The 5 Scariest Money Myths (A Halloween Special for Your Finances)
If you listen closely this Halloween week, you might hear them...
Not ghouls. Not ghosts. But something even scarier: bad money advice.
They creep in from TikTok, gurus, and even "financial experts" like Dave Ramsey. And if you're not careful, these myths will haunt your money decisions for years to come.
Let's bust the 5 scariest ones—before they sneak into your budget.
1. "All Debt is Bad"
(Featuring: Dave Ramsey's "Credit is evil" mantra)
This myth lurks in every corner of personal finance. Ramsey famously says you don’t need credit at all and should avoid it like a vampire avoids sunlight.
He even says things like:
"If you're working on paying off debt, the only time you should see the inside of a restaurant is if you're working there."
He insists that credit cards and meals out are basically luxuries you shouldn't touch if you’ve got debt.
But here’s the truth: Credit, used wisely, is a tool. Building a strong credit score can open doors to better interest rates, mortgages, business funding, and financial flexibility. Avoiding credit completely? That can trap you just as badly as misusing it.
And while the advice to fear credit cards is loud, it stays oddly silent on something equally dangerous: Buy Now, Pay Later plans. BNPL services like Klarna and Affirm let you split your payments into smaller chunks—which sounds harmless, until that $20 burrito turns into $70 thanks to fees, automatic charges, or overdrafts you didn’t see coming.
In fact, studies show BNPL users are more likely to be financially vulnerable, with more loan delinquencies and lower savings. So when someone says "all debt is bad" or "avoid credit at all costs," what they’re really missing is: which debt matters, how to use credit intentionally, and what new traps are out there.
2. "You Need to Have a Lot of Money to Invest"
This myth whispers, "Wait until you're rich, then start investing."
But the truth? Compounding interest is all about time, contribution and the rate of return, so small, consistent investments—even $20 a week—can grow into something powerful.
Last week I shared how one of my Financial Freedom for Creatives Club members shared that she’s earned $25,500 in her investment portfolio since January!
She started with hardly any amount, and she’s in her 70s! She thought it might be too late. But she did it anyway—step by step. And when the market dipped, she kept her emotions into check and booked a call with me.
So, it’s never too late. It’s also never too early. And waiting until you have more money or you’re “ready,” often means missing the gains you could be receiving.
3. "Buying a Home is Always Better than Renting"
This one sounds responsible. Grown-up. Safe. It also feels like it’s the “American dream,” or should be anyone’s dream.
But actually… Owning isn’t always the smarter choice.
Renting can mean more flexibility, lower risk, and less hidden cost (like having to fix what’s not working instead of just having the owner do it and maybe even a surprise roof replacement).
It also sometimes offers emotional and psychological freedom. No anxiety about sudden repairs or maintenance. No panic over housing market swings. Just clarity in what you owe and when you owe it.
And there are tax implications too: to avoid capital gains taxes when selling a home, you need to have lived in it as your primary residence for at least two of the last five years. That means if you’re not sure you’ll stay put for more than two years, buying could actually cost you more in the long run.
It depends on your goals and the right timing for you—not some one-size-fits-all rule or someone else’s “dream.”
4. "We Buy Things We Don't Need with Money We Don't Have to Impress People We Don't Like"
(Ah yes, the judgmental ghost of Dave Ramsey again)
Sure, some spending is driven by ego. But this myth flattens the full picture. Not all financial decisions are about impressing people. Sometimes it's about joy. Comfort. Culture. Survival.
And let’s be real: that quote was made for people with privilege—people who can afford to “keep up with the Joneses.” It does not speak to folks living paycheck to paycheck, doing what they can to cover rent, groceries, childcare, and medical bills.
Survival spending isn't a moral failure. It’s just reality for a lot of people. And it deserves a lot more compassion than this myth gives.
Spending isn’t always emotional weakness. Sometimes it’s being human.
5. "Act Your Wage"
Here’s another scary saying by none other than Dave Ramsey. Of course, the intention of spending within your means isn’t inherently wrong.
But the myth? That your income defines your financial destiny.
Truth is, your wage is just a snapshot. People grow, pivot, evolve. Smart risk-taking, creative income streams, or even temporary help can change the game.
Act your vision – not just your wage.
Final Thought:
This Halloween, don’t let these myths scare you into living the smaller life. You’re allowed to think critically, challenge the experts, and carve your own (pumpkin-spiced) path.
Because your financial truth? It's more powerful than any myth out there.
✨ Happy (Myth-Busting) Halloween!
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