Money Myths - Top Five Excuses Holding You Back From Wealth

At thirty-five, I find myself feeling old and dated. I think back to my youth, before the Internet, a TV in every room of the house and the major social taboo was sex. Today, the new shame, the new taboo, exists outside of the bedroom. We don't dare ask a potential spouse about their spending habits, credit history or assets for fear of being thought of as a swindler. It would be boorish to ask a friend what her bonus was this year and rarely will golf mates honestly discuss financial troubles on the greens.

Why has talking about money and the lack thereof, become the accepted pink elephant at each and every cocktail party?

Read on to discover the top five money myths that, with some simple awareness and courage to speak the unspoken, could change your financial future.Myth #1: Money doesn't buy happiness.
Think back to your early days of math. Two plus two equals four and what's on one side of the equal sign has to correlate to what's on the other. You can switch the numbers up - one plus three equals four but three plus three will never work.

I get asked this question often from audiences: does money equal happiness? Perhaps out of politeness or not wanting to sound greedy or because of past societal conditioning, most often I get a resounding NO, money does not equal happiness. So then, the opposite must be true – does the lack of money equal happiness? Of course not. If one doesn't have enough to feed their child, keep a roof over their head or help an elderly parent, how could that ever amount to a happy life? Where and when were we fed this lie that people who have money aren't happy because of their abundance? Sure, I've known people with millions of dollars that weren't always happy, but it wasn't because of their money. And yes, for the mis-matchers out there, some people are happy regardless of their financial situation. But for the most part, consider this simple distinction; money affords more opportunity for greater happiness. It affords a better school for your kids, better health and the prospect of serving those in your community. Let's shatter this taboo that there's something wrong with pursuing money.

Myth #2: I have money problems.
Um, unless you have copious amounts of money, you don't have "money" problems. What you likely have is a "lack of money" problem. Having more money solves many problems that I can think of. An elementary distinction yet a profound illumination. See Myth #1. Money is rarely a problem. The lack of it can cause crime, divorce, starvation and more. Seeing money as a problem holds you back from the real solution to your financial situation.

Myth #3: If I only had more money, my money problems would be over.
Tell that to the majority of lottery winners that not only lose what they've won in a few years but are also worse off financially than before they won their winnings. I know you and I wouldn't do that, but it's a statistical fact. Why does someone who's lost a hundred pounds or had a medical procedure to staple their stomach still gain all the weight back and often many times more? Quick fixes are fun to day dream about, but they don't last and are rare. What you can control is the amount of money you hold onto. Many of my past wealthy retiree clients were of modest means and income during their lifetime. They were good savers and watched their expenses and were creative with increasing their income. I equally counseled many individuals that made seven figure salaries each year and retired with millions of dollars in debt. If you don't save when you're making $40,000 a year, you likely won't when you're making $240,000 a year. Start with what you have now and invest a portion of it.

Myth #4. I'm just not good with numbers.
Financial calculators are not required to open up your credit card statement, get on the phone and negotiate a better interest rate. Dusting off your mortgage document and calling your banker to determine if recent rate changes could save you thousands in the life of your mortgage doesn't require any number crunching either. Nor does getting online and Googling investing basics when your child asks what the heck the NASDAQ is, after hearing the evening news report. You just need a healthy dose of interest and awareness.

Myth #5. I'm just not interested.
Pardon me? How is one not interested in potentially saving thousands of dollars in interest on debt, bank fees, protecting their credit and identity? As with your health, we know today that we must hold our medical professionals accountable and so must we take the same level of interest and preparation with our financial advisors. Who will care more about your money than you?



Kelley Keehn is a financial expert, speaker, author of seven books, and was the host of W Network's Burn My Mortgage. She's also a weekly contributor to the Globe and Mail. For more information, visit www.kelleykeehn.com.

Do you have a money question? Drop Kelley a line at wealth@kelleykeehn.com. Do yo