{"id":17384,"date":"2020-10-31T21:24:00","date_gmt":"2020-11-01T01:24:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=17384"},"modified":"2020-11-11T17:28:15","modified_gmt":"2020-11-11T21:28:15","slug":"myths-about-money","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/myths-about-money\/","title":{"rendered":"14 Myths About Money: Are You Being Fooled?"},"content":{"rendered":"\n<p>What are some <a href=\"https:\/\/www.shortform.com\/blog\/beliefs-about-money\/\">myths about money<\/a>? How do money myths keep you from making the best financial decisions?<\/p>\n\n\n\n<p>Myths about money are part of the background shared by Dave Ramsey in <em>Total Money Makeover<\/em>. According to Dave Ramsey, money myths are rooted in<em> <\/em>ignorance and shortcuts.<\/p>\n\n\n\n<p>Read on to understand how myths about money might be affecting you.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\">Mindsets Behind the Myths About Money<\/h2>\n\n\n\n<p>Like <a href=\"https:\/\/www.shortform.com\/blog\/myths-about-debt\/\">myths about debt<\/a>, there are myths about getting and handling money. They run counter to <a href=\"https:\/\/www.shortform.com\/blog\/the-total-money-makeover\/\">the Total Money Makeover<\/a> principle of effort and sacrifice, of living differently from everyone else now so you can live differently from everyone else in the future. Becoming financially fit has a cost and there aren\u2019t any shortcuts.&nbsp;<\/p>\n\n\n\n<p>According to Dave Ramsey, money myths stem from two basic mindsets:<\/p>\n\n\n\n<p><strong>1) Ignoring risks: <\/strong>People who are poor at managing money often ignore the risks of deals that seem attractive on the surface, or they ignore risks of failing to act when they should. There are several reasons:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>They may ignore risks out of laziness\u2014they don\u2019t want to put in the effort of investigating \u201cgreat deals\u201d for a downside\u2014it\u2019s easier to just believe the seller or lender\u2014or they do so out of greed.&nbsp;<\/li><li>They\u2019re overwhelmed and just settle for a bad solution.<\/li><\/ul>\n\n\n\n<p>Regardless of the reason, those who deny a so-called deal\u2019s risks end up disillusioned and worse off financially.<\/p>\n\n\n\n<p><strong>2) Looking for shortcuts:<\/strong> People facing money challenges often look for a shortcut or an easy solution, whether it\u2019s winning the lottery or falling for a TV offer to make quick money or fix debt problems. But shortcuts, like microwave dinners or instant coffee, produce disappointing results.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The 14 Myths<\/h3>\n\n\n\n<p>These <a href=\"https:\/\/www.shortform.com\/blog\/two-mindsets\/\">two mindsets<\/a> help fuel the following myths about money:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Things will work out if you don\u2019t plan for retirement.<\/li><li>Gold is a good investment, especially in an economic crisis.<\/li><li>Cash value life insurance or whole life insurance are good ways to save.<\/li><li>Prepaying your funeral or your children\u2019s college tuition protects against inflation.<\/li><li>Buying a mobile home is better than renting because it\u2019s an investment.<\/li><li>When you\u2019re divorced, you\u2019re not liable for loans your ex agreed in the divorce decree to pay.<\/li><li>It can\u2019t hurt to play the lottery\u2014you never know, you might get rich.<\/li><li>Books and DVD sets touted on TV can tell you <a href=\"https:\/\/www.shortform.com\/blog\/how-to-get-wealthy\/\">how to become wealthy<\/a> by working only a few hours a week.<\/li><li>No one has time to plan a monthly budget, or make a retirement or estate plan.<\/li><li>Debt management companies advertising on TV can help you pay off your debts.<\/li><li>A credit repair service can \u201cclean up\u201d your credit, erasing past problems.<\/li><li>It\u2019s easy to file for bankruptcy and start over.<\/li><li>You can get away with skipping insurance.<\/li><li>It\u2019s not important to have a will if you\u2019re young.<\/li><\/ol>\n","protected":false},"excerpt":{"rendered":"<p>What are some myths about money? How do money myths keep you from making the best financial decisions? Myths about money are part of the background shared by Dave Ramsey in Total Money Makeover. According to Dave Ramsey, money myths are rooted in ignorance and shortcuts. Read on to understand how myths about money might be affecting you.<\/p>\n","protected":false},"author":6,"featured_media":15927,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[31,9,43],"tags":[147],"class_list":["post-17384","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money","category-psychology","category-self-improvement","tag-the-total-money-makeover","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>14 Myths About Money: Are You Being Fooled? - Shortform Books<\/title>\n<meta name=\"description\" content=\"Are there myths about money that are keeping you from taking control of your financial health? Yes! See Dave Ramsey&#039;s 14 money myths.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shortform.com\/blog\/myths-about-money\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"14 Myths About Money: Are You Being Fooled?\" \/>\n<meta property=\"og:description\" content=\"Are there myths about money that are keeping you from taking control of your financial health? Yes! See Dave Ramsey&#039;s 14 money myths.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.shortform.com\/blog\/myths-about-money\/\" \/>\n<meta property=\"og:site_name\" content=\"Shortform Books\" \/>\n<meta property=\"article:published_time\" content=\"2020-11-01T01:24:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-11-11T21:28:15+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/s3.amazonaws.com\/wordpress.shortform.com\/blog\/wp-content\/uploads\/2020\/10\/Nudge-biases-in-investing-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1707\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Rina Shah\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Rina Shah\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.shortform.com\/blog\/myths-about-money\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/myths-about-money\/\"},\"author\":{\"name\":\"Rina Shah\",\"@id\":\"https:\/\/www.shortform.com\/blog\/#\/schema\/person\/d07435826f13a8f422d5d333dceac287\"},\"headline\":\"14 Myths About Money: Are You Being Fooled?\",\"datePublished\":\"2020-11-01T01:24:00+00:00\",\"dateModified\":\"2020-11-11T21:28:15+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/myths-about-money\/\"},\"wordCount\":488,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/myths-about-money\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2020\/10\/Nudge-biases-in-investing-scaled.jpg\",\"keywords\":[\"The Total Money Makeover\"],\"articleSection\":[\"Money\",\"Psychology\",\"Self-Improvement\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.shortform.com\/blog\/myths-about-money\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.shortform.com\/blog\/myths-about-money\/\",\"url\":\"https:\/\/www.shortform.com\/blog\/myths-about-money\/\",\"name\":\"14 Myths About Money: Are You Being Fooled? - Shortform Books\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/myths-about-money\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/myths-about-money\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2020\/10\/Nudge-biases-in-investing-scaled.jpg\",\"datePublished\":\"2020-11-01T01:24:00+00:00\",\"dateModified\":\"2020-11-11T21:28:15+00:00\",\"description\":\"Are there myths about money that are keeping you from taking control of your financial health? 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