The truth about 7 money myths

Many of these false financial rules fool even the best savers. How many of these do you believe?

 of 9
 of 9

VIDEO ON MSN MONEY

147Comments
Oct 17, 2013 11:36AM
avatar
It's not what you make, it's what you keep.
Oct 16, 2013 11:48PM
avatar

I know from experience that making large sums of money when young makes it hard to bring spending down when that income declines. I started an oil tool business in my early 20's, made tons of money and bought a lot of over priced toy's thinking every year I'd make more. When an oil bust occurred I didn't have enough cash to ride it out and never again reached that level of income. It's much easier to learn to budget when you start out making very little and slowly make more than to begin making a lot and then have to survive on much less.

Oct 17, 2013 9:33AM
avatar
On the education issue:
I have friends that work construction  making about $27 an hour with full union benefits. On the side they worked for anywhere between $25 to $40 an hour cash, no taxes. A pretty nice chunk of change. All without college or even sometimes finishing high school.

Compare that to someone making $50,000 to $80,000 a year with a masters degree.

It doesn't always have to be about college:)

Oct 19, 2013 4:43PM
avatar
Money can't buy happiness; but the lack of money can sure buy a lot of misery.  When base earnings are insufficient to provide basic necessities, people sink into depression, hopelessness and fear.  Once a person is earning enough money to provide all those things necessary to survival, things like food, housing, transportation and medical care, it is much easier to be happy.  Constant anxiety is not good for the human spirit.
Oct 17, 2013 12:08AM
avatar
Higher degrees do equal higher earnings IF you're working for someone else.  Otherwise a degree is irrelevant to your earnings.
Oct 17, 2013 10:10AM
avatar
Of course money is correlated to happiness.  It is about time someone said it. It does not mean that we are all greedy.
Oct 16, 2013 8:56PM
avatar
I have a little skepticism regarding the calls associated with these myths/statements. Especially with the earnings myths.... I have known many skilled jobs paying much more money over a typical human work life over the educated guru.  
Oct 19, 2013 1:35PM
avatar
Money can buy happiness.  It's the lack of it that makes for misery.  When you can't pay your bills and can't afford to ever go anywhere, that's miserable.  I respect money because I grew up poor.  I did well when I was older.  I try to get my two younger roommates to hang onto their money and save a little, but it all falls on deaf ears.  Like me, they think the money will always come in.  I learned differently.  As one gets older, job opportunities are less and less and when you hit a certain age, lotsa luck finding a job.  So peeps, all I can say is save as much as you can.  Keep a clear jar on  your dresser to remind you to throw your change in it - at least that's a start - and a reminder.
Oct 25, 2013 2:02PM
avatar
Money does not buy happiness but having money does make dealing with the world easier. 
Oct 19, 2013 6:25PM
avatar

This is another attempt to shine light on a subject to further confuse Americans about the need for fiat money and the Federal Reserve while scamming the public into thinking that productivity is determined by dollars. I guess you have to be older than 50 and blind, or under thirty and apathetic, not to see that we have people starving right here in America.  Millions of men, women and children have entered the ranks of the homeless, destitute and hungry and all this government can do is respond with cuts to the SNAP program for the poorest in need.  Yet, we have billionaires getting corporate welfare and everyone seems to think that this is acceptable.  When did human NEEDS take a backseat to corporate GREED? Let us get into this a little further....

Oct 16, 2013 9:43PM
avatar

Qualitative budgeting is the best way to save money.  If you have a set amount or spending limit, and you compare everything in the offer, like a television in the above example, then you will be better off.  It is not that hard to look and see where it is made, how it is made--including but not limited to: the refresh rates, dots per square inch, power consumption, durability, space requirements and dimensions, weight, compatibility with existing machines, aspect ratios, contrast, tint, brightness, color modes, environmental impact, human impact, etc.  Basic qualitative analysis would reveal whether the money can or cannot, and should or should not be spent. 

 

More earnings do mean more wealth, unless you waste it.  Those without self-control or common sense will obviously waste it, but saying people shouldn't have more money because they spend it, is like saying people shouldn't have more food because they eat it ...

 

I get tired of hearing the idea of higher degrees meaning bigger salaries myth as true.  The only reason people with higher degrees have higher salaries is because people who have higher salaries can afford to buy a degree, not because people who have higher degrees get better salaries.  Correlation does not equate to causation, there may be other independent factors contributing to the correlation.  Unfortunately, whatever data they are using is obviously not reflective of the current state of the economy or time.

 

Happiness is a state of mind.  If you start claiming it is a feeling and treating it as such, it will come and go like the wind unless you can control your feelings.  The real reason people's well-being improves is because they can afford to do things like sleep, eat unprocessed foods, and don't worry as much.  (Note that having money can cause people to worry about losing it too, also affecting their well-being.)  Again, if respect and social standing are needed to make you feel happy, then you're not truly happy.  Maybe the tendency is for happy people to gain respect or social standing rather than the other way around.

 

I am not so sure going to a pricey institution is a "need." It probably is true that some get what they don't really need, while others who really have a need are unable to get it.

 

Credit really doesn't matter anymore, people and corporations either borrow beyond their means, or are capable of paying it back and don't really need to borrow.

 

I don't understand how people can live within their means if their means are 0.  Anyway, I think it's pretty obvious that those that have money can't trust these "retirement" plans, where the hope is that they will die and pay out so much in fees, costs, fraud, corruption, inflation, and taxes for so little guaranteed returns.

 

One is probably better off doing the best with what they have instead planning for what they can't prepare.

 

It is what it is, I suppose.

Oct 25, 2013 10:04AM
avatar
The sad fact is, we can ALL live "comfortably" on surprisingly little. When tough times hit, and you're forced to "make due", you learn a valuable lesson in what things are truly important, and what things you only THOUGHT were important, but really aren't.

Financials troubles, generally speaking, are almost always self-inflicted.

Oct 22, 2013 2:28PM
avatar
Sure, there are other things besides money:  Hunger, Poverty, Need.  Stop denigrating money and save some.
Oct 17, 2013 2:49PM
avatar
Whoa!  I just saw "average" vs. "typical."  And I recognized the weaselly way to trick people with statistics.  The income of the average college graduate is influenced by the kid of a billionaire who basically gets handed a billion of his own to keep the money in the family.  In calculating the typical income of a high-school graduate, outliers are discarded.
Oct 25, 2013 9:51AM
avatar
What's really funny are the comments about people who aren't materialistic are happy without money and only people who are materialistic get enjoyment from it.  My wife and I live in a small house, own a newer car and one with almost 250k miles on it and other than tools to care for the house and yard and sporting equipment own nothing of value.  We don't even have a sound system, but we do have an honest to god record player. One of our TV's is still the old 27" type. WE do have money though and we do derive happiness from it because of where it takes us and what we can do when we get there, not because of what we can buy. If it snows in Utah I can fly there and ski two days instead of skiing ice and rocks in Maine.  That makes me very happy.  When its zero here in two months and I miss the sun?  Fly to Miami Friday night and fly home Sunday night.  Makes us happy.
Oct 19, 2013 6:26PM
avatar
part 2..With unemployment numbers closer to 15% than the reported 7.6% (always used the same formula for computation that does not include students, seniors and those not looking for work) where are these people going to get a job?  This is not Detroit in the 1960s when we made cars in the USA and a high school graduate could make enough money to buy a house, raise a family, have a vacation and a summer lake house and still put money away for retirement and their kid’s education.  What has happened since then?  Many will blame the unions, and I have to agree to an extent, but the “BIG THREE” continue to make cars using labor in foreign countries (thank you NAFTA) and profits are higher.  After a government bailout, which by the way is a FASCIST tactic, they have a new lease on life to plunder consumers some more.  Just ask the finance capital, like Bank of America-Chase-CitiGroup-Goldmann Sachs…who was allowed to take $12.9 trillion from tax payers to stay in business.  .
Dec 7, 2013 8:09AM
avatar
Pay your bills and save the rest of your paycheck , has worked for me .
Oct 25, 2013 11:07AM
avatar
Maybe money doesn't buy you happiness but when you don't have to struggle to pay your everyday necessary bills and you have a wonderful spouse, as I did, there is a load off you shoulders and you can concentrate on a myriad of other things.  We weren't like our kids HAVING to have the latest, biggest.......... whatever, we lived below our means but we amazed them by taking vacations twice a year and being able to retire early. 
Oct 25, 2013 8:48PM
avatar
Money *may* not buy happiness, but poverty sure as hell doesn't.
Oct 22, 2013 11:52AM
avatar

I can add another career to screen #4 that pays better. I'm a business jet mech/inspector, and when that expensive jet is down for maintenance, my few hours of labor and the RETURN TO SERVICE SIGNATURE that goes with it can make even a millionaires' face turn red!!

Sure, the doctors may make more per year total, but the dollars-per-hour numbers I generate should make anyone borrowing for college think twice. I include more than the yearly total in my personal calculator. I enjoy many sunny, beautiful days off, and easily save for my retirement as well. I may not get to the finish line with as many dollars as some people, but my suntan, relaxed lifestyle, and ZERO DEBTS account balance are worth a fortune to me. By the way, those millionaire jet owners work MANY, MANY more hours per week than most of you realize!!!!   

Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.