Don’t Buy These Three Money Myths

 

And He said: “Take heed that you not be deceived. For many will come in My name, saying ‘I am He.’ And, ‘The time has drawn near.’ Therefore do not go after them. – Luke 21:8

With all the avenues of communication open to the world, media, TV, internet, it’s amazing that so many are deceived. Apparently deceivers are better at communicating than truth tellers. Myths are a tool used by deceivers throughout history, and some of those myths have been around for a very long time.

Here are three old sayings about money I consider myths. You can judge for yourself.photo 1 (7)

1. Pay Yourself First

No, we can’t pay ourselves first. We have to pay our obligations first. You know—those expenses, loans, mortgages. Not paying our obligations is the same as stealing. If we’ve taken items or services from someone else, the money to pay for those obligations belongs to them at the time agreed upon, not after we’ve paid ourselves. Even God Who expects our first fruits wouldn’t expect us to steal.

We should pay ourselves, though. It’s called saving. But that’s why a budget is important. So we’ll live within our means in order to have enough to pay ourselves.

2. You Get What You Pay For

No, not always. This myth refers to the belief that the more money you pay, the better quality you’ll get. Actually, the more affluent we are, the more likely we’ll overpay. When you buy a particular brand, you may be paying for prestige instead of real quality. How do you tell what something is worth? Nothing is better than experience to teach us which item or service is of better quality for the money. Recommendations and reviews come next.

Buying shoddy items is a waste of money, of course, but overpaying for a brand name is equally wasteful. Accountability requires that we pay only what goods and services are worth.

3. A Penny Saved is a Penny Earnedphoto 4 (1)

How wonderful if this were true. Unfortunately, it rarely ever is. Your penny saved today is not going to be worth what you could earn at a future date. In other words, inflation will eat away at your savings. Inflation is a given in a capitalistic economy, so your savings must take this into consideration. Also, there are no true hedges against inflation. The only way to guarantee value will remain the same is to save the actual goods and services. Since there’s no way to save services, and goods will deteriorate over time, that isn’t a viable option.

Not all old sayings are myths, however. Save for a rainy day is absolutely true. No matter the circumstances, as long as this world exists, there will be rainy days. It isn’t a question of if emergencies will occur, but when. Our budget must contain savings for emergencies.

In spite of what economists say about the economy improving, fewer people are saving at all. It’s easy to understand why. Full time jobs are as hard as ever to obtain. Household income is falling. Those who were wise in days of plenty, now have their savings to fall back on.

We live in a world of deception, but the wise are never deceived. No matter how many say something is true, no matter how long they’ve said it, test it for yourself. Then make sure you don’t deceive yourself.

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