Five Financial Myths That Keep You Broke (And How to Break Free from Them)

Myth 1: “I’ll start saving when I earn more.”

This is one of the most dangerous beliefs. It’s easy to think that once your income increases, your financial habits will magically improve. But in reality, if you don’t learn to manage money when you have less, you’re unlikely to do it when you have more.

Why this is a trap:

Lifestyle inflation tends to rise with income. If you’re spending 100% of your paycheck now, you’ll probably continue that pattern when your salary grows—just with bigger purchases.

What to do instead:

Start small. Save just 5% of your income, even if that’s only R$50 a month. Building the habit is more important than the amount. Automate it, so you never “feel” the money leaving your account.

Myth 2: “Debt is normal. Everyone has it.”

Yes, many people live with debt, but that doesn’t make it healthy. Debt can trap you in a cycle where your income is always going to pay for your past, not your future.

Why this is a trap:

Interest charges on credit cards, personal loans, and financing can quietly drain thousands over time. Debt reduces your freedom to make new choices and limits your financial growth.

What to do instead:

Create a debt repayment plan. Use either the snowball method (paying off the smallest debt first for motivation) or the avalanche method (tackling the highest-interest debt first). Combine that with reducing expenses and using extra income from side hustles to accelerate your payoff.

Myth 3: “Investing is too risky for me.”

This belief keeps countless people from building wealth. While some investments carry risk, not investing at all often carries an even bigger one—the risk of not keeping up with inflation or missing out on long-term growth.

Why this is a trap:

By avoiding investing, you’re leaving your money in savings accounts that rarely beat inflation. Over time, your purchasing power declines, and you miss out on compound interest—the most powerful force in finance.

What to do instead:

Start with low-risk, beginner-friendly options like Treasury bonds, index funds, or ETFs. Many platforms allow you to invest with as little as R$30. Learn the basics, start small, and grow your comfort level over time.

Myth 4: “Budgeting is restrictive and kills my freedom.”

Many people avoid budgeting because they associate it with deprivation. But the opposite is true—budgeting is about giving your money direction so it works for you.

Why this is a trap:

Without a budget, money slips through the cracks. You end up reacting to financial problems instead of preventing them.

What to do instead:

Try flexible budgeting methods like the 50/30/20 rule, where you still allow spending on wants while prioritizing needs and savings. Budgeting isn’t about cutting fun out of your life—it’s about making sure fun doesn’t cost you your financial peace.

Myth 5: “I’m just not good with money.”

This belief can become a self-fulfilling prophecy. Many people were never taught how to handle money, and instead of learning, they assume they’re naturally “bad at it.”

Why this is a trap:

Money management is a skill, not a talent. Believing you’re bad at money can keep you from taking small steps that could transform your situation.

What to do instead:

Start with small wins: track your spending for one week, open a savings account, or read a personal finance book. The more you learn and apply, the more confident you’ll become. Progress builds belief.

Final Thoughts: Challenge the Narrative

Financial myths feel safe because they’re familiar—but that familiarity often comes at a high cost. If any of these beliefs are quietly shaping your habits, now is the time to replace them with new truths:

• You can save even if you earn little.

• Debt doesn’t have to be a life sentence.

• Investing is for everyone.

• Budgeting gives you power.

• Money is a skill you can learn.

Your financial life isn’t just shaped by what you earn, but by what you believe. Challenge your old story, write a new one, and give your future a foundation it can grow on.