Wealth coach debunks 'money myths'

Posted at 01/04/14 9:15 AM

MANILA, Philippines – There are a number of misconceptions about money that often stand in the way of Filipinos from being financially wealthy.

Wealth and life coach Chinkee Tan said one of the most common misconceptions is that “money is the root of evil.”

Tan said this notion can sometimes hinder people from aspiring to be rich.

“Most Filipinos have what we call a complex that once they become rich, they will become evil. So they try to make enough, so they won’t become evil,” he told ANC’s “On The Money.”

Tan said that money shouldn’t be described as the root of all evil because we all need it to pay for necessities such as food, clothing, education, and shelter.

“It’s not the money, it’s the love of money…the love of money is the root of all evil. The love of money over friendships, relationships, your name, and reputation, that is the root of all evil,” he said.

Another misconception is that “having a lot of money will make me rich.”

Tan cited several instances wherein people made millions but ended up squandering it in just a short period of time because they failed to save or invest properly.

Tan said having a big salary will equal a better life is another misconception. A better life should be dictated by the lifestyle you choose to have and not the money that you have.

“In reality, noong maliit pa ang sweldo it’s just enough. But when the income is larger, kulang na, nagkautang pa,” he said.

He also said that another common misconception is not being able to start a business “because I don’t have enough money.”

“Money can never create money,” Tan said.

“Even if you have all the money in the world but if you do not know what to do with it, your money is useless…even if you don’t have lots of money, but you have a great idea, that idea can help you churn a lot of money,” he added.

Tan also suggested that instead of having money resolutions to start the new year, you need to have long-term financial goals.

He shared the financial goal formula “CASH”:

  • Change your lifestyle
  • Always be open-minded to other opportunities
  • Save as much as you can
  • Have a long-term perspective

Fundamental truths about money

While there are misconceptions about money, Tan said there are also fundamental truths about money, such as “money is a tool.”

“If your money is making life easier, then you’re using it the right way. Even if you’re only earning P10,000 a month but it is improving your lifestyle, then you are using it the proper way,” he said.

Tan also said that money is a test of character. It can never change you, but it can reveal what type of person you are.

“Noong dati walang pera, they’re OK, noong dumami na ang pera yumabang na…that person has always been proud but he had nothing to boast about before,” he said.

Tan said another fact about money is that not only does it make your life easier, it also makes you a blessing to others if you know how to share.

“The reason you are blessed is that so you can be a blessing to others,” he said.