10 Money Lies You’ve Probably Told Yourself (And Why They’re So Risky)

The lies you tell yourself about money can shape your spending habits and influence how you perceive debt and signs of financial success. Unfortunately, as these misconceptions grow, we start to believe and share them with family and friends, causing harm beyond ourselves.

The good news is that you can break free from this destructive cycle by identifying these money lies and countering them with truths.

Here are eight of the most common money lies we tell ourselves (and others) and their corresponding truths.

It may feel like a win to score a nice pair of shoes at 40% off, but is it really? Spending money you hadn't planned to spend on a sale item can make you think you're being financially savvy. In reality, it's just spending.

Before making a purchase based on a perceived steep discount, ask yourself, "Would I buy this at full price?" If the answer is no — and quite often this is the case — it might not be a smart deal.

Ads often lead people to believe they use a product more frequently than they do. Behavioral economists call this "project bias," where we believe our future selves will have the same motivation as we do now, often resulting in regret.

Estimate how many times you'll use the product, divide its price by that number for the cost per use, and decide if it's worth it.

Emotional spending is a slippery slope that drags millions into debt. It creates an unhealthy cycle of overspending as a way to cope with stress, anxiety, and depression. Unfortunately, shopping based on feelings often results in impulse purchases, regret, and a lot of unused items.

To recover after a long week, recharge by meeting up with friends, giving yourself an extended self-care day at home, getting outside and away from your computer for the weekend.

"Money isn't everything" is a phrase people often tell themselves when they feel anxious about their finances. But it is some things – like security, stability, and the power to live the lifestyle you want.

The best way to fight this mindset is to learn how money works. Taking on personal finance principles can empower you to take control of your finances and make smarter money decisions in the future.

The phrase "I could afford it if I wanted to" often comes up when someone considers an item too expensive or beyond their budget. Although it's commonly used as a defense, it could signal a problematic tendency to make impulsive purchases fueled by shame.

Remember, you don't owe anyone an explanation for your financial choices, but it's important to be honest with yourself. Instead of using this phrase, try saying, "I choose not to make this purchase."

Unnecessary purchases are often mislabeled as "investments" to make us feel better about the expense. However, many of these items — such as handbags, collectibles, and overpriced courses — end up unused and forgotten.

Experts reveal that eight in 10 Americans buy items they'll likely never use, highlighting how these so-called "investments" could be overspending in disguise.

Investments typically provide some form of return — either financial or emotional. So, before making a purchase, decide whether the return truly adds value to your life.

It is true that many Americans struggle with debt. In fact, 90% of Americans are affected. And much of this is high-interest credit card or personal loan debt.

Rather than passively accepting debt as inevitable, actively work to reduce it by paying more than the minimum on your cards, paying off the highest interest debt first (the avalanche repayment method), or considering debt consolidation.

These strategies can help alleviate your financial burdens, enabling you to build a more stable financial future.

What begins as a low-risk move can quickly lead to added stress. While you might not feel the need to access your savings now, life can throw unexpected curveballs, such as medical emergencies, job changes, or urgent maintenance tasks, calling for these rainy day funds.

Instead of dipping into your savings, set up a fun fund. This designated fund allows you to treat yourself occasionally without undermining your safety net.

The lies you tell yourself about money can severely impact your financial future. What seems like a reasonable purchase now can, unfortunately, lead to a mountain of debt.

If you're having a difficult time making financial decisions to support your money goals, consider working with a wealth manager. They will help you create a working financial plan that includes investment strategies and setting up protections to minimize risks.