Common misconceptions that impede wealth gains

Platitudes and proverbs about how to live life are often very helpful when making choices to be a nicer well-adjusted person. When you apply these same principles to money management, you can encounter very serious financial problems. There are a few of the ways that life lessons can contradict standard money management and asset growth.

Common Misconceptions

  1. Living in the Moment

The idea of living in the moment and not taking life too seriously is a tempting venture. In reality, living in the moment is great for personal happiness, but maybe not for your budget. Gaining wealth in many cases means not making impulsive purchases and saving more than you spend. If living in the moment means spending haphazardly, then you should find another motivation that inspires growing wealth rather than spending it prematurely.

  1. Money isn’t important to life fulfillment

Happiness is individually experienced; however, financial distress causes unhappiness many people who would be made happy by an increase in wealth. While wealth does not necessarily equal happiness automatically, it does make financial issues less challenging for many workers seeking a change in circumstances. It is a misconception that money cannot improve the life and happiness of an individual because situations vary as well as experiences in money management.

  1. Money habits don’t change

This is an unfair mantra when applied to financial health. Daily singles and families alike change their money habits as situations demand. Money habits can be hard to change, but to suggest it is impossible gives the impression that change is impossible. Spending habits are learned and subsequently are behaviors that can change.

  1. Follow your Bliss

Many college students have been told over the years to follow their bliss. Often when selecting a major or securing their first job, they are encouraged to do the job that will make them happiest. The reality of the situation it that it’s not always a responsible financial choice to pursue a college major or career path that will not yield income to match any incurred debt from education cost. The idea is well intentioned in other aspects of life, but it’s not realistic to only do what makes you happy as an adult. An adult that hopes to construct a financial plan for the future will need to save in the present. It’s logical to assume that anyone working at a job they love will work very hard to excel and contribute as much as possible in their responsibilities. It cannot be assumed that happiness in one’s job will yield the necessary resources to support an adult life with financial responsibilities.

  1. Waiting Patiently will yield Results

Obviously procrastinating or waiting patiently for your retirement plan to grow on its own isn’t a savvy financial strategy. While a platitude will not harm you in other areas of your life, it’s unlikely that you will be able to grow a successful retirement fund if you wait patiently for something to happen when action is what is required.

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