Many millennials always dream to effectively manage their money. Yet, many of them are trapped in the wrong way. Thus, as cited from CNBC Invest in You, here is part 2 of 5 money lies millennials need to stop telling themselves.
3. ‘My friends earn less than me, yet they are still able to go on four vacations a year.’
You friends are either highly skilled practitioners of conscious spending or have absolutely no clue how to manage their money.
Many of us may have witnessed parents arguing over why they cannot go on vacation just like their neighbor. Yet, they do not actually understand how their neighbor’s spending breaks down. Chances are they’re not conscious spenders, but rather over-spenders.
In other word, would you ask your friend who failed his Basic English class for grammar lessons? Hopefully not. So why would you look at your friends, who make ordinary money decisions and end up with less money, as role models?
Also read: 5 Money Lies Millennials Need to Stop Telling Themselves (Part 1)
4. ‘I am going to start investing.’
If you ask any of your friends how much they’ve invested in stocks, you will probably say that they do not have enough money to do it. Moreover, they may also say that they do not have sufficient knowledge to do it.
Opening an investment account gives you access to the biggest money-making vehicle in the history of the world. Besides, you don’t have to be rich to do it. Many account providers will waive minimums you set up an automatic monthly transfer.
So many people end up not investing after they say that they are going to start investing. Most of their reason is they do not think they are capable of understanding the basics. Besides, they also do not want to risk losing their hard-earned money.
But for every day that you do not invest, you’re losing money due to inflation. Sadly, you will never realize this until you are in your 70s, at which point it will be too late.
Also read: Wealth Gap between Baby Boomers and Millennials
5. ‘Wanting to get rich is bad.’
Indeed, obsessing over money and being consumed by greed is bad. Yet, wanting a better future for you and your loved ones is anything but.
Having more money opens up an incredible amount of options for you and everyone around you. For some, getting rich means having the financial freedom to spend extravagantly on their hobbies. For others, it means having the luxury of paying for a house cleaner every week.
Thus, you need to want to be rich.
