Let’s Be Frank: You Need to Stop Believing These 7 Money Myths

Posted December 17, 2024 in Advice

We all grow up hearing the exact same traditional financial advice: spend less, save more, and invest early. While most of those words of wisdom ring entirely true, there are a handful of widespread money management “tips” floating around that are completely false.

Here is the frank truth behind 7 common money myths that might be causing your household far more financial stress than benefit:

Myth #1: Debit is always better than credit

Do you automatically reach for your plastic debit card for every single daily transaction? While paying for expenses with money you already have in your checking line is a great foundational habit, there is an absolute time and place for strategic credit card usage.

The Real Deal: Credit cards get a bad rap because they can easily lead to a debt trap if mismanaged. However, using them responsibly is highly beneficial. First, credit cards offer excellent rewards like travel miles or cash-back systems. Second, your credit score doesn’t build itself on a blank canvas—using a card and paying the statement balance in full every month is the single best way to prove your reliability to lenders. Finally, credit cards offer robust purchase protection.
My real-world lesson: Just within the last month, I tried ordering some new barstools for my kitchen. My card was charged, but the stools never arrived, and the seller completely vanished. Because I used a credit card, the provider immediately credited my account and launched a fraud investigation. If I had used a debit card, that cash would have been drained directly out of my checking account while I fought to get it back!
Ready to maximize your score safely? Read our guide: Step 9: Build and Maintain an Excellent Credit Score

Myth #2: You must buy a home at all costs

We are taught that the ultimate American Dream follows a rigid checklist: land the job, get married, and immediately buy a house with a white picket fence. Unfortunately, many families rush into a mortgage without realizing that homeownership might not match their current financial season.

The Real Deal: For individuals navigating a fast-paced career, anticipating a relocation across state lines, or living in a hyper-inflated real estate market, renting an apartment or home is often the smarter, more flexible option.
Take my sister-in-law, for example. She has lived in Dallas for years and has rented the entire time. She is single, loves her independence, and works two demanding jobs that keep her out of her apartment most of the week. Buying a house where she would be solely responsible for unexpected roof leaks, A/C failures, and constant yard maintenance simply doesn’t make sense for her lifestyle right now. What is right for my household isn’t automatically right for yours—and that is completely okay!

Myth #3: Investing is strictly for wealthy elites

Many people assume the stock market is a closed club reserved exclusively for people who drive luxury vehicles and own vacation homes in three different states.

The Real Deal: Anyone with a small pile of money squirreled away—or “rat-holed,” as my dad would say—can secure a solid foothold in the market. A smart, consistent investment strategy is the single best engine to protect your wealth from inflation. If you are a beginner, you don’t need to analyze individual stock charts; you can leverage low-cost, passively managed index funds or ETFs to let your money compound quietly. (Decode the market basics in our guide: Step 11: Investing!)

Myth #4: “My partner handles the bills, so I don’t need to think about money”

It can feel tempting to live in blissful financial oblivion, hand over the reigns, and trust that your significant other has everything perfectly under control.

The Real Deal: Every single adult needs a firm, clear handle on their household cash flow, regardless of who inputs the actual numbers. While it’s perfectly fine for one partner to take the lead on daily accounting, both people must remain completely aware of the big picture. You both need to know exactly how your bills are paid, where your reserves live, and the exact digital login credentials for your accounts.
In my house, I handle the daily bill-paying routine, but Juston and I sit down and talk often about where our balances stand and how our goals are tracking. Losing a partner is a tragic enough reality without adding the immense stress of trying to crack passwords and untangle accounts while grieving. Protect each other by building complete transparency. (Start the conversation with our framework: Step 4: Have the Money Talk with Your Partner!)

Myth #5: Credit cards are a perfectly fine emergency fund

“Why would I waste cash sitting in a low-yield savings account when I can just use a high-limit credit card if a crisis hits?”

The Real Deal: Depending on plastic to bail you out of a real emergency—like a sudden job loss, medical illness, or family transition—is a fast track to a devastating debt spiral. Because of high commercial interest rates, you will end up paying back double what you originally borrowed.
This hits incredibly close to home for us. For years, Juston and I only had credit cards to lean on when the unexpected happened. But recently, for the first time in our 21 years of marriage, we finally established a true, fully funded emergency reserve. You cannot imagine the profound sense of relief and security it gives us to look into our ATFCU savings account and see that cushion. Juston is a UPS driver—he is in and out of his truck all day, every single day in the Texas heat. He doesn’t have built-in sick leave like I do, and he brings home nearly double my salary. If he gets injured on the job, our household cash flow shifts instantly. Having that savings shield means we know our family will be completely okay if life throws a curveball. Build your wall first! (Learn how to run the math in our guide: Step 7: How to Pay Yourself First!)

Myth #6: I’m too young to worry about retirement

When you are just launching a career, retirement feels so far down the road that it seems irrelevant. Plus, it feels impossible to save when you are bogged down by immediate costs like buying a car or saving for a down payment.

The Real Deal: Time is the ultimate financial superpower. The younger you start, the less out-of-pocket cash you actually have to contribute each month because compound interest does the heavy lifting for you.
I have seen firsthand what it looks like to arrive at retirement age with zero runway. My mom turns 65 later this month and does not have a formal retirement account. My stepdad had a great 401(k) years ago, but when he was out of work for over a year, they had to completely drain it just to survive. Shortly after, he was diagnosed with cancer, and they were never able to rebuild that safety net.
The moment Juston and I were eligible for retirement accounts at our jobs, we signed up immediately. We want to retire at a decent age and travel the world—experiences we had to put off because we married young and started our family early. Every time I received an annual raise at the credit union, I would immediately up my 401(k) contribution by 1% or 2%. Because I tied it directly to my raise, I never even felt the difference in my take-home pay. You can absolutely do the same! (Review the current IRS limits in our guide: Step 10: Plan for Retirement!)

Myth #7: I make plenty of money, so I don’t need a budget

There is a common misconception that budgeting is a restrictive punishment reserved only for people who are barely squeaking by at the end of the month.

The Real Deal: Budgeting is an elite tool for wealth preservation, and it is for everyone. Without a clear framework, families pulling in multiple six-figure salaries can easily spend their way into catastrophic debt.
We see high-profile celebrities and professional athletes make tens of millions of dollars a year and still end up filing for bankruptcy. How does that happen? Because no matter how massive your income stream is, it is never infinite. If you spend mindfully without a blueprint, you will eventually reach the bottom of the cash flow. Don’t look at a budget as a dirty word—look at it as your personal key to financial freedom. (Build your framework today with our guide: Step 2: Creating a Budget!)