by Indy Anna

Created on: April 29, 2008

Money myths, if I had a dollar for every one I've heard, I guess I would be a millionaire. Here is a list of myths that I find the most annoying if not completely obnoxious.

1. Buying things on sale
When people see a sale they tend to jump on the band wagon and buy more than what they need. A smart shopper will list their items of needs/wants and Purchase them when they are on sale. Not the other way around. This eliminates the splurge mentality and stops over spending on unnecessary items. There is an old adage; a bargain is made everyday. This is true.

Besides you only really save on an item if you were already going to purchase it to begin with. An example for me is diet pop. I drink it all the time, so when I see a sale price I will stock up. Believe me I am always on the hunt.

2. You can be happy without money
You have got to be kidding, I have never seen a happy couple who struggle financially, let a lone a happy hobo. Money is a tool to receive the necessities, without it people face some hard times. When the bills come due the stress builds up and can cause marital break up. When you can't feed yourself, take care of your health or do the most ordinary things you can suffer from depression and further strain your physical health.

3. It is easier to save money if you make more
This is not necessarily true; people who make more tend to spend more. Saving money is a discipline that some people may lack. When having an savings account there must be a certain mind set in place for it to work, any money going into it must be left there for the long haul. Sometimes it is easier to save if you set-up an automatic transfer from your checking to savings account. Money will transfer either weekly or by weekly with a preset amount (ex. $25.00 weekly).

4. I have a savings account so I'm saving. Having a savings account is great. However, if you have debt (ex. Credit cards) and you are funneling your money into a savings account instead of paying off the debt, you could be doing yourself a disservice. If you are only paying off the minimum, interest will be accrued. That means you are paying extra on top what that purchase is worth. The average savings account pays squat in interest so when you think about it, you are really better off taking money from the savings and paying off your debt; because that interest is an equivalent of opening your wallet, pulling out your cash and burning it.

5. Oh don't worry about it it's a tax write off
People have this strange idea

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