I’m not one to judge but every so often I’ll hear a comment about money that just makes me shake my head. I’m not even talking about people being misinformed; some of these statements I’ve heard are straight out crazy.
“I want a risk free investment that returns 7%+”
I get it, interest rates are low and you want a higher return on your savings, but I’m sorry no such investment exists. If you want a better return then you’ll have to take some risks, that’s just how investing works.
If you ever come across a person promising you a risk free investment with high returns, run, run as far away as you can. The odds are this person is lying or pulling off a Ponzi scheme.
“I don’t want to pick up more shifts because I’ll make less money”
The person who said this was working 3 days a week at the time, and he refused to apply for full time. He falsely believed that working the extra hours would put him in a higher tax bracket. With this logic he believed that going full time would decrease his income so it made more sense for him to stick to part time hours.
Even after it was explained to him that we’re taxed on a marginal basis in Canada, and it was impossible to work more hours and make less money, he didn’t believe it. I suspect it was simply a lie he told himself to make himself feel better about not wanting to work full-time.
“I don’t make enough money to pay my rent”
Said by someone who makes $30K and renting a $1,900 a month condo. Seriously what are you doing spending that much on rent? Your salary isn’t the problem; your spending is the issue here.
Rent a cheaper place and that’ll solve your problem. Too many people feel entitled these days and aren’t willing to save or cut expenses. If you really can’t afford something, take a look at your budget and make some adjustments.
“I don’t want to join the pension plan because I’m not sure how long I’ll be with the company”
Pensions are becoming increasingly rare so whenever I hear someone make this statement it makes me cringe. What difference does it make if you’re not sure how long you’re going to be with the company? They’re offering you free money and you should take it. Sure some pensions require a vesting period, but even if you do leave early, at the minimum you’ll get your contribution back.
I find that the people who make these kinds of statements are usually not interested in taking control of their finances. Don’t be a money moron. Take the time to educate yourself and make your money work for you.