8 Money Myths

8 Myths About Money
I grew up on a farm in Nebraska. My family had always worked hard for their money, and as a result, I always equated working hard with making money, with no idea that my beliefs could not have been further from truth. As I educated myself on human behavior and financial strategies, I learned that it’s actually the people who make their money work hard for them, rather than the people who work hard for their money, who end up with more of it. Since creating my millionaire-making program, I’ve learned that I was not alone. There are many people who shared this same myth.

Much like our views about many things -- people, relationships, food, and health to name a few -- our beliefs came from our parents, our teachers, and other adults in our lives. And it goes back even further, beyond them, back to the circumstances through which they lived, or what they learned from their parents, what their parents learned from their parents, and so on. These beliefs are ingrained, and because they’re usually subconscious, the cycles are continuous -- until someone breaks them. You can break the cycle. Beliefs about money are many and varied, but in my research, I’ve discovered that there are a few that predominate.

Money is scarce. Several of us have parents or grandparents who lived through the Great Depression, an era that rooted an entire generation in a scarcity mindset. These people passed onto their children the idea that money was in short supply and that when it did surface, spending had to be limited and saving was imperative. If any of the following ever crossed your mind—“A penny saved is a penny earned,” “Don’t dip into savings,” or “We can’t afford it” -- then you have this perspective and rainy days loom ominously. Money doesn’t grow on trees. These threats create a fearful relationship with money.

Money is evil, dirty, or bad. Several of us have parents or grandparents who believe that the road to bad places is lined with green. They’ve only ever seen the drawbacks of the rat race, the downside of the money chase, and the audacity and indulgence of those with too much money. Some even believe that wealthy people are bad people. Novels and films often highlight the idea that it’s the crooked ones who make the money. The meek shall inherit the earth. Such prophecies create a hands-off relationship with money.

Money comes monthly. The most common way to make a living is to be employed, either with a company or as a skilled professional, with a weekly wage or an annual salary. Historically, this provided the safe, sure thing required by heads of households. Yet, that level of risk was usually balanced with an equal level of reward -- low and low. For most, even those who do very well, working for a company or as a skilled professional is a constrained opportunity. Except for the outrageous exceptions, the average CEO of the average company making six figures a year will still experience only a small increase in salary during his or her lifetime. Slow and steady wins the race. Such fables create a cautious relationship to money.

Money is not for me. Some people feel that they don’t deserve to be wealthy or that there is only so much of the millionaire pie to go around. Creating wealth and financial freedom is available to everyone. It is our right to be wealthy, and my hope is that people take their space and know they deserve it. By making money, you are not taking it from someone else; this isn’t Bonnie and Clyde Go to the Bank. By making money, you create a greater capacity to contribute, and it’s your duty to do this. Better them than me. Such adages create a defeated relationship to money.

Money is a man thing. There was a time that men made and managed the household money. That time was not so long ago, and some of you may have grown up with such conditioning. Though there are gender tendencies, for example, men tend to carry more money in their pocket than women and are more likely to invest than women, the reasons behind this are not genetic; they are realities falsely fabricated from years of conditioning. Women and men need to understand that money knows no gender. One of my programs that really resonates with up and coming wealth builders is “Wealth Diva: A Man Is Not a Plan.” This is a must-do seminar for every man and woman, and the daughters and sons they love. Let him bring home the bacon. Such perceptions create an apathetic relationship to money.

Money is good medicine. For some people, retail therapy goes a long way; there’s no difficulty a new blouse can’t cure. At the moment, we live in a culture of consumerism, and many of us use money to fill the unsatisfying holes in our lives. Some people grew up with a sense of entitlement about money, assuming their parents or a trust fund would always pay for everything, and in the process, they became careless about what they had. This is a vicious and unproductive cycle. The new car gets old, the closet fills up with clothes, and the toys pile up in the playroom. This is notto say there aren’t wonderful things to buy and spend our money on; after all, money should be fun. But as with overeating, too much spending on the wrong things can get any of us feeling sluggish and sad. Shop till you drop. Such bombarding messages create a disrespectful or nonchalant relationship to money.

Money is always a menace. For too many of us, money was always a problem. Bills were a hassle, keeping up with the Joneses was exhausting, entrepreneurs were considered nuts, and one’s station in life was, well, stationary. And getting rich would be worse. Money can be such a burden, not to mention all that paperwork and responsibility. These views of money create a perspective that money is actually a problem, not a solution. It’s hard enough just to survive, let alone thrive. Such pessimism creates a negative relationship to money.

Money talk is taboo. Many of us have been brought up to believe that conversations about money are in bad taste. Money and financial success, and failures, are considered personal subjects that shouldn’t be discussed and certainly shouldn’t be taught. Few of us asked our parents how much money they made, and even now, there are people who don’t know their spouse’s salaries. The results have unintended consequences and have created a world where very few people are having real conversations about money and finances, the very conversations they need to learn and succeed. These things are not discussed in polite society, dear. Such a scolding creates an ignorant relationship to money.

In each of these examples, it’s clear that unless your parents made a conscious choice to think and act differently, they conditioned you to have the same mindset as them. If you make a decision to break this cycle, you will have the opportunity to teach your children to have more productive beliefs about, and a more profitable relationship to,money. As you come to understand the beliefs you hold, you will work to change them. Through the action steps in this process, and with the help of mentors and respected friends, you will change your behavior. By sharing your desire for new beliefs and asking your mentors and respected friends to help you spot the subconscious limitations you may be putting on yourself, you will teach your brain to follow your behavior. Begin now by restating your beliefs. For example, if you’ve discovered that you hold any of the above examples as beliefs, you will

1. Change “money is scarce” to “money is abundant” and support a courageous relationship to money.

2. Change “money is evil, dirty, or bad” to “money is good and acceptable” and create a hands-on relationship to money.

3. Change “money comes monthly” to “money comes from a range of sources” and create an opportunistic relationship to money.

4. Change “money is not for me” to “who better than me for money to come to” and create an empowered relationship to money.

5. Change “money is a man thing” to “I can and will know about and understand money,” and create a thoughtful relationship to money.

6. Change “money is good medicine” to “money is a tool to help make my life better” and create a respectful and concerned relationship to money.

7. Change “money is a menace” to “money is a solution” and create a positive relationship to money.

8. Change “money talk is taboo” to “money talk is vital” and create a knowledgeable relationship to money.

You can see how much better it is to be courageous, hands-on, opportunistic, empowered, thoughtful, respectful and concerned, positive, and knowledgeable than to be fearful, hands-off, cautious, defeated, apathetic, disrespectful and nonchalant, negative, and ignorant. The choice is yours and it looks like you’re well on your way. You’ve already taken a huge step by deciding to actually take the first step. By making the decision to start right now, you have created the opportunity to raise your financial consciousness and change your life.

5 Tips to Save Money--And the Earth

You just can't get that memo right, can you? You print out the first draft and find a misspelling. You print out the second draft and discover you missed some commas. You print out the third draft and later decide on a new title. Now the final draft is ready for printing. Before you throw away those wasted sheets of paper, stop and realize that you could be costing your business as well as the environment.

You probably know that by recycling you can save landfill space. But did you know that recycling also can produce a profit for your company? Follow these recycling tips and your workplace will be ready to save the world.

* Create a recycling program. Almost all types of office papers are recyclable. So is most plastic, aluminum and cardboard. If your office doesn't already have a recycling program, contact your local recycling company to see how to start one.

* Use recycled products. If you recycle but don't buy recycled products, you're defeating the purpose, in a sense, by discouraging manufacturers of recycled products.

* Conserve paper. Find paperless ways to communicate, such as by e-mail. Also, save used paper for scrap, make double-sided copies and only print pages you actually need. By cutting back on paper consumption, your office will save money and natural resources.

* Recycle office equipment. Did you know that computers can be recycled, as well as cell phones, PDAs, pagers, chargers and rechargeable batteries? Many local recycling companies and retailers, including Staples, offer easy ways to recycle your equipment.

* Recycle empty inkjet and toner cartridges. The fewer drafts you print, the more money you'll save on cartridge replacements. But when that inkjet or toner cartridge is empty, recycle it through mail-back programs or local retailers like Staples.

In fact, Staples offers a Recycle for Education program that gives $1 to local education charities for every empty inkjet or toner cartridge you recycle in their stores.

Bad Ways To Save Money

Finding new ways to save money on almost anything you buy is almost like getting a raise. Maybe it's even better. When you save twenty dollars on a coat you get to keep the whole twenty dollars. When you make twenty dollars more on your paycheck, you lose five dollars or more of it to taxes.

Finding ways to save money can go too far, though. In a recent newsletter on how to save money, one contributor suggested getting free flowers for weddings by picking up the leftover flowers at a cemetery. She didn't say how you can tell which are "leftovers."

I thought I was cheap! The following are gleaned from real suggestions on ways to save money sent in to "frugality" websites and newsletters. Some cheapskates don't seem to notice that an extra hour at work might put them further ahead than many hours of penny-pinching.

Ways To Save Money - Don't Try These At Home

A mother confessed that she makes her kids stuff their pockets with the free ketchup, salt and other condiment packets every time they were in a fast food restaurant. Oh, if only that were all, but no. She has the kids squeeze the contents of the packets into regular jars of ketchup and mustard too. She says she hasn't bought these condiments in years. Pride is found in strange places.

One creative penny pincher found a way to save money on car washes. He washes his entire car using the squeegee at the gas station. Hmm... I wonder if he takes the toilet paper rolls home from their rest rooms too.

Would you like a free umbrella? One man suggests getting one at the lost and found department of any large public library. You just tell them you lost a black umbrella. They will almost certainly have several, from which you can pick the best one and claim it as your own. What if they have no black umbrellas? I guess we'll have to wait for this guy to publish a "lost umbrella color frequency chart," in order to know which color to try for the next day.

Several contributors to these newsletters know how to save on their long distance phone bills. The most common suggestion is to call people long-distance when you know they won't be home, and leave a message for them. Then they pay for it when they return your call. I suppose if your timing is off, and they answer when you call, you can quickly hang up on them and try again later.

I don't recommend any of these as ways to even the most frugal person. Apart from the ethical issues with some of them, they can be lumped in along with washing and re-using plastic wrap - a time wasting frugality. On the other hand, they are fun to read, and I suppose we could view such measures as cheap entertainment as well. Perhaps you can turn off the lights to save money on electricity and tell the kids it's a game of hide-and-seek, or train your dog to beg from the neighbors so you don't have to feed him.

I wonder how many people actually pay for magazines and newsletters that tell us ways to save money? Do these magazines advise that readers go to the library to read them, or stand reading them in the aisle at the bookstore for a hour? Those are some sure ways to save money.