7 Common Misconceptions about Money You Should Not Believe ...

One of the worst misconceptions about money is that something will come to your rescue. Maybe you'll win the lottery or receive a sizeable inheritance. An inheritance is possible, but cannot be counted on. And a lottery win just isn't going to happen. Reaching your financial goals comes through a combination of three things: work, investments and sensible spending.

Even if you live in a country with a welfare state, you should never assume that the state will look after you if you become sick or lose your job. Cutbacks are being made all the time, and even if you receive welfare, it will not be that generous. Have your own insurance or a back-up plan.

When interest rates on savings accounts are so low, many people think that it is not worth saving. This is only true if you have debts, and are paying a higher rate of interest than you are receiving on your savings. Then it makes sense to target money on paying off the debts rather than diverting it to savings. But you really should have a savings plan in place.

We'd all like to have more luxuries, but if we did, would they actually feel like luxuries? It's a moot point admittedly, since most of us can't afford them. So there's no point feeling like you deserve them; it'll just make you feel resentful and envious of those who have more.

How often do we tell ourselves that we really need a new phone, pair of shoes or vacation? Often we don't actually need something, we want it. Big difference. If you do actually need something, the chances are that you can manage without the most expensive version. If you can't get to work without a car, a reliable $8,000 car will do just as well as a new $25,000 model.

Gambling is not fun, it's addictive. We've been conditioned to think that there's nothing wrong with spending a couple of dollars on a lottery ticket. It's just a little bit of fun, right? Just a little harmless flutter? The chances of winning anything are incredibly low, yet you check your numbers eagerly. Add up how much you spend on these acceptable forms of gambling and you might be shocked.

Never assume that your partner will always be around to support you financially, or that your parents will leave you all their money and assets. This is a complacency you can't afford. Divorce has left many people a lot worse off financially. Your parents may decide to leave their money to someone else, or have to spend it all on care.

Everyone needs to educate themselves about money and make smart decisions. Use your money wisely, so that you can look after yourself whatever happens. You cannot and should not rely on someone else to save you. What is the worst financial mistake that you've ever made?