6 Money Myths that Will Change the Way You Think About Your Finances

Updated: September 11, 2023

In the information age, you’ll come across droves of “advice” on how you can achieve success.

While some of these have their merits, not all of them are based on factual evidence. Rather, they’re purely anecdotal and, therefore, cannot be applied in every situation.

In this post, we’ll separate fact from fiction. Whether you are a part-time employee or a branch manager of an established business, below are six money myths that will reform your financial habits.

Myth 1. Renting is a waste of money.

Why rent something and utilize it temporarily when you can purchase it and own it forever? The answer boils down to two words: opportunity cost.

A big purchase, like a house, for instance, requires you to shell out a huge sum of cash for the down payment.

In most cases, this means shutting your doors on all other opportunities to invest in something profitable, like the stock market or a small business.

Watch this: Why Home Ownership is Actually a Terrible Investment

Myth 2. You’re too young to start saving.

So, you’ve learned that your affluent friend or relative didn’t start saving until they were in their 30s — so what?

Remember that while it’s never too early to start saving, you can be too late. And at that point, it might be immensely difficult to attain financial independence.

Start now while you still have a few responsibilities on your shoulders. Don’t wait for a reason to start doing so, such as purchasing a brand-new car or suddenly becoming the breadwinner of your own family.

Myth 3. You don’t earn enough money to start saving.

Granted, Filipinos are burdened with the high costs of living and lower compensation as compared to our Asian neighbors. But think about it: while you’re here reading this post, millions of Filipinos don’t even have internet access.

Stop making excuses such as “I’m currently underemployed” or “I’ll start saving once I get that big promotion.” Even if you save at least 100 pesos every workday, that still amounts to roughly 2,000 pesos a month or 24,000 pesos a year.

Myth 4. You always get your money’s worth.

A 500-peso meal isn’t always more filling or satisfying than a 100-peso lunch elsewhere. The same can be said for brand medication, which isn’t necessarily more effective than generic products.

In short, you don’t always get your money’s worth. This can be partially true for some products, but the difference between a cheap brand and a luxurious one is usually blown out of proportion.

For example, an expensive smartphone is definitely faster and more aesthetically pleasing, but should it really cost 3-5 times as much as another low-end or mid-range phone? Are the gaps in performance and build quality enough to justify the huge price difference?

Myth 5. You’re too clueless to start investing.

You don’t need a degree in finance or economics to handle your money well. With the internet, everything you need to know to invest fruitfully can be obtained with a simple Google (or YouTube) search.

Of course, you can also follow blogs such as this one to gradually improve your financial IQ. A few books, seminars, and online courses won’t hurt, either.

Myth 6. Higher degrees mean higher income.

This myth definitely deserves a mention, especially in Filipino culture.

Most students today believe that, once they get their degrees, they’ll be living large. As a result, their mindset becomes hardwired to chase bigger employment opportunities rather than exploring other means of generating income.

Sure, extremely talented individuals can obtain recognition and wealth in their field. But what about those who aren’t as blessed? How confident and motivated can they be once their childhood expectations become shattered?

Truth be told, the Philippine economy offers little legroom for aspiring professionals to thrive.

That’s why people who pursue opportunities abroad are generally more comfortable and fulfilled. The same goes for independent freelancers who seek remote work arrangements with clients overseas.

As a takeaway, always remember that you have the biggest responsibility in your financial future.

You shouldn’t wait and rely on your boss, parents, school, or even the government to hand you opportunities – they may have the obligation to help you, but it’s not their duty to bring you financial success.

Rather, start within by identifying your skills, revisiting your passions, and investing in more knowledge. Soon enough, opportunities to generate income will surely present themselves.

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  1. Mr Fitz, this article is rich with great insights. Superior post man. After living in the Philippines for over one year, I sold two stock holding that were peaking and used the profit to purchase my first home here. NO RENT, NO MORTGAGE and life is good, so I thought. To fast forward, my wife began a super business less than two years ago and we were funneling capital into it as fast as we could, I even thought to leverage some of the equity in the fully paid for home. NOT SO FAST. Although my US income counts toward my wife’s ability to obtain a mortgage, I am discriminated against because, the banks say the loan must be paid in full before a person turns a certain age. It appears age discrimination is legal in the Philippines? Our business is rapidly growing and I continue to add spare cash as it become available to grow even faster. Still I wish we could unlock some of the value in the home.

    Also, #6 rings true. I see it in the US, so many students with no chance they will ever be employed in the area where they earn a degree but start their working life burdened with student loan debt. There is NO free lunch, that bill must be paid, I even met a young lawyer who could NOT obtain a mortgage to purchase a first home. The reason: student loan debt that he thought he could put off forever until it caught up with him. Same here in the Philippines, I have lost count of the cashiers I have spoken with who have a college degree but they are ringing up your donuts or lunch bill. The shop manager figures why hire a student in high school who needs a part time job when I can employ a college grad. That is the ugly truth of today’s college system in many places, they prepare you to get a job, they DO NOT teach you how to make money.

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