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It takes money to make money: One of the most dangerous money lies is “It takes money to make money.” This is a belief in many poor families that because they don’t have money they can’t make money. Many of the greatest companies in the world started on a shoestring budget. Sure it’s easier to make loads of money and gain financial independence if you can start from an advantageous place but it’s not a necessity.
Credit is bad: I vividly remember as a child the whole family getting together and my aunt cut up her credit cards to cheers from the family. Credit is a bad word in many families. That couldn’t be further from the actual truth. Credit is good. Credit gives you options. Credit allows you to build. On the other hand, you know yourself. If you can’t handle a credit card then maybe you should deal with some of your other unwritten money thoughts before you go down that path. If you are not paying off your credit cards every month then you are costing yourself tons of money in interest.
Banks are dangerous: I have actually seen clients dig up money from their backyard. I have seen people stashing thousands of dollars in the dresser. As a young man I was guilty of hiding $1,700 behind the clock because I was afraid to put it in the bank. Some people believe that banks are dangerous. They believe that if they put their money in the bank it will somehow disappear with hidden fees. First, that’s simply not the case. You have to operate within the traditional banking system to build any real wealth. No one ever got rich by hiding their money in bricks in the wall. (Another true story) Second, make sure that you are getting the right bank account. Certainly there are banks with poor service and high fees. I personally love Capital One 360. They are a fantastic online bank with no fees, good tech and reasonable interest.
