35 Lies about Money that Keep you Poor

1. Money is the Root of all Evil / Money is Evil / Money Makes you Evil. 

The Truth? Money simply opens up your range of opportunities. If you’re a person who genuinely wants to do good, money is a tool that will allow you to amplify your kindnesses. Alternatively, if you were greedy or rude prior to wealth, you’ll still be greedy or rude after the money. 
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2. Wealth is Guaranteed if you Work Hard. 

The Truth? Wealth is never guaranteed. There isn’t a simple formula, or a step by step method, or any guaranteed way to become wealthy. Wealth creation is more like a distorted form of art. Sometimes it’s a hit, sometimes it’s a myth. But, by working smarter and not harder, you’ll increase your chances of growing your money. Simply expecting and demanding more results and cash will never pay off. 

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3. I shouldn’t have to work two jobs. 

Why? What makes you so special? A couple of centuries ago, you had to work, or literally die. No firewood? Freeze to death. No hunting or gardening? Then go ahead and starve. People used to dedicate every waking hour of their existence simply to work to survive another day. If things get too bad for us, we have shelters, food stamps, government assistance, government housing, etc. People back then didn’t have those luxuries, be thankful. Also, what’s wrong with working two jobs instead of one? In reality, those two jobs double your opportunities. You have the ability to advance in two separate professions. And, should one job let you go, you still have one form of income, no matter how small it may be.

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4. You have to have car payments for the rest of your life.

Nope. The vehicle you’re making payments on right now? Make it your last. If you don’t love it when you’re finished with payments, save up some cash, and trade it off for what you want. Don’t take on more payments, that money can serve you infinitely better elsewhere. “Yeah, but a new car saves me money with good fuel mileage!” Wrong again! Check out this super cool car cost vs mpg cost calculator.

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5. Money Solves Everything / A raise will fix everything.

Sure, more money will be beneficial, but ONLY if you don’t change your spending habits. If you increase your spending with a higher cash flow you’ll stay stuck in the same financial situation.

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6. Lottery tickets are the only ways you can get rich fast. 

Getting “rich fast” is possible, you just have to change your definition of fast from ‘next week‘ to ‘five‘ or even ‘ten years from now‘. Sure, lottery tickets have the potential to make you wealthy, but those chances are less than 1 in a million, and when you lose, the money is gone. Investing a small amount each week for a period of time has far greater potential, and its guaranteed, unlike that lottery ticket. 

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7. Your home is a ‘starter home’. 

Do you have a bedroom? Do you children have rooms (one boy room, and one girl room is plenty)? Is your neighborhood safe? Then you probably don’t need a new home. Your house doesn’t need to be 3000 square feet. Pinterest is full of great ideas when it comes to home renovations on a budget. 


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8. Your home is an asset. 

Yes, technically your home is an asset, but it’s almost completely illiquid, while also being a time and money consumer. Until you sell or rent a home, it can only cost you. Repairs, insurance, mortgages, maintenance, and utilities, they all pile up- before long, it feels like your home owns you, instead of you owning it. Don’t justify spending a lot on a home because it’s ‘an asset’, because, until you treat it like a business by selling or renting it, it’s only a liability in disguise. 

Read this:  The only Credit Building Guide you'll ever Need

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9. Owning is better than renting. 

Owning certainly has its perks: the ability to sell or rent out the home; additional privacy; and steady/guaranteed housing. But, so does renting. Renting: allows you to move locations more freely; forget about home repairs, maintenance, taxes, and sometimes utilities; gives you the option to easily downsize or move without consequence, which can be highly beneficial when the economy hits a recession. Sometimes recessions leave homeowners owing more on the home that what it’s worth. 

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10. You’re stuck with your current financial situation. 

This is YOUR life. You can do anything you’d like. You’re free to get a second job, change jobs, quit jobs, downsize, move, or simplify your lifestyle. You’re never limited to whatever income your main job creates you. 

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11. Broke people don’t need to budget. 

Everyone needs to budget, especially broke people. Budgeting tracks where you’ve been, and lets you pre-plan your financial future. It’s the best way to recognize your situation, change your ways, and improve yourself. Here’s a great budget tracker, all set up & ready for you to use

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12. Broke people can’t afford to invest.
 Investing doesn’t mean dropping $5,000 into the stock market. Investing simply means putting your money into a situation where it will grow or work for you. Betterment is a great starting point for beginners.  

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13. You have to eat GMO free, cage free, organic, gluten free, dairy free, hormone free, free range, grass fed, food that’s cared for by happy little men in hemp overalls. 

Nope. ‘Regular food’ is still USDA approved, it’s so much safer than you give it credit for.  Check out these five fast facts regarding your food.

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14. Time is Money. 

Yes and No. Time is important, but it by no means equals money. Find ways to duplicate yourself and your work. You can’t make two of yourself to work your day job, but you can mow yards for $40 an hour, and pay an employee to mow on your behalf for $25.

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15. Paying your credit card on time is all you need to have a great score. 

Unfortunately, it’s not that simple, there’s five sectors that compose your score. Here’s how that works exactly. 

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16. Carrying a balance on my credit card helps my credit score. 

Wrong again! I fell for this one for a while too, don’t do this. Learn from my mistake right here

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17. A credit card is like a savings account. 

Credit card interest rates are higher than most other lines of credit. Though they can be useful in the event of an emergency, they are harmful in long term when you consider the interest rates and money lost due to those. 

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18. Cash is King. 

Yeah, maybe on Craigslist. Though credit cards require financial responsibility, they are really good for you. Beyond the obvious boost in credit, cards have lots of other benefits. Many cards offer a rewards system, which equals free cash, fuel, trips, and more. Credit cards also offer protection that cash just can’t: the ability to shut off the card if lost/stolen, additional warranties, insurance, and fraud protection. 

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19. Buying used is just inheriting someone else’s problems. 

If you want safe and reliable, get you a 2000s Ford Taurus. It’s not fancy or pretty, and let’s be honest- that’s why you don’t want one, not because of ‘reliability’. 

Read this:  Every Town Needs these Five Businesses- Start One Today!


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20. If I’m approved for the loan, I can definitely afford it.

 No way José! Banks are notorious for giving out more in loans than they should. Oftentimes, banks will allot you 30-36% of your income for debt. Do you really want to sacrifice more than a third of your income for your home and/or car? 

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21. “I deserve this.” 

Ugh. Yes, you had a bad day, or you’re frustrated. Go home, fix yourself some dinner, get a hot shower, and go to bed. If you reward yourself every time you have a bad day, you’ll have nothing left! Instead of making lots of small rewards for yourself, change your entire lifestyle. If your job is that horrible, quit. If your town bothers you that much, move. If your boyfriend irritates you so constantly, break off the relationship. You shouldn’t need a break from your life so often. 

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22. You can’t have anything if you don’t have debt.

I can’t tell you how often I hear this lie. You don’t *need* debt to survive. You don’t need to own a home when you’re starting out, renting is fine. You don’t need a big home. You don’t need to eat out. You don’t need a new car. You don’t need fun toys for the weekend. You don’t need expensive clothes, or even a variety of clothes. I personally have 9 V-necks, 3 jeans, and a coat.  

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23. All debt is bad debt. 

When used appropriately, no. Debt that has the potential to pay itself back is good, such as real estate investments, business ventures, and self investments (education). 

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24. I have two choices: flip burgers, or get at least a bachelors’ degree. 

Everyone seems to forget about the power of a trade. Make cabinets, shoe horses, washout tractor trailers, weld, drive, become a mechanic. These are all jobs with excellent pay, that don’t require much (if any) debt to learn. 

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25. Investing is really risky. 

Only if you don’t know what you’re doing! When you buy a vehicle, do you buy 10 of them, and hope one run? Or do you do some research, and buy 1 that you’re confident with? That’s how you should invest, especially if you jump into the stock market. 

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26. “So & So has _____, they’re rich”. 

Maybe, but probably not. They just chose to take on more debt than the average person. Comparison is the thief of all joy.

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27. Working 40-70 hours a week is the only way to make money.

Side hustles are everywhere, and unlike your 9-5, your potential is limitless! Check out this post to get started side hustling or this one to start a home business that has $0 in start up costs

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28. All fast food is bad/expensive. 

This myth doesn’t necessarily make you poor, but it’s still a myth. Let’s say that, to save money, you cook at home every single day. Each meal of yours is $3 per person on average. If one day, you’re in town and hungry, it’s okay to grab a $2.50 hotdog from a gas station for lunch. It’s easy to assume that all fast food is expensive, but that’s just not the truth. To see how I can live off $2.52 per person per day on food, see this guide

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29. The government / my children will cover my retirement.

Hah. Sure, but do you really want that to be your plan? We’ve seen how the government handles its own money, do you really want it in charge of yours? And what about your kids? Do you really want to live in their basement, babysitting your screaming grandchildren for the rest of your days?

Read this:  To the Wife who Married a Jerk

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30. You have to make a lot of miserable sacrifices to become wealthy.

Nope. I actually wrote an entire book on creating personal wealth painlessly, you can snag your copy for $1.99 in eBook format, the paperback for $9.99, or the entire eCourse (which also contains the paperback AND eBook) for $19.99.


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31. Money is best kept in the bank. 

Did you know that most wealthy people don’t have a huge room full of money? Only Scrooge McDuck dives into a pool of coins, basically everyone else who is rich has their money tied up & invested elsewhere. 

Just keeping money in the bank without investing it is the equivalent of mattress stuffing in today’s world. You may make a tiny fraction of income from your bank’s interest rates (less than 1% usually) but that’s not even enough to keep up with inflation. 


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32. If wealth were redistributed, we’d all be rich.

 Imagine this, there’s a small town of 100 people. A handful of people are very impoverished, the majority are middle class, and one man is very wealthy. The wealthy man owns 200 chickens. This man is generous, and divides all the chickens up equally amongst his community. That night, a handful of people eat delicious roasted chicken. The majority enjoy an increase of daily eggs they collect. The initially wealthy man lets his chickens reproduce, not eating the eggs. In a year, he is back to having 200 chickens, and everyone else is back where they started. 

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33. Two incomes are better than one. 

This is true, but only if you’re carefully tracking your incomes, and not spending more as a result of increased income. 

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34. Money loans to family are a good idea. 

Loans to family are never a good idea, either give them the money, or don’t help them at all. You’ll only be resentful at holidays when you see them in a new car / nice clothes / showing vacation photos, when the loan hasn’t been repaid. 

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35. I can’t earn more money because of taxes. 

It’s amazing how many people buy into this lie. Taxes are cleverly set up so that you never lose money by earning more. 

For example, let’s assume you and your spouse make $10,000 a year. This puts you in the lowest tax bracket of 10%. You owe $1000. 

Now let’s assume you got a raise, you and your spouse now make $20,000 a year. This puts you in the 15% bracket. You don’t pay 15% of your income in taxes though. The first $18,450 (the maximum limit of the first tax bracket) is taxed 10%, which means you pay $1,845. You still have $1,550 left to pay taxes on. This amount is taxed 15%, so you owe $232.50 in taxes for it. Your grand total owed in taxes $2,077.50. That’s just barely more than 10% of your income- no reason to avoid trying to make more money. 


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What money myths have you believed & then busted? Let’s hear them in the comments! 

If you’re interested in bettering your financial situation, be sure to check out my latest book “Finding Financial Freedom: How You Can Create an Abundance of Wealth in Small Town America“. For a limited time, it’s 33% off, and S+H is free!

The eBook is $1.99, the paperback is $9.99, and the eCourse is $19.99. Grab your copy here! 

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To find other ways to improve your finances, click here.