Money Myths That Kept Me Broke
For the longest time, I thought I had my finances figured out. Can you imagine with all the budgeting and saving, but here's a thought of “Why am I still stressed about payday?” creeps in. And there I realized that I wasn’t just managing money poorly—I was living by money myths that kept me broke. These were full-on mindset traps that kept me in a cycle of scarcity and stress.
The crazy part? I didn’t even know they were myths at first. They sounded so right—the kind of advice you hear from society. Oops, don't get me wrong here as there are money experts who generously share tips. I just mean to be wise what's applicable or doable for you. Going back to what I'm saying, when I finally let go of these myths and started making smarter and more intentional money moves, it felt like I’d unlocked a cheat code for my finances.
So, if you’re tired of feeling like you’re spinning your wheels or wondering why your budget always feels like it’s missing something, you’re in the right place. I’m about to spill the tea on five money myths that kept me broke for way too long—and, more importantly, how I finally broke free from these myths.
Let’s debunk these money myths together and set the record straight, shall we?
Myth #1: You Need to Make a Lot of Money to Save
One of the biggest barriers to saving isn’t your paycheck—it’s your perspective. If you think saving is impossible because you don’t make enough, you’ve already set yourself up for failure.
But flip that mindset and you'll see the game changes. Instead of seeing saving as something you do after paying bills and treating yourself, think of it as paying yourself first. Even if it’s just a small amount, prioritize it. When you treat saving as a non-negotiable expense, you’ll naturally adjust your spending to fit what’s left. From someone who found saving as hard as it is because of responsibilities, I really could say my changed perspective helps me to consistently save first before spending.
Now, challenge yourself as I did too. Make saving a game. Set small, achievable goals like saving ₱500 in a month, then reward yourself in a way that doesn’t derail your efforts. It’s not about sacrifice but of creativity. Swap expensive outings for free or budget-friendly alternatives. Or, try a “no-spend” weekend—it’s surprising how enjoyable it can be to find joy in the simple things.
Finally, keep your “why” in mind. Why are you saving? Is it for an emergency fund, a dream vacation, or to feel more secure about the future? When you tie your savings to something meaningful, it becomes easier to stick to the plan.
Note to Remember: "Saving isn’t about how much money you make. It’s about how much you’re willing to prioritize your goals."
Myth #2: Debt Is Always Bad
How do you figure out whether debt is working for you or against you? It all boils down to the following questions which I’ve been asking myself whenever I engage in debt:
Does it help you build wealth or opportunities?
If the debt gives you a chance to grow—like financing education, starting a business, or buying property—it’s a good debt.
Is it manageable?
A manageable debt fits comfortably within your budget. If repaying it doesn’t cause you to lose sleep or miss essential expenses, it’s likely on the safer side.
What’s the interest rate?
High-interest debt, like credit cards or payday loans, can quickly become a problem if it’s not paid off promptly. On the flip side, low-interest loans with clear terms are much easier to manage and may even be beneficial.
Furthermore, debt doesn’t have to derail your financial goals—it can even help you achieve them when used smartly or strategically and pave the way to financial growth. How? First thing first, borrow only what you need. Avoid the temptation to max out your borrowing limit just because it’s available. Also, have a repayment plan. Before taking on debt, map out how you’ll pay it back. Consider monthly payments, interest rates, and how quickly you can close the balance. Thus, aim for low-interest options and a short repayment period.
Now, it’s time to challenge the stigma around debt. Instead of labeling it as “bad,” let’s reframe it as a tool that can either build or break your financial foundation. That's why I consider this (debt being always bad) as one of the money myths that kept me broke.
Note to Remember: "Being financially savvy isn’t about avoiding debt altogether; it’s about understanding when, why, and how to use it. So, the next time you think about borrowing, ask yourself: Am I using this debt to build a better future? If the answer is yes, you’re on the right track."
Myth #3: Investing Is Only for the Rich
Honestly, this is one of the most misleading money myths that kept me broke. The idea that investing is only for people with lots of money is simply not true. You don’t need to wait until you're sitting on a mountain of cash to begin investing. In fact, one of the best things about investing today is that anyone can start, no matter how big or small their budget is.
Have you heard about Modified Pag-ibig 2 or MP2? If you’re a beginner in investing like me, this is best for you to start with. You only need to invest a minimum of ₱500 and this investment tool has an option to receive its dividends annually or after the 5-year term. The good thing about MP2 is that over the years, interest rates increase. Isn’t that a good start to engage in investment even if you're not yet rich?
Here are guides about MP2 you can check with:
Note to Remember: "The key is to make investing a habit, not something reserved for the rich. And it's not about how much money you start with; it's about being consistent and making smart choices over time."
Myth #4: Budgeting Means No Fun
If you’ve ever thought that budgeting is all about depriving yourself of the things you love, it’s time to bust that myth! The truth is, budgeting is not about saying no to fun—it’s about saying yes to the things that truly matter to you while being mindful of your spending.
Imagine you’re planning a family dinner. With a budget, you can still enjoy these moments. Having a little bit of creativity and intention, you can turn your dining area into a restaurant vibe. Here, you’re not cutting out joy—you’re simply making sure you have room for what makes you happy without overspending or getting stressed with budget. And an image below is a sample illustration for your budget to work for you.
The key is balance. You can have fun, but it’s about making sure you're putting your money towards your priorities—whether that’s saving for a big trip, treating yourself once in a while, or just not worrying about money at the end of the month.
Note to Remember: "Budgeting doesn’t mean a life of austerity—it means being smart about where your money goes so you can keep enjoying life!"
Myth #5: Talking About Money Is Off Limit
Last (definitely not the least) money myths that kept me broke - discussing money is off-limits. The truth is having open discussions about money helps to break the cycle of financial stress and uncertainty. Well, a discussion like this is sensitive but you don’t need to talk about everything like the very detailed one.
Picture this! When you’re in the dark about managing your finances, it’s easy to feel like you’re the only one's struggling. But guess what? Almost everyone faces financial challenges at some point. It’s just on a different level or situation. By opening up, you realize you’re not alone. Probably, you can swap strategies on everything from budgeting to saving for retirement.
Another example for working individuals or employees like me. Take a moment to think about how discussing money could even benefit you in the workplace. Whether it's negotiating salaries, understanding benefits, or planning for financial goals, being informed and comfortable talking about money could put you in a stronger position. It’s not about being boastful or showing off wealth—it’s about being realistic and proactive with your finances.
Note to Remember: "The more we talk about money, the more normalized it becomes. So, instead of tiptoeing around the subject, let’s make it a part of everyday conversations. You’ll be surprised how much you can learn to feel confident in managing your finances."
How I Finally Broke Free: Changing the Money Mindset
Let’s be real—breaking free from bad money habits feels like trying to run a marathon in flip-flops. Well, it wasn’t a sudden windfall or some magical thing, it was my mindset.
Here's how I finally broke free from not-so-good money habits:
Owning My Story
First, I had to stop feeling bad about myself because of those money mistakes. Guilt and shame? These emotions aren’t great travel companions on the road to financial freedom. Instead, I took a long, hard look at my spending habits—no judgment, just curiosity.
Flipping the Script
I realized that money isn’t just something that “happens” to you. It’s a tool. And like any tool, it works better when you know how to use it. I started small—tracking my spending, setting a few realistic goals, and permitting myself to mess up along the way. Progress, not perfection, became my motivation.
Choosing Intentionally
I shifted from “I can’t afford this” to “How can I make this work?” That small change in language made a huge difference. It made me more creative and resourceful. Just like saving, it didn’t feel like deprivation—it felt empowering.
Rewriting Money Habits
Mindset is powerful, but habits make or break the journey. I asked myself: What am I repeatedly doing that’s keeping me stuck? For me, it was those small, mindless expenses that added up over time—like the subscription services I never used or the tempting sale items I justified because it will never be the same the next day. I started to align money with purposes and priorities.
Surrounding Myself with Positivity
Breaking free from old patterns also meant being mindful of who and what I let influence me. I unfollowed social media accounts that made me feel “less than” and started following people who talked about money in empowering and relatable ways. I even found myself sharing about handling finances with family and friends, which led to some incredible conversations and new support systems. The most incredible part, I started to write and blog about personal finance, the same as I’m doing right now.
Changing your money mindset isn’t about reaching a specific number in your bank account—it’s about creating a life that feels aligned with your values, goals, and dreams. For me, the journey was just as transformative as the destination.
Wrap-Up: Money Myths That Kept Me Broke
There you go - the five money myths and how I broke free from those myths. Indeed, breaking free was a game-changer for me. It took some unlearning, a lot of trial and error, and being honest with myself about my finances. If you’ve been buying into these money myths that kept me broke for a long time, know that it’s never too late to hit the reset button. Again, financial freedom isn’t about perfection—it’s about progress. Who knows? The myth you let go of today might just be the breakthrough you’ve been waiting for. Keep growing smarter and wealthier!
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