5 Money Myths That Deserve a Reality Check

By: Felix Diaz, P. Eng.

In a world overflowing with financial advice, it’s easy to fall for oversimplified narratives. But when it comes to managing your money—especially in Canada’s dynamic economy—nuance matters. Let’s debunk five persistent myths with facts, logic, and a dose of strategic thinking.

Myth #1: “Renting is throwing money away.”

Not even close—and the math backs it up.

• Closing costs in Canada range from 2–5% of a home’s value. On a $500,000 home, that’s up to $25,000 gone before you even unpack.

• If you sell within five years, realtor fees, taxes, and market swings can leave you with net losses.

• Renting = flexibility. You’re free to pivot with career changes, family needs, or lifestyle shifts.

• Opportunity cost: A $100,000 down payment could earn 6–8% annually in diversified investments while you rent at a predictable cost.

And if relocation is on the horizon—whether for work, family, or lifestyle—renting makes even more sense. Holding onto a property as a rental might sound appealing, but managing tenants, maintenance, and market risks from afar can quickly become a logistical and financial headache.

Renting isn’t wasteful—it’s strategic when your life is in motion.

Myth #2: “Debt is always bad.”

Not all debt is created equal.

• High-interest consumer debt (like credit cards)? Risky. But low-interest debt used for education, business, or real estate? Potentially powerful.

• In Alberta, student loans and small business financing often come with favorable terms and tax perks.

• The key is disciplined leverage—using debt to build assets, not inflate your lifestyle.

Smart debt can be a launchpad for financial growth—if used wisely.

Myth #3: “Investing is only for the wealthy.”

Wrong. Investing is for anyone with a plan and a bit of consistency.

• Start with just $50/month. At a 7% annual return, that grows to over $120,000 by age 65. That’s compound interest doing its magic.

• Ronald Read, a Vermont janitor, quietly built an $8 million fortune by investing in blue-chip stocks over decades. No windfalls. Just patience and discipline.

• Platforms like Wealthsimple, Questrade, and bank-based TFSAs make it easy to start small and grow steadily.

Wealth isn’t about income—it’s about consistency.

Myth #4: “Budgeting means cutting out everything fun.”

Nope. Budgeting is about intentional spending—not deprivation.

• A solid budget includes a “fun fund”—for travel, dining, hobbies, whatever lights you up.

• Tools like YNAB and Mint help align spending with your values, not guilt.

• In Alberta, where seasonal costs fluctuate, budgeting helps you stay ahead—not scramble to catch up.

Budgeting isn’t punishment—it’s permission to spend wisely and live intentionally.

Myth #5: “If you make more money, you’ll automatically save more.”

Sounds logical—but it’s dangerously wrong.

• The truth? Most people don’t have a savings problem—they have a spending reflex. As income rises, so do the temptations: upgraded homes, luxury cars, gourmet groceries, and subscriptions you forgot you signed up for.

• It’s called lifestyle creep—and it’s sneaky. You feel richer, but your bank account doesn’t.

• Without a plan, higher income just fuels higher expenses. You’re not building wealth—you’re just upgrading your liabilities.

• The fix? Automate your savings. Treat it like a non-negotiable bill. Pre-authorized transfers to your TFSA, RRSP, or emergency fund make saving effortless—and invisible.

Saving isn’t a side effect of income—it’s a system you build.

Final Thought

Money myths thrive on simplicity—but your financial life deserves better. Whether you’re renting, investing, or managing debt, the smartest move is the one that fits your goals—not someone else’s narrative.

Let’s Talk Financial Literacy

Whether you're navigating Alberta’s housing market, exploring investment options, or just trying to make sense of your budget—financial literacy isn’t a luxury, it’s a necessity. And it doesn’t have to be overwhelming.

If you’re ready to take control of your financial future with clarity and confidence, let’s connect. I’m passionate about helping people cut through the noise, bust myths, and build strategies that actually work for their lives.

Whether you're just starting out or looking to level up, I’d love to collaborate on:

• Personalized financial literacy planning

• Workshops or webinars for your team or community

• One-on-one strategy sessions

• Content partnerships to spread smart money thinking

Let’s build financial confidence—one myth at a time.
Reach out and let’s start the conversation.

Email/Phone: diaz.felix@gmail.com; +1 (403) 498-4775