5 Money Myth You Don’t Learn In School

5 Money Myth You don’t Learn in School

Did your school teach you anything about money? Actually, we didn’t learn anything about money when we were schooling. Oh wait, perhaps there’s one, it is spending. The rest are probably just myths.

There are some myths about money that we commonly come across in our daily life. There are on the backdrop of most people mindset. These are perhaps the reason they are not in control of their life as well. Maybe these are also your beliefs too.

We hope that by writing about these myths will help you see the bigger picture with more clarity and on your way to be in charge of money, and take full control of your life.

Having More Money Will Make You Rich

Our expenses (lifestyle) is like a boat in an ocean, and our income is like the ocean. When the water level rises, the boat will also rise in tandem. Therefore, having more money will not make you richer because you will be spending more by then.

That is probably why a person who is earning RM 20,000 a month will have his or her fair share of financial issue, just like the other person who earns less than RM 5,000 a month.

Myth-busted: It is more about how much of your earning do you keep that will determine if you can ever be rich. 

Invest When You Have More Money

The wait for the day you will have more disposable money to invest will probably never come naturally. As explained in the previous point, as more income is earned, we will spend more as well.

In order to build wealth, you should not wait until you have more disposable income. You should start as young as possible, and as early as possible.

A person who is now 25 year-old who keep aside RM 200 a month for 10 years, will have RM 162,050.99 at 55 year-old if this investment earns an annual compounded return of 8% p.a. On the contrary, if this person waits until he is 35 year-old only start to invest RM 200 a month for 10 years in the same investment, he will only have RM 56,651.51 at 55 year-old.

Myth-busted: Same person, same amount, same investment, but the result is so much different. Start young, it never hurts.

Cash Is King, It is Safest In the Bank

You read this from variety of media and people around you, “cash is king”. Does it means that you should keep your money in the form of cash and be content with it?

The truth to the matter is you will be hurt financially if you hold cash, or keep your money in the bank only. While you may not feel this impact in the short-term, you will definitely be able to feel this in the long-term.

This is due to inflation, which simply means how fast prices go up, or how fast money shrinks in value. That is what common people describe as “money getting smaller”.

Prices for everything will tend to go up over the long-term. Price of food, price of fuel, price of services, price of houses, etc. But value of money do not grow. You need to invest the money on top of your emergency fund so that you can protect it from inflation.

Myth-busted: Cash in bank is very safe, it is the sure way for your money to depreciate in value.

XXX Is The Best Investment.

You can substitute XXX with many things.






When we invest into something, our end in mind is to have more than we initially put in. The type of asset mentioned above can help us grow our money, but each asset type do have their fair share of good and bad year.

There will be years you find stock doing very well, but some years not so good. There are times stock investors are losing out but bondholder have complete opposite experience.

The truth is that economic cycle and condition is not static. In some economic condition, certain asset class will do well but not so well in another set of economic scenarios.

Therefore, to really see your investment portfolio grow gradually, you should have a diversified portfolio that have exposure in different type of asset class.

Myth-busted: Asset class, like people, they behave differently in different condition and scenarios. A diversified portfolio will allow you to grow your money steadily.

All Plans Are Bound To Fail, Why Bother?

Ironically, there’s also another saying that goes this way, “People don’t plan to fail, they just fail to plan”.

Which side are you on?

The truth is that planning does not guarantee us success, but it helps us to forecast and anticipate what is in the journey ahead of us so that we can be in the best position to deal with it.

A GPS navigation app helps us to get from one point to another point by planning out the journey. Such app helps us to drive with a peace of mind knowing we will get to the right destination. It guides you on when to turn right, when to go straight; and if you took a wrong turn, it has the ability to improvise and keep you on track. Say the condition on the road changes when you are half-way there, it will update you with a new ETA, or provide you another route that can get you to your destination soonest.

That’s the same with planning out your life. You got to think ahead instead of letting circumstances and events dictate your options. Committing to making plans does not mean you need to forget about your lifestyle and live frugally.

Myth-busted: Making plans allow you to see ahead and understand how each of your big decision will affect the future, so that you can make a decision that is really good quality.

“If you don’t know where you are going, you may not like where you end up at.”

Don’t let life push you around. To take full control of your life, you just need to start by starting. If you wish to learn more about personal finance, you can follow our FaceBook or Instagram for more regular update.

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