6 “Commonly Known” Money Rules That Are Dead Wrong!

This article and accompanying video discusses six money rules that are often wrong, or at the very least applied incorrectly.

We human beings like heuristics – rules of thumb that make a complicated subject easy to understand. Some of the most common heuristics revolve around money rules. Why, because money is a very complicated subject for most people and getting it approximately right is better than guessing. But with the creation of the heuristic comes the ability for someone to explain something to someone that sounds right, but is actually wrong.

Let me give you an example of an easy one: “Money is the root of all evil.” Simply put, it is not. Bad things can be done with money no doubt, but some very good things can be done as well – look at most charities. So to say, money is the root of all evil is just incorrect. If someone hears that, they might not fully believe it, but it does create a subliminal undertow.

If they did fully believe it, what does that rule of thumb do? Well first it creates a conflict in someone who wants to be a good provider for their family, get ahead in their career, or simply does not want to live from paycheck to paycheck! If earning a living is evil, then people will do as little of it as possible!

By the way, that one was so obvious that it is not one of the “six.” The six are far less obvious and far more dangerous if applied incorrectly, and in the case of some, if applied at all!

Check out the full video below.