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Have you been lied to about what it takes to save money? So many of us have been told that the road to savings and financial freedom is one of self-denial. What if that wasn’t true?
The reality is that some of the money-saving myths we live by actually set us back on the road to financial freedom. Busting the worst money-saving myths empowers us to make better financial choices.
Splurging on the right things in life, instead of denying yourself, can help create a more realistic road to financial freedom. That’s why we’re busting the 13 biggest money-saving myths right here, right now. Move beyond the financial confusion to find a practical balance between frugal living and a life you can enjoy.
1. Myth: Cut the Small Expenses to Build Wealth
While it may be true that your daily coffee runs and streaming subscriptions add up, cutting corners on your smallest expenses won’t boost your bottom line. Instead, it’s better to look at the big picture. What are you spending on income, housing, and transportation? Making these adjustments equals bigger savings results.
2. Myth: You Have to Be Rich to Save Big
Many of us have accepted the myth that we have to make a lot of money to save a lot of money. That isn’t necessarily true. High-yield savings accounts are a great way to save money, no matter how much you make. With interest rates starting at 4.5% or more, these accounts can add up to big gains over time.
3. Myth: Financial Advisors Are Only for the Rich
In the same vein as the myth of saving money, we have played into the idea that financial advisors are only for the super-wealthy. That’s not entirely true. While not everyone needs a financial advisor, they can be helpful (and affordable) at all stages of your financial planning journey. Many even offer hourly and by-project rates.
4. Myth: Living Luxuriously Isn’t Realistic
In a society obsessed with flashy lifestyles, it’s easy to get caught in a game of catch-up. However, you don’t need to spend a lot of money to live a comfortable or luxurious life. Focusing on spending time with loved ones and sharing experiences is a better way to use your cash. Creating comfort can be accessible, too, for a creative person who knows what they want.
5. Myth: Travel Is Too Expensive to Be Accessible
Travel is a great way to open the mind and create new opportunities. It’s a myth that travel isn’t affordable or that it’s out of reach for anyone but the wealthy. By traveling during the off-season, planning well ahead of time, and using discount sites and alternative accommodations, it’s possible to make travel a part of your lifestyle…even on a budget.
6. Myth: Luxury Items Are a Waste of Money
When living frugally, luxury purchases can seem like a waste of money – and many of them are. Some luxury items, however, last for years. Over time, you can save money on the frequent repurchase of fast fashion items like bags, coats, and shoes. Splurging on the right luxury items, like long-wearing capsule items, is a wise approach.
7. Myth: There’s No Money for a Personal Trainer
A terrible myth is that splurging on health is a waste. Many ignore the healthy option until it’s too late. With physical health, splurging here and there can be a great idea, even on a budget. Take personal trainers, for example, who can create customized workouts that are specifically tailored to meet your diet, fitness, and health goals.
8. Myth: The Bare Minimum Is Good Enough
Those who are saving often choose the bare minimum with insurance and other preventatives. This is a bad idea. While cutting corners can seem like savings in the beginning, it can lead to financial disasters when emergencies arise later on. Splurging on the best insurance for your needs is important in planning for your physical and financial future, even if you have to spend more to get it.
9. Myth: Settling for Subpar Saves Money
Some people think that buying lower-quality goods is the shortcut to a better budget. Unfortunately, that’s not true. For example, if you’re spending more time at home cooking meals to save money, splurging on quality knives and utensils can avoid frustration and unexpected spending in the future. Using higher-quality goods can be a direct investment in the quality of your life.
10. Myth: Sleep Doesn’t Factor Into It
The value of a good night’s sleep can’t be underestimated. We need sleep to function at work and in our relationships. Spending money on a high-quality mattress can improve the quality of your sleep and, therefore, your ability to perform effectively in your day-to-day life. You spend about a third of your life sleeping. It’s important to do it well.
11. Myth: Appearance Doesn’t Matter
Physical appearance, the way we dress and present ourselves to the world, can affect how we feel about ourselves on the inside and outside. Splurging on your appearance from time to time so you feel confident and comfortable in your skin can help improve mental health in the short and long term.
12. Myth: It’s Okay to Cut Corners on Tech
Cutting corners on the technology you use can cost a lot in the long run, especially if working on the go or from home. Spending thousands on the most expensive computer in the shop isn’t necessary. Still, it’s okay to splurge on the right tech so that you get tools that are long-lasting and efficient for your needs.
13. Myth: Home Comforts Are Out of Reach
There’s a myth that people who are saving money don’t deserve comfort or luxury. However, studies have shown that having a comfortable living environment can help promote well-being. Splurging on organizing solutions and creature comforts that make your home spaces clean and cozy can help you recharge and clear your mind.
