About this video:
Mr. V examines Personal Finance myths that hinder sound financial decision.
Beware of these financial myths:

1. Money and happiness aren’t correlated

Actually, a study done at Princeton University showed there is a correlation between income and happiness, to a point. Happiness and emotional well-being improve with an increase in salary, up to $75,000. Beyond that, however, further increases did not provide additional improvements in attitude.

2. You can never become rich

It’s not a coincidence that a disproportionate number of extremely successful people come from poor backgrounds. It’s staggering how many highly successful people never finished high school. Average people tend to get average results.

3. Only one formula for calculating a credit score

This simply isn’t true. The most respected and widely used credit score is the FICO credit score. However, the credit bureaus have their own formulas, and many financial institutions use their own scoring system. All scoring systems result in similar scores about 80{aa1969326c1a91f778c6fa1a2b2ffd3b2b8d2983922ea3ce9690758a6e788246} of the time, but there can be significant differences.

4. There will be enough time later

Many of us put off saving for retirement or our children’s education until a later time. We’re under the impression that things will be easier later. They might be easier and they might not. But will there be enough time for your savings plan to be successful?

5. More education means more money

In most cases, a higher degree does mean a higher income. Those with a college degree earn approximately a million dollars more over a lifetime than those with a high school education. Those with doctorate degrees average another million on top of that. However, in many fields, those with a degree do not earn more. Postal workers and electricians, for example, do not earn more money with a degree. In some fields, those with graduate degrees actually earn less. Editing is an example of one of those fields.

6. You need to make a certain salary before saving is possible

Start today. Did you know that the famous TV personality Jim Cramer saved 15{aa1969326c1a91f778c6fa1a2b2ffd3b2b8d2983922ea3ce9690758a6e788246} of his income when he was so poor that he lived in a car? How much is he worth today? He is worth nearly $100 million.