Everywhere you turn, people offer personal finance advice that is supposed to make your life better.

That’s nice if those tips are actually true.

Unfortunately, not all frugal living and personal finance tips are created equal. Here are 5 myths that will keep you poor.

Myth #1: Good Deals Save You Money

FOMO. Ever heard of it? It stands for: Fear of Missing Out.

Marketers love it.

They tell you this incredible deal is going away, and if you don’t act now, then you will miss out forever.

Or, at least until next time.

Is that deal really good?

Will it save you money?

Not really because you have to spend money in the first place.

We all love a good deal, but when you are presented with a discount, be sure to think your purchase through.

Is it something you need so badly you would purchase it without the discount?

Is it in the budget?

Will it bring joy to your life?

Does it solve a problem you have?

Not all discounts are the same, so think before you buy.

Myth #2: Don’t Use Credit Cards

I know, I know. Some debt-free gurus say never to use credit cards.

My standard answer has been: You can tell me what to do when you pay my bills.

Those gurus have a point:

When you carry balances on your credit cards, you rack up small interest charges each month that add up over the course of a year or two or four.

That’s not good.

Credit cards, especially rewards cards, have a place in your financial strategy.

They can be a wonderful tool when you are intentional and disciplined with your money because you earn a percentage back for every dollar you spend, usually around 1 to 2%.

The key to making credit cards work for you is to pair a great rewards card with a plan only to charge items that you can safely pay off when the statement arrives in your mailbox.

This means you save for major purchases before buying them.

When you have the money in the bank, make your purchases on a credit card to score some rewards, and pay the bill when you get it.

Used properly, credit cards can earn you hundreds of dollars a year in rewards, and this is sweet when you are going to buy the stuff anyway.

Myth #3: I Don’t Earn Enough To Save

I am guilty of once believing that I didn’t make enough money to save any.

That thinking led me to push financial freedom off into an undefined future where one day I would have enough.

What about you? Are you in the same boat?

If so, let me tell you that “one day” has arrived.

You do earn enough money to save if you know the right places to look.

Here are some strategies to free up some of your cash so you can save:

  1. Save on coffee: We’re not saying stop drinking coffee, but maybe make it at home a few times a week. Buy reusable filters for your K-cup coffeemaker to save money each time.

Myth #4: Savings Account Interest Is Too Little To Matter

How do the words “free money” sound to you?

In a sense, the interest a bank pays you when you deposit your money is “free money.” 

While the interest payments made to you will not break the bank, something is better than nothing, and it adds up.

When you have money, there are a few options you have: Spend, save, or invest.

Spending depletes your cash, and investing puts some of your cash at a small risk.

When you save and get paid interest, you grow your cash.

Not all banks offer the same interest rates, so look for a high-yield savings account to maximize your savings.

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