9 Financial Myths I Stopped Believing

I grew up hearing a lot of old-school advice about money. Things like “Debt is always bad” or “You need to be rich to invest.” For years, I took those sayings as gospel, not realizing how much they were holding me back. One afternoon, after sitting down to help my daughter Emily with her first budget, I found myself questioning some of those so-called “truths.” It made me reflect on how much of what I’d believed about money was based on outdated ideas, not real experience. That moment sent me down a path of learning—and unlearning—what really works.

If you’ve ever felt stuck because of advice that didn’t seem to fit your life, trust me, you’re not alone. Today, I’ll share nine financial myths I stopped believing, and five key truths that helped me move forward.

1. Renting is spending money down the drain

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I initially thought that renting equaled frittering money away, yet having a house entails its secret expenses—maintenence, property tax, and repair. Renting accommodates flexibility, at times with financial gains much larger than property ownership could be. Currently, I create my own means towards achieving my independence in riches.

2. One has to have a six-figure income in order to be rich enough

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I thought that earning more money was the key to advancement, but that is not the case with financial freedom. It’s not even about making lots of money. Budgeting, investing, and resisting lifestyle inflation are more important than a fat paycheck. I know individuals who earn modest incomes but retired early simply because they were savvy when it came to spending.

3. Credit cards are evil

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I once believed credit cards were money traps, but the trap is actually using them improperly. Used responsibly—paying balances in full and leveraging rewards—they can be effective financial tools. Now, I get cashback and travel rewards while having an excellent credit score.

4. A college degree ensures success

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I was led to believe that a degree meant money, but I have watched many graduates drowning in debt and with no idea how to break out. Education is worth it, but skills, experience, and networking are often more critical. Today, I focus on acquiring high-income skills rather than on accumulating diplomas.

5. Investing is only for the wealthy

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I once thought you needed thousands of dollars to start investing, but that’s far from true. With fractional shares and commission-free platforms, I started with as little as $5. Now, my money works for me, even while I sleep.

6. A high credit score means I’m financially healthy

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I used to be fixated on my credit score, believing it was the measure of my financial success. But a high score doesn’t equate to wealth—it only means I’m good at managing debt. Real financial health is savings, investments, and independence from unnecessary debt.

7. More money fixes all financial issues

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I used to think that making more money would solve all my problems, but bad money habits do not go away with a larger salary. Without discipline and proper budgeting, I would end up spending more and remain in the same rut. Now, I am concentrating on holding onto more of what I make rather than making more.  

8. You have to pay off all debt before you can invest

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I used to believe that every penny needed to go toward debt first before I could begin investing, but I have come to understand the importance of balance. Getting rid of high-interest debt is essential, but procrastinating about investing means forgoing precious years in the market. Now, I do both—aggressively pay off debt while regularly investing.

9. Succeeding financially is not being able to struggle anymore

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I thought that once I reached a certain financial milestone, my stress would melt away. But money does not eradicate stress—surprise expenses, market fluctuations, and life events are unavoidable. The true secret is to have a plan, be flexible, and develop resilience in the process.

Letting go of these myths opened up so many opportunities I would’ve missed if I kept clinging to them. It taught me that financial wisdom isn’t about following rules blindly—it’s about being open to learning and adjusting as life changes. Once I challenged these outdated beliefs, I gained confidence in managing my money my own way. Here’s how you can break free from common myths:

Myth: Debt is always bad — I learned that using a credit card responsibly and paying it off monthly actually helped me build a strong credit score.

Myth: Investing is only for the wealthy — I started with small contributions to my 401(k), proving that even modest investments can grow over time thanks to compound interest.

Myth: You shouldn’t talk about money — Mary and I made it a point to have open, honest conversations about our finances, which helped us avoid misunderstandings and stay on the same page.

Myth: Renting is throwing money away — When times were tight, renting gave us flexibility and prevented us from getting stuck in a mortgage we couldn’t afford.

Myth: You need to buy new to have quality — I’ve bought reliable used cars, tools, and appliances over the years, saving thousands without sacrificing quality.

Challenge the advice you’ve been handed and don’t be afraid to carve your own path. Financial freedom often starts when you stop believing everything you hear and start trusting your own common sense.

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