Introduction
Many people believe that having more money would solve all their problems. They think that earning a higher income would eliminate future worries or justify splurging on luxury items. However, these are lies we tell ourselves about money that keep many people trapped in a cycle of anxiety and debt.
1. I’ll be happier when I have this amount of money
The magic number could be $100,000, a million, or even triple your current income. But the truth is that money itself does not buy happiness, stability, or peace of mind. It’s a tool, not a destination.
While more money certainly helps, it’s not a quick fix for all your problems. In fact, if you don’t know how to manage what you have, it could even worsen your situation. Psychology and reality both confirm this.
Many lottery winners in the U.S., who become millionaires overnight, spend their fortunes within a few years. This is because as income levels rise, so do expenses, often exceeding the increased income. The key is not chasing numbers but learning to manage what you currently have.
2. I deserve it, even if I can’t afford it now
This is the favorite excuse of consumerism. “I deserve those shoes,” “I work hard and deserve a vacation,” or “I deserve to spend more than I earn monthly to see my favorite artist live.”
Treating yourself occasionally is fine. However, deserving something doesn’t mean you should have it right now. The problem arises when we confuse desire with need. For example, spending $18,000 pesos on a concert ticket, arguing that “after all the hard work, I deserve it.” The result? A debt that will haunt you for months or even years. That’s the difference between a “want” and a “mistake.”
If it’s beyond your reach, this “deserving” becomes a trap. Enjoying life is fine, but it’s risky to use your future earnings to pay for present indulgences.
3. I have great willpower
We convince ourselves that discipline alone will solve everything. “This time, I’ll stop using my credit card,” “I’ll save 20% of my salary,” or “I’ll control my expenses without help.” However, willpower tires if not exercised. It’s great to have it, but you can’t rely solely on it. Without a strategy, a system, or structure that works for you, willpower alone won’t suffice.
Remember, planning, consistency, and discipline are what sustain change. Not enthusiasm.
4. It won’t happen to me
This is a common misconception. People underestimate risks, believing they are unrelated problems. “I don’t need health insurance because I don’t get sick, and it’s too expensive,” or “There won’t be an economic crisis, and I’m not at risk of losing my job.”
Life is full of surprises. Lacking an emergency fund or necessary insurance is like driving without a seatbelt: eventually, something will hit you.
Planning isn’t paranoia; it’s realism. It’s simply about being prepared for life’s curveballs. Certainty is absolute; it doesn’t exist. If you play with fire, you will eventually get burned.
In this space, I’ve shared stories of people losing everything during the 1985 earthquake when I was only 11. I witnessed entire families living in tents amidst the rubble of their former homes because they had nowhere else to go. If only they had insurance.
In part two, we’ll discuss three more lies we tell ourselves about money, such as “I’ll save more in the future” or “I’m too young to think about retirement,” which are unfortunate. Most people I’ve helped regret not starting earlier.
Key Questions and Answers
- Q: Will having more money make me happier? A: Money can contribute to happiness, but it doesn’t guarantee it. The key is learning to manage what you have effectively.
- Q: Can I justify expensive purchases because I work hard? A: While treating yourself occasionally is fine, confusing desire with need can lead to debt.
- Q: Can willpower alone solve my financial issues? A: Willpower is essential but should be part of a broader strategy, including planning and consistency.
- Q: Should I worry about potential financial risks? A: Planning for unexpected events is crucial. Not having necessary insurance or an emergency fund can leave you vulnerable.
