9 Misconceptions (Myths) About Money the Masses Don’t Know
People tend to make money mean what they they believe it to be, not what it actually is. They seemingly carry their religious, cultural, environmental and parental beliefs around money, like it’s the root of all evil, doesn’t grow on trees and makes people greedy and power hungry. None of these are actually true, because money is not conscious, it cannot think, judge or decide. It can only perform a limited range of functions, as a tool, or lever, as instructed by the current bearer. For example, a hammer is a very effective tool and hammering in a nail to a piece of timber is far better than using your hand. It’s also more effective at smashing in someone’s skull, but we don’t put the hammer on trial for murder. The hammer isn’t sentenced, because it’s a tool used by a human with ill motives. Money is the same kind of tool, yet so many people judge money instead of the person’s motives towards money.
What are some myths people believe about money?
If money is a tool that can be used for ill, greed and power, then by definition as an effective lever, it can also be used for great good, kindness and philanthropy. Money becomes what values and beliefs you project onto it, and can fuel wars or cure disease. So the question is, how will you use it?
In order to use it as an effective tool, you need to hold positive and accurate beliefs on what it actually is and is not. So here are 9 misconceptions about money, and the alternative, upside, or actual reality of how money works.
We’ll call them ‘MYTHS:’
Myth 1. Money, or the love of money, is the root of all evil
No, money is not conscious and cannot judge or feel or act alone. Humanity is the root of all evil. And therefore, humanity is the root of all good too. Money is simply a tool with no emotion, yet an effective, universal exchange of value. It isn’t good or bad, but it measures and exchanges value, products and services efficiently between people, all across the globe. Money reduces friction and increases speed. Money becomes what the current bearer projects onto it.
Myth 2. Profit is the purpose of a company or an Entrepreneur
Profit is not the purpose of an Entrepreneur. The purpose of a company or Entrepreneur is to create useful products and services that make people’s lives easier.
The outcome: the result and reward, is profit. It’s not the purpose. If people felt you were selling to them only or primarily for profit, they wouldn’t trust you. If they felt you wanted to serve them well and offer them value, they would trust you and be happy for you to make fair profit.
Serve first, profit second.
Myth 3. You get paid upfront for your work
No, you get paid last, but you must pay yourself first.
When you work as an employee or you’re self-employed, you do the work first, then get paid later*. You get paid 30 days after work, or send the invoice once the work is complete. But, when you get your money, you must pay yourself first. You save and invest before all your bills and taxes and expenses consume all your earnings. Always do the job you want, not just the job you have, and always do more than you’re paid to do. Then you’ll be paid more.
*Unless you are a prostitute or a drug dealer, in which case it is wise to get paid upfront.
Myth 4. Money changes you
Money does not really change you. You are already you. Money generally makes you more of who you already are, by exaggerating your existing traits. Money is a great enabler of both good and bad intentions and amplifies your intentions as a lever.
Myth 5. It takes money to make money
No one is born with money. Even those who inherit money, usually do so when they’re an adult. It’s actually challenging to take money you haven’t earned and invest it wisely. It takes resourcefulness, creativity, innovation, energy exchange, value, passion, enthusiasm, marketing, story-telling and other HUMAN resources to make money. You can just as easily lose money as make money. If you lose money, these HUMAN resources can make it back. EVERY human being is born with these great traits.
MYTH 6. Money doesn’t make you happy
I find that mostly billionaires and zero-aires usually say, ‘money doesn’t make you happy’. It’s easy for a billionaire to say, who has more than enough already. And zero-aires who say this are sometimes bitter or have given up on wealth. And how would they even know if they haven’t experienced it yet? Technically, money alone doesn’t make you happy, but more money gives more freedom and choice, and enables the things that make you happy, so money is the enabler of happiness.
Myth 7. Time is money
No, time is not money. Tasks are money. You can do something for five minutes and make thousands, or for five hours and make nothing at all. Build assets that endure, regardless of how much or little time they take. Measure task value, not time value. Aspire to work smart, not just hard, and create leverage of time, people, systems and other levers to achieve and make more, in less time.
Myth 8. Save your way to wealth
It’s tough to save your way to wealth. It takes too long. Inflation is too high. Spending is too tempting. You need to invest, and then speculate your way to wealth. Saving has no interest, and won’t get you there alone or in this lifetime.
Myth 9. CASH is KING
Cash-FLOW is king. As above, cash goes down in value with no interest and high inflation. Cash is not guaranteed over a certain amount by banks, and is at risk from scams and your emotional spending. Invest in assets that produce income, and that income will keep coming. Cashflow is king, and assets protect cash. Invest and re-invest income from assets into assets, and even when you spend your cashflow, it just keeps coming residually and relentlessly.
Change society-imposed beliefs around money to empowering and accurate beliefs, and money instantly changes for you, going from scarce to abundant and from a slave to it to a master of if.
If you don’t risk anything, you risk everything.
Author of “Money”
Host of the “Money” podcast