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Once you become responsible for your finances, you learn a lot about money. You learn about how to earn it and how quickly you can spend it. But then, there are some things people believe about money that simply aren’t true. Likewise, some facts about money aren’t known to most people, like these four.
You can’t just print more money.
You often hear this from people who know little about economics, which is pretty much most people. The idea is that America can’t be broke because the Central Bank can simply print more money to cover the debts and needs the country might have. Unfortunately, it doesn’t work that way.
Printing more money wouldn’t make everyone more prosperous. It would simply spread the value of whatever we have over a large number of dollars. Everyone would have thrice as much money as before, but things would be thrice as expensive. Your money would be more or less without value.
The pyramid and eye on the dollar aren’t about the Illuminati.
Although it’s not easy to spot, there are two suspiciously hidden symbols on the $1 bill. It’s an open eye within a triangle surrounded by what seems to be a ray of light. Many have speculated on this symbol’s meaning, although the widespread consensus is that it’s a sign of the Illuminati. However, why would a secret organization put such a prominent sign on the dollar bill?
The truth is actually less exciting. The pyramid and eye are one half of the ‘Great Seal of the United States.’ The other half is the shielded eagle carrying arrows on the other side of the dollar. The pyramid represents the US’ strength and longevity, and the ‘eye of providence’ symbolizes good fortune watching over the country.
These symbols were designed in the 18th century, and believe it or not, they were significant to the new country.
Debt is actually good for you.
Most people think of debt as a necessary evil — the cash infusion you need to get out of an uncomfortable situation. Unreasonable interest rates and the consequences of default have given debt a bad name. However, objectively speaking, debt could actually be good for you.
Borrowing a little bit of money helps build your credit score. It shows lending institutions that you’re a reliable debtor who always pays. It also gives you access to larger sums in case of emergencies.
While we’re on the topic of credit score, you should know that paying your taxes doesn’t actually affect your score. Tax evasion can get you audited, fined, or even sued, but it won’t reduce your credit score. Why would you risk all that when you can easily use a free tool to sort your taxes?
Contacts are more important than money.
If given a choice between receiving $1 million and meeting a Fortune 500 entrepreneur, many people would favor the cash. This seems like a smart move on the surface because you can do more with the money than you’d accomplish with the connection. Or, can you?
In some situations, rich contacts are much better than money in the bank. This is because the amount you have is based on several factors, including the economy, your current needs, and unforeseen circumstances. But then, with rich contacts and expertise, you stand to make as much money as possible by striking deals or just being in the right place at the right time.
You may also like: 5 Pieces of Money Advice You Shouldn’t Ignore
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