Why You Are Not Rich: Financial Misconceptions That Hurt Your Bottom Line


Myth: Two incomes are better than one

A dual income household makes sense only if the combined earnings exceed your expenses by a fantastic margin. There are a plethora of additional expenses associated with a dual income household — childcare, commuting for both partners, eating out regularly, and so on. If you and your partner do not make enough money to justify these expenses, then one is better off being a stay-at-home parent as it allows you to reduce your expenses and save more.