Most people believe they don’t earn enough to save or invest. It’s a common excuse — “Once I start earning more, then I’ll think about savings.” But the reality is different.
If you earn ₹6 lakh per year (₹50,000 per month), you are already richer than 80% of India’s population.
The problem is not always how much you earn — it’s about how you manage your hard-earned money.
Even with an average income, consistent savings, smart investments, and avoiding common money traps can build real wealth over time. But most people fall into subtle financial lies that quietly drain their money.
If you feel like you’re working hard but never moving ahead financially, you might be falling for these 5 financial lies:
1. I’ll Start Saving When I Earn More
This is perhaps the most dangerous lie. The belief that savings is an event for the future, not a habit for today.
Reality Check:
Income and expenses always grow together if you’re not mindful.
If you can’t save ₹1,000 from ₹10,000, you won’t magically save ₹10,000 from ₹1,00,000.
Wealth building is about discipline, not income.
Solution: Start small — even ₹500/month. Build the habit first, the amount will grow later.
2. EMIs Are Better Than Saving — I Can Enjoy Now & Pay Later
Easy EMIs feel like a clever way to afford expensive items today. But this mindset locks your future income into liabilities.
Reality Check:
EMIs reduce your future cash flow and limit your ability to invest.
You pay interest, losing money that could’ve compounded.
Upgrading lifestyle through loans is a wealth-destroying habit.
Solution: Follow the rule — If you can’t buy it twice in cash, you can’t afford it yet.
3. I’m Too Young to Worry About Retirement or Insurance
Youth feels like an endless runway. But in finance, the earlier you start, the easier your journey becomes.
Reality Check:
Starting investments early reduces the amount you need to invest (thanks to compounding).
Insurance (Term & Health) is cheapest when you’re young and healthy.
Life is uncertain — financial planning isn’t just for old age.
Solution: Start a SIP, get a term plan, and secure health insurance before it’s “needed.”
4. Credit Cards Are Free Money — I’ll Pay It Off Later
Swiping a card feels painless. But carrying over balances or using cards for non-essential purchases can snowball into a debt trap.
Reality Check:
Credit card interest rates are as high as 36-42% per annum.
Minimum payments only keep you in a debt cycle.
Over-spending habits are easier to form with cards than cash.
Solution: Use credit cards for benefits (like rewards/cashback), but pay full dues every month. Treat it like a debit card with benefits.
5. Insurance Is an Investment — I’ll Get My Money Back
Mixing insurance and investments is a classic blunder. Endowment plans, ULIPs, or money-back policies are often sold as “guaranteed returns with life cover.”
Reality Check:
These products offer poor returns (4-6% p.a.) with inadequate insurance coverage.
You pay more for less cover and lose on investment returns.
Insurance should be for protection, not returns.
Solution: Buy a pure term plan for life cover. Invest separately in mutual funds or other high-return instruments.
Final Thoughts:
The first step to financial freedom isn’t earning more — it’s unlearning the lies you’ve been telling yourself.
Wealth isn’t built by accident. It’s built through awareness, discipline, and honest conversations with yourself about money.
Key Takeaway:
Stop waiting for the “right time” or the “perfect salary” to start. The sooner you break free from these financial lies, the sooner you’ll build a future you control.
Disclaimer: Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. The information provided in this article is for educational purposes only and should not be considered as financial advice. Omega Financial is a mutual fund distributor and not a SEBI-registered investment advisor. Investors are advised to consult their financial advisor before making any investment decisions.
