Common and harmful money fallacies

 Here are some of the most common and harmful money fallacies:

1. The Sunk Cost Fallacy:

   • What it is: The tendency to continue investing in something because of past investments, even if it's no longer beneficial.  
   • Why it's harmful: It can lead to poor decision-making and wasted resources.  

2. The Money Illusion:

   • What it is: The tendency to focus on nominal dollar amounts rather than real purchasing power.  
   • Why it's harmful: It can lead to poor financial decisions, such as not adjusting for inflation.  

3. The "More Money, More Problems" Fallacy:

   • What it is: The belief that more money leads to more problems.
   • Why it's harmful: It can discourage people from pursuing financial goals and limit their potential.

4. The "Get Rich Quick" Scheme:

   • What it is: The belief that there are easy ways to get rich quickly.  
   • Why it's harmful: It can lead to impulsive decisions and financial losses.  

5. The "Keeping Up with the Joneses" Fallacy:

   • What it is: The tendency to spend money to impress others.
   • Why it's harmful: It can lead to unnecessary debt and financial stress.  

6. The "I'll Start Tomorrow" Fallacy:

• What it is: The tendency to procrastinate on financial goals.
• Why it's harmful: It can delay progress and make it harder to achieve financial goals.

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By Jerry Ramonyai

80/20 Rule: Social Growth, Leadership, Management, Self Improvement, Success, Interpersonal Skills,TR6 Communication, Personality, Effectiveness, Intelligence, Mindfulness and Relationships.

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