Money lies are difficult to overcome. They are often passed around as wisdom but they are often untested folklore. Money lies can be Bible verses taken out of context and misused by a preacher. Ministers do their best to teach financial subjects. Regrettably, preachers fall into the liberal idea of money and unknowingly spread financial folklore.
In this article, I will address ten money lies. These are in no particular order. There are more than ten of them. We will start with ten money lies today.
#1 — Money Can’t Buy Happiness
Money does not buy happiness is a politically correct statement. Many Christians will also fall into that answer as well. No one wants to be perceived as shallow or greedy.
Money makes life easier. It also can create a certain amount of happiness.
We often set up two extreme options when discussing money and happiness.
“Having a kajillion dollars won’t matter if you get cancer!”
Okay.
Financial stress abounds in households where being evicted is a real option. Asking a cashier to take some items back because the money is inadequate is embarrassing. Hearing a tow truck outside and wondering if your car is being repossessed is an odd feeling.
Having our basic needs met brings peace. The ability to take your family on even a modest vacation brings satisfaction. Writing a large check to your favorite charity is a source of joy.
Money is not evil and it can be a source of happiness. Stop allowing the fakes and phonies to pressure you into being a borderline socialist.
Here’s a link to an article claiming that money can indeed buy happiness.
#2 — Investing Is Just Like Gambling
I recall a preacher once saying, “The stock market is going down! I am glad that all my money is invested in heaven!”
He was super proud of himself and humble all at the same time.
Unfortunately, this same person is working well beyond his productive years. He should have retired about five years ago because he is financially unable. He refused to invest in his own future and believed that “faith” was sufficient to pay the bills.
The stock market has historically produced returns of around 10%, on average. Sometimes the returns are negative and other times they are greater than 20%. It’s not crazy to use 10% as a rule of thumb.
Gambling in Las Vegas rarely generates a positive return. Many people buy lottery tickets and never win big.
There is adequate historical data confirming investing is not gambling. Those who say it’s gambling are simply ignorant.
#3 — The Rich Get Rich and the Poor Stay Poor
This phrase is an easy giveaway for a person with a victim mindset. The rich are not getting rich on the backs of the poor. The poor are actually getting richer too.
The average American is not poor. They might be broke but they are not poor. The average American has shelter, clothing, food, an iPhone, a 50″ television, running water, and room air conditioning.
We all have financial tradeoffs. A new iPhone might cost $50 per month. That same amount could be used for something that generates wealth. The choice belongs to each of us.
A sure way to remain broke is to blame a rich person for our bad choices.
Complain and remain.
#4 — Money Is The Root of All Evil
There are many challenging issues with money. Money is one of the biggest causes of divorce. Jails and prisons are overflowing with felons who committed larceny or murdered because of money.
Money, however, is not the root of all evil. Don’t love money. It’s not rocket science. If you have a tendency toward loving it ask God to help you.
One way to crucify the love of money is to practice radical generosity.
Just a suggestion.
#5 — All Debt Should Be Paid Before Investing
Debt cripples many families. Many families will never get out of debt. Being out of debt does not necessarily guarantee wealth creation.
Imagine that you’re hired to work for a new company. You are reviewing the benefits package and deciding what is important for you. The company offers a 401(k) to all employees. Plus, they match 100% of your contributions for the first three percent.
They also offer health insurance, dental, and optical plans.
A famous financial talking head would have you buy the health, dental, and optical but forbids the investment option. This is utter madness.
As soon as you get hired you should begin investing. You don’t need to start at 15% of your gross pay. You can start at 1% or 3%.
I recommend contributing enough to get the full company match.
Don’t wait until you get out of debt because you might not EVER get out of debt.
#6 — Jesus Endorsed The Paying Of Taxes
One of the coolest Bible texts is the one where Jesus is asked about paying taxes. His answer was smoother than silk. The full understanding of the text still baffles many believers.
I’ve heard preachers take that text (Mark 12:13-17) and say it affirms tithing. Others have indicated that paying taxes is honorable.
I believe that both are wrong.
Taxes are a necessary evil. Governments, for the most part, are corrupt. In the US our tax dollars are paid to do all types of evil atrocities.
Give the federal and state governments as little as you are legally required. Find legal ways to reduce your tax liability. Minimize your annual tax return so that you can keep as much of your money as possible.
Here’s a great article about this Bible text from the Mises Institute.
#7 — Sacrificial Giving Is Normal
Giving as a sacrifice is part of being a Christian. The church in Macedonia modeled this behavior perfectly (2 Corinthians 8:1-3). Perhaps you or your church have given sacrificially to a community that experienced a flood or a tornado. These events are unpredictable just like the famine in Jerusalem.
Churches and ministries should rarely receive sacrificial offerings. If a minister is constantly asking for money “above and beyond” then I would suggest there is something fishy going on.
Often the text from Luke 20:46-47 and Luke 21:1-4 is used as proof text for sacrificial giving.
I disagree.
It’s my opinion that Jesus is actually issuing a warning. The widow is not being commended. Jesus is simply stating facts.
The widow remained poor although she was the most generous that day.
#8 — I Have Plenty of Time To Start My Financial Journey
Time is ticking away. Father Time is undefeated. You do not have plenty of time to start your financial journey.
Time is your biggest ally or your fiercest foe. The longer you wait to invest the more you must invest. Starting earlier will have less of a strain on your lifestyle.
Ignore the yahoos that state you can’t drink lattes, drive nice cars or go on exotic vacations. You can do all of them and invest.
Those who begin investing in their late teens or early twenties could automate an IRA at $500 per month. They could virtually blow all of the rest, and still retire in style. Even when you’re super rich you could stick with the $500 per month and spend the rest on lattes, avocado toast, and vacations.
Let’s see how much waiting to invest costs per year. In our simple scenario, we want to retire with $2,500,000 in an investment account. We begin contributing at age twenty-three and want to stop working at age sixty-five.
#9 — Budgets Are For Nerds
Every business worth its salt generates several different types of budgets annually. There are spending budgets, revenue budgets, salary planning budgets, and investing budgets.
One of the best ways to win at wealth is to act as though your personal finances are a business. Plan your spending and cash flow each month.
Budgets aren’t the boss — you are the boss. If you want lattes and avocado toast make it part of your spending plan. If you get to the end of each month and have zero ideas of where all your money went then you are in desperate need of a budget.
Budgets are telling your money where to go instead of asking where it went.
John Maxwell
#10 — Charity Begins At 10%
I love to give charitably. It generates joy in my life. However, we cannot give what we do not have.
The idea that giving in the church begins at ten percent is wrong. It’s unbiblical and came out of folklore and not proper Bible exegesis.
Paul encouraged the church in Corinth to give in accordance with their income (I Corinthians 16:2, NIV). He also encouraged us to give as we purposed in our hearts (2 Corinthians 9:7).
There is nothing inherently wrong with giving ten percent. That’s a lofty goal for many families. It could also be an easy way out for others.
We should seek the wisdom of God in our giving. There will be times when we’re giving sacrificially and times when we’re hunkering down.
There is a grace in giving.