What Misconceptions do You Have About Money?

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Many of us are under the impression that finanacial well-being is defined by how much money
we earn or by how much money we have. In reality financial well-being has more to do with
how well you manage the money you have and how well you sleep at night. It is more about
what the money represents than the money itself. To most people money represents security.

In an inflationary economy, using credit to purchase things under the assumption that money
will be worth less tomorrow than it is today is an unwise practice. Credit card debt should
be avoided at all cost. Balances not paid in full monthly will be assessed a finance charge,
more than negating any time-value-of money savings.

Some people belive that once you are in debt it is impossible to become wealthy. This is not
true. With some planning and lifestyle changes, like most other things in life, you can rise
above your debt and become wealthy.

Financial success is mostly the result of following processes and having a plan. It is not
the result of who you know, what you know or how lucky you are.

If you are having problems paying your credit card balances in full each month, it is time
to consider cutting up the cards. Do not use your credit cards to finance your standard of
living. You will get more satisfaction from being debt free than you will having things.

Having a home equity line of credit is not a good thing, unless it is absolutely necessary.
This is usually a large line of credit with a low interest rate and can be very tempting to
someone trying to get their finances under control. Getting past these money misconceptions
is a valuable step in achieving debt freedom.