When it comes to personal finances, there are many who govern their savings based on preconceived ideas that they acquire throughout their lives that, although some work for them, others suppose a constant financial failure from which they do not know how to get out.
In Romeo we have decided to shed a little light on this whole issue, collecting the most widespread financial myths so that you begin to change your luck and powers once and for all your saving capacity; D Pay attention! Because this interests you:
The budget is one of the best ways to save money
Totally true, but it is very important to know how to make a budget, since it is not the same to budget for the purchase of a single item than the purchase of several.
A study by Brigham Young University and Emory University showed that a person who sets a budget for the purchase of a single item consumes up to 50% more than a person without an established budget.
This is because when you set a budget for a specific item, € 1,000 for a new TV, for example, searches for a new TV are usually around that € 1,000, without bothering to find even cheaper deals.
This effect usually takes place only when it comes to an individual purchase, as we mentioned earlier. However, the budgets that are used for various products such as food, help the user to save money, so be careful when setting your budgets!
To be totally sure not to screw up, use financial tools like Romeo that, thanks to its technology, will help you create a budget by setting a spending limit by categories (housing, electronics, supermarket, gasoline, children’s school …), in this way you will have real control of everything that happens in your accounts without having to move a finger!
Earning more means having more wealth.
This is not true, since wealth depends on a lot on one’s level of education. A person who earns more, has greater borrowing capacity or, as Stephen Goldbart says, co-author of the book “Affluence Intelligence” and co-founder of “Money, Meaning & Choices Institute” (a company located in San Francisco that offers advice for rich clients): “The more you earn, the more you spend.” People acquire more money, they begin almost immediately to acquire all those things they always wanted, instead of thinking about the percentages they have to save to ensure a good future and the consequences of changing consumption habits.
Money does not give happiness
Money is closely related to happiness, especially for people with lower incomes. According to a study by Princeton University, the people studied who increased their income improved their overall life prospects. The study showed that regardless of social class, a salary increase proportionally increases one’s happiness.
We can’t ignore the obvious, and there are things that money can never buy: the love or respect that one gets from others has a much greater impact on our happiness than the volume of income, as a study by the University shows from California, Berkeley .
You have to go to college to earn more money
Although it is true that a prepared person has more opportunities in the workplace, this does not mean that they earn more than another person with lower education … If so, all professionals would be millionaires.
In the real world, which ultimately matters much more than university education is the ability to generate value. That is, At the moment of truth, what matters is the professional experience and your contribution to the company. Nobody hires you just got a bachelor’s degree or a more prestigious Master’s degree from the University.
Are you financially prepared
It may be, but considering that 49% of Spaniards lacked savings capacity within the family nucleus last year, the conclusion is that practically half of Spaniards are not.
90% of Spaniards spend all their money without knowing very well what, according to a study by Esade. According to the report’s author, Gerard Costa, “most Spaniards have accounting in their heads, which makes it difficult to precisely control spending.”
Although spending made on Spanish households has dropped more than 21%, from € 33,000 to € 26,000 from 2007 to 2012, we still don’t have a culture of managing the domestic economy, says the report, according to which we only do accounts at the end of the month, when it is too late.