle some myths about wealth.

Dispel These Money Myths to help in Managing Money Better

Myth #1: The wealthy buy anything and everything they want.

This myth can keep you seeking that elusive goal of having complete financial freedom to spend on every whim that crosses your mind. Consider these myth-busting facts:

• “I buy three suits every five or so years and own only ten total. That’s all I need.” —T. Boone Pickens, oil billionaire, in an interview with Kiplinger’s

• “The really wealthy are usually not the ones who wear the most expensive clothes, have the latest handbags, or drive flashy cars. In Martha’s Vineyard, you see a lot of people who live in houses that sell for $10 million driving ten-year-old Toyotas.”—A successful Boston plastic surgeon.

• According to Jaime Tardy, author of The Eventual Millionaire, the wealthy choose once-in-a-lifetime experiences over new gadgets. As Tardy told The Week, she knows several millionaires that have old iPhones rather than the newest model.

Myth #2: The wealthy don’t have to pay attention to their money…it takes care if itself.

This is another myth we’ve believed about wealth. The wealthy wouldn’t stay wealthy long if they spent excessively. No matter how much money you earn, you’ll always be poor if you spend more than you make.

“I see people with $10 million, and they can tell you exactly how much they’re saving each month. I think it’s a huge misconception that people who are wealthy are not paying attention to how much they’re saving and spending.” -- Manisha Thakor, the VP at wealth management firm Brighton Jones.

Myth #3: The wealthy use their time to do only fun things.

Consider these myth-busting facts about how wealthy folks spend their time:

• The average workday begins at 4:45 am, or three hours before work; their average weekend morning begins at 6:00 am
• Millionaires may have more time to exercise because they spend less time on social media. The average American spends 14 hours a week on social media compared to the average millionaires’ 2 1/2 hours a week.

What challenges you from these myths? Can you see yourself making any changes to help in managing money better? Let’s think like the wealthy!

Consumer Education Services, Inc. (CESI) is a non-profit committed to empowering and inspiring consumers nationwide to make wise financial decisions and live debt free. Speak with a certified counselor for a free debt analysis today.