Episode 885 Ten Money Myths
[00:00:00] Scott Maderer: [00:00:00] Thanks for joining me on episode 885 of the inspired stewardship podcast.
[00:00:07] Annie Purdue Olsen: [00:00:07] I'm Annie Purdue Olson from leading better together. I encourage you to find the courage to lead in ministry well, and one way to be inspired to do that is by listening to this, the inspired stewardship podcast with my friend, Scott Maderer.
[00:00:23]Scott Maderer: [00:00:23] it is all of these myths. Again, like the time MIS come down to intentionality, they come down to recognizing that you don't have a plan. And if you don't have a plan, then you need one. That is the way to get success with your money. That's why coaching is so powerful is because it helps you sit down and intentionally develop and stick.
[00:00:49] Welcome. And thank you for joining us on the inspired stewardship podcasts. If you truly desire to become the person who God wants you to be, then you must learn to [00:01:00] use your time, your talent and your treasures for your true calling in the inspired stewardship podcast, who will learn to invest in yourself.
[00:01:08] Invest in others and develop your influence so that you can impact the world.
[00:01:16]Yeah. Episode about investing in others through stewarding your treasures. I talk with you about 10 money MIS I share why knowing if you believe money misses important. And I also share some tips on what you can do to overcome them as we talk about stewarding your treasures. Wouldn't it be great. If you could support this podcast and do it without costing yourself an extra dime.
[00:01:40] It turns out you can. All you have to do is use inspired stewardship.com/amazon. When you're ready to make a purchase via Amazon and a small commission, we'll come back to support the show. If you enjoy the show, when you're ready to buy from Amazon, just use inspired [00:02:00] stewardship.com/amazon. Just like the other day, I talked about some of the top myths around time today.
[00:02:06] I wanted to talk about some of the top myths around money. The first one is that buying a home is always better than renting. The second is that you have to be rich and have money to be able to begin investing. The third is, carrying a credit card balance. Isn't bad. In fact, it actually helps your credit score.
[00:02:29] The fourth, I don't earn enough money to save or to have an emergency fund or to invest the fifth. One of the best ways to invest and save against inflation is to invest in commodities like gold. Number six, my partner manages my money, so I don't need to worry about it. Or similarly, I've got someone that takes care of my money, so I don't need to worry about it.
[00:02:53] Number seven, cash is always king or credit is always the best way to go. [00:03:00] Number eight, there's a perfect amount for your emergency fund and you need to stick that aside and put it in a savings account so that you can be okay. Number nine, two incomes are always better than one income. We need to have two working incomes.
[00:03:16] Number 10. I don't need an emergency fund because I have credit cards and credit and can use that in an emergency. So looking at these a little closer, let's talk about some of these myths and what they mean and why they're important to understand the first one that buying a home is always better than renting.
[00:03:37]The thought process here is that renting is throwing your money away. Renting is just. Putting money into something that you can't build equity in, and that's always bad. But in fact, if you're going to move frequently, or if you're first starting out, it's often better to rent for a while and use that to buy time.
[00:03:56] It's buying patients. Number two, that you have to be rich to [00:04:00] invest. The truth is then a lot of people. Think that only the rich get richer by investing, but you can start even with very small amounts of money and begin to set up an investment account, even very young. And the earlier you start, the better it is.
[00:04:19] Number three, you should carry a credit card balance because that helps your credit score. And there's no harm in it. The truth is a credit card balances. Almost always. Harmful, and yes, you may want a credit score. You may want to use it for credit, even though I don't necessarily buy into that in every case.
[00:04:37] But if you're choosing to do that's not actually the best way to build your credit instead of paying off your balance each and every month is the best way. The fourth that I don't earn enough to save is very similar to not. Earning enough to invest. The problem is that most people don't save or give because they try to do that with the money that's left over.
[00:04:59] Instead of sitting [00:05:00] down and intentionally doing that first investing in things like gold or commodities, aren't really a good way of building wealth because those commodities go up and down. They're very volatile. They behave in a way that is hard to predict. And so it's not usually a good investment instead.
[00:05:19] It's like gambling. Somebody else manages my money and I don't have to worry about it. The truth is I don't care who it is. If somebody else has managing your money, two brains are better than one and you need to work with them and communicate regularly. Whether that's your spouse or someone else, number seven, cash is king or credit is king.
[00:05:40] The truth is I personally don't use credit cards, but. There are people that use them well and use them responsibly. The same thing is true for cash. Oftentimes you can get a discount for cash, but there are some benefits to actually using something like a debit or credit card to pay for things as well.
[00:05:59] So the truth is [00:06:00] it's not about one being better than the other. It's about your intentionality and whether or not you're using them. Or are they using you? I've seen people get into trouble using cash, and I've seen people get into trouble using credit. So instead it's about knowing yourself and knowing your own behavior.
[00:06:19] Number eight, the emergency fund. The truth is that you do need an emergency fund. You may want to keep it in a mixture of different kinds of accounts. You may want to put it in something that earns a little bit of interest, but you need to be able to get to the money right away if you need it. So you don't want to tie it up in long-term investments, either.
[00:06:39] The idea is making sure that you're saving a little bit of money and you're using that to pay for things like an insurance policy. Two incomes are better than one. That's not always true. For instance, if it costs you in terms of childcare and other things, more than you earn, having a second income can [00:07:00] actually cost you money.
[00:07:02] And then the last one, I don't need an emergency fund because I can rely on things like credit cards. The truth is that's the worst time. To be using things like credit cards is when you're in the middle of an
[00:07:13] emergency,
[00:07:14] Scott Maderer: [00:07:14] because you're usually making the situation worse, not better in terms of the money that you owe.
[00:07:19] And so having some money set aside for emergencies is valuable. You the truth is all of these myths. Again, like the time has come down to intentionality. They come down to recognize it, that you don't have a plan. And if you don't have a plan, then you need one. That is the way to get success with your money.
[00:07:42] That's why coaching is so powerful is because it helps you sit down and intentionally develop and stick to a plan. So you can succeed with your money. Thanks for listening.
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