Myths and Facts about Money

Understanding the Nature and Purpose of Money

Many people journey through the school of life wondering, ‘What is money really about?’ More importantly, some ask themselves, ‘How can I overcome my financial probl0ems? Moreover, Has your ATM ever rejected you because of unwithdrawable account balance? Do you usually spend money without a budget? Have you ever spent windfall cash in your account without first finding out the source and budgeting for it? These questions sound simple and commonplace but challenging when it comes to writing down the answers. They have a direct connection with the mind. That is, your attitudes, perceptions, beliefs and feelings which are determined by your sub-conscious mind.

The subject of money is very controversial, emotive and tabooed or hardly spoken about in many African societies. Despite its numerous benefits as a store of value and an enabler, money is the most nicknamed concept in all human languages. Some call it a flower, blesser, the heart and soul of life while others refer to it as a killer, idol, something evil and mysterious. The million-dollar question is: Why is money negatively or hardly talked about, mostly misunderstood and a highly controversial subject?

Our money habits and patterns of spending are directly proportional to our personal experiences as we grew up, thoughts and beliefs formed over time. Similarly, socialising agents such as the family, neighbourhood, peer group, church, school and mass media create diverse beliefs about money and wealth creation. This calls for a paradigm shift!

As a child, I heard a number of common sayings that were used to describe the concept of money, and to a large extent, are still used to date. In essence, a myth is a certain belief or idea that is widely held, but one that is actually false.

Myths about money

Some of the myths about money are outlined below; see if you can identify some that you have heard, or have come to believe.

1. Money does not grow on trees, meaning that money is scarce.
2. Money is not meant for children.
3. Money is the source of all evil.
4. Money is not the source of happiness.
5. Money talks, that is, you can easily identify a person who has money and one who does not.
6. Man made money, and money made man mad.
7. It takes money to make money, that is, you cannot start a business without money.
8. The rich are lazy, corrupt, greedy and ignorant.
9. You can only save and invest when you have a lot of money.
10. You can’t serve two masters at a go.

Facts about money

Some facts that we need to consider about money include:

1. Money is not evil but people are. That is why people kill for money or steal to attain their evil desires.
2. Money is a good servant but a bad master. Understand how money works so that you do not end up as its slave, but rather make it your faithful servant.
3. Money has no character of its own. It takes the character of the one who holds it.
4. The true value of money is in the hands of the person who possesses and uses it the way he or she desires.
5. Money never gets finished. It only changes hands or residence on account of one’s choices, values and spending habits. There is no little nor large amount of money. Any amount of money can be spent wisely to achieve what you want.
6. The more you earn, the more you are likely to spend. A well-paying job cannot guarantee you the best lifestyle as compared to income-generating assets.
7. Money cannot give you peace but the lack of it can take away your peace or give you sleepless nights.
8. Since money is both a seed to be planted, and a fruit to be eaten, it is important to understand what should be planted and what should be eaten.
9. Saving today helps you delay gratification until tomorrow. Saving for a rainy day will cushion you against emergencies and consequent financial embarrassment.
10. It is important to ‘spend time’ with your money to understand it, so that you can make the best decisions about it. This can be done through budgeting, planning, and acquiring financial education on how to handle the money in a better way.

The myths and factual descriptions about money are not conclusive. However, they underscore the basic underlying financial beliefs and principles that govern how money works.

Financial food for thought

T. Herv Eker, the author of "Secrets of Millionaire Mind," observes that every person has a financial thermostat, blueprint deeply ingrained in our subconscious mind that determines our money habits such as how one utilises money.

Task: What are some of the myths you have heard being repeated, or even come to believe are true about money that this lesson has brought to your attention?