Ever notice how personal finance myths spread faster than videos of the Ibiza Final Boss?

It’s like a modern mythology for your wallet, full of wild tales, strange creatures (not dislike the Ibiza Final Boss), and just enough truth to keep everyone confused.

I remember watching movies like Hercules as a kid and thinking it was kind of weird that Zeus casually hurled lightning bolts at anyone who kind of rubbed him the wrong way.

But here's the twist: money myths can actually zap your finances if you believe them.

Let's slay ten of the most bogus beliefs still haunting American investors and your group chat.

The Myth: If a fund did great last year, it’ll be great forever.

The Reality: History sets the stage, but it doesn’t write the ending. Less than 10% of top performing investment funds remain top performers over five consecutive years.

Diversify, check your risk tolerance, and never stop learning.

The Myth: “Splurge, you earned it!”

The Reality: Overpaying your taxes means you gave Uncle Sam an interest-free loan. Use your refund to build your future - future you will thank you!!

The Myth: Use them only for emergencies and hide them from your kids.

The Reality: Responsible credit card use builds your credit and earns rewards. US cardholders earned $41.1 billion in rewards in 2022!!

Just be sure to pay your bill in full, or you'll face some real debt monsters.

The Myth: “Buy low, sell high, repeat!”

The Reality: Even the Greek gods couldn’t predict next week’s S&P 500 moves. Missing the 10 best days in the market over 20 years can reduce your overall return by more than 50%. Do you want to take THAT risk?

Most successful investors ignore the drama and stick to their long-term plans.

The Myth: “Stocks are off limits until you’re loaded.”

The Reality: You don’t need a fortune, just time, patience, and a low-fee index fund. The easiest way to start? Just buy the WHOLE stock market: Vanguard Total World Stock ETF.

The Myth: A budget means eating ramen (I love ramen), staring at spreadsheets, and canceling your social life.

The Reality: A good budget reflects your values, not a list of boring rules. Prioritize what actually matters to you for sustainable financial success. Use easy budgeting tools like YNAB.

The Myth: “Putting money in stocks has the same odds as rolling dice in Vegas. You’re just speculating and hoping for a lucky break.”

The Reality: Investing is built on discipline, research, diversification, and time. Well-chosen investments historically grow over the years, while smart strategies help manage risk.

The Myth: “Set it and forget it!”

The Reality: Most savings rates are weaker than my will power walking by a Cinnabon. If inflation outpaces your interest rate, your "wealth" is quietly shrinking. Investing isn't just an option; it's a necessity.

The Myth: “Renting is just throwing money away!”

The Reality: Sometimes renting means freedom, savings, and less stress. Homeownership isn't a golden fleece; it's a major commitment. Check out our previous newsletter here for more info: Buy or Rent?

The Myth: Only "big money moves" matter.

The Reality: That’s the beauty of…COMPOUND INTEREST(s). The eighth wonder of the world. Even $10 a month can grow into a future you'll want to brag about.

Glad we cleared that up.

Which of these myths did you believe?

Hit reply and let me know. Or, share this myth-slaying list with your smartest (and most gullible) friend.

DO IT NOW!