It’s not the things you don’t know, but rather the incorrect things you believe, that cause many of the real challenges in life. In other words, a few misconceptions can become a detriment to the financial success and health of your work at home business.
I’ll admit it, finances are not my strong suit. I started out doing freelance graphics for several years before starting my own business in 2009, you can read more about my bio here. It took me a few years to build a healthy business because I just had certain beliefs and misconceptions stuck in my head. Maybe you do too. So hopefully this article can help you on your way.
Enhancing your understanding of money and personal finances is an effective way to get on the path to prosperity.
Avoid These Money Myths
1. Income Equals Wealth
People that make more have a tendency to spend more. Lottery winners are notorious for losing everything. Many of the families that earn over $1 million per year manage to outspend their income. You can earn a very high income and still live paycheck to paycheck.
Wealth is what’s left over after you’re done spending. The more money you’re able to invest in appreciating and income-producing assets, the more you can expect your wealth to grow. A high income provides opportunity. It doesn’t provide a guarantee.
Look at it this way. Every dollar has an opportunity to “burn or earn.” You can either burn a dollar – meaning you spend it on something that does not pay you back in any way. That dollar is spent and gone. OR you can have it earn for you – in other words you invest it. You invest it in CD, savings, stocks. Or you invest it in education, tools for business, things to help your business grow. Wealthy people have most of their money earning for them.
2. More Money Equals Greater Happiness
Money has nothing to do with happiness. Studies have consistently shown that more income results in greater levels of happiness to a point. The break-even mark appears to be $75,000 per year.
If you’re earning less than $75,000, you can expect your feelings of happiness to increase with a greater income. If you’re already earning that much or more, more money isn’t going to make you feel any better.
If you think money is going to make you feel better or happier, take a step back and try to discover what that money actually represents. Whether it be greater time freedom, more time with your family, time and means to travel. Then focus your goal on that, rather than just money. When you focus on what you want to feel, the money has a way of working itself out.
3. Only The Rich Stay Rich
There are many examples of this statement being false. The truth is that most people who have money are willing to do what others simply will not do. There are cases where rich and wealth is handed down through generations but it is not as common as good ol’ fashion work ethic and stick-to-it.
4. I’m Not Smart Enough to Make Money
Let’s start out by agreeing there are all kinds of smart out there. Just because you are not good with numbers doesn’t mean you’re not smart enough to make money working at home.
There are a ton of ways to work from home and most of them require no more than a high school education.
Talk with entrepreneurs in your own home town or online and you will more than likely find out most of them were terrible students. Or they never completed high school. They were not the teacher’s pet. They were the ones in trouble or cast out.
Entrepreneurs are usually curious, tenacious, resilient and hard working.
Are your erroneous beliefs limiting your financial growth?
Consider all of your money beliefs and question if they might be incorrect, too. Having accurate beliefs enhances decision-making and results. Avoid buying into the myths.