One of the most common misconceptions people hold about money and finance is that there is a single plan that works for everyone. The truth is that, just as with dieting, there is no one-size fits all, cookie-cutter approach that works for everyone.
Men and women are equal.
Most women don’t realize it’s more important for them to be financially sound than their male counterparts. The bare-bones truth of the matter is that women live longer (than their husbands), have often worked and earned less (less social security and benefits racked up), and often have themselves as well as elderly parents to pay for (not to mention any children that need financial help). Fair or foul, the reality is that women need more financial planning than men.
Coupons and sales save money.
Okay, well, this isn’t completely false; it can be true if they are used properly. Unfortunately, some people think as long as they’re using a coupon, they’re truly saving money. The truth is that if you wouldn’t have bought the product at full price, you don’t need to buy it at a discount, either.
Take that one step further, too. If your ultimate goal here is saving money, then the money you saved should be just that: saved. Put it in a special savings account. Otherwise, you don’t really save money, you just spent a little less for something you would have bought anyway, or you spent a whole lot on something you didn’t need in the first place.
The more money you make, the richer you’ll be.
The truth is that becoming rich is all about saving money. If you make $5,000 a month and spend $4,500 a month on bills and little luxuries, you aren’t going to be any better off than the guy making $1,600 a month who has $1,100 monthly expenses.
In reality, we should all be looking at percentages, not pure wages. The person who gets rich is the one who saves money and makes that money work for them, rather than against them. It’s not about income, it’s about spending.
There are no cookie-cutter financial plans that work for everyone. However, saving money is key to making any financial plan work. Regardless of your income, spend less and save more. That’s a money truth you can believe in.
