Monday, January 27, 2020

Breaking The Bank: Money Myths You Must Stop Believing

We all want to make smart financial moves. But sometimes the commonly accepted "truths" about money might actually be steering you wrong. Here's some money myths you might want to rethink.

There is no shortage of bad advice out there - and falling for it could cost you money. We all grow up hearing the same money tips: Invest early, spend less, and save more. Although most of this guidance is helpful, there is plenty of widespread financial advice that isn’t true. Usually, other people, like parents, give you poor guidance, but you might steer yourself in the wrong direction too. With that in mind, here are six terrible money myths that could break the bank.

Quality Goods Cost More

Customers don’t always get what was paid for. While many people assume that quality products cost more, spending extra money sometimes has no benefit. There are countless examples that prove this to be the case. Medicine, for example, always contains the dosage printed on the box. This means that, despite the variations in price, different brands have to work equally as well.

Two Paychecks Are Better

Bringing more money into the house certainly sounds like a good thing. However, you must think about any additional costs involved. Couples with children might need to hire a sitter if both of them were to work. In addition to travel and food costs, there could be very little benefit. When the expenses involved in working add up to more than the salary, one paycheck works out best.

Debt Should Be Avoided at All Costs

Having debt isn’t terrible, despite what some people say. When used wisely, debt is a helpful tool, allowing you to realize your financial dreams. Taking out a rental loan, for example, from a lender like, would allow you to purchase and rent out a property, or you can take out a loan to start a business to make money. Credit cards have many benefits too, including protection. Plus, when you pay off debt, it boosts your credit score.

Only Wealthy People Invest

Houses are among the first assets people think of when imagining investing. Unfortunately, not everyone can afford to get on the property ladder. The good news is, you can still make an investment. There are many investment opportunities available, even for people on low incomes. However, there are risks involved, so you must do your research before splashing the cash.

Emergency Funds Don’t Matter

An emergency fund is always essential, regardless of your circumstances. If you were to lose your job, it could take months for you to find new employment. In this time, you would rack up thousands in debt, which can cause huge financial issues. Anyone unsure of how to start building emergency savings should check out for helpful information and advice.

Lending Money Helps Friends

We’ve all dealt with money trouble at some point. Because of this, when loved ones reach out for financial help, you might feel compelled to lend them cash. However, most people needing a loan like this aren’t managing their finances well. This means that you’re unlikely to get any money back soon. Additionally, quick fixes don't help people learn to take control of their finances, they need to figure it out on their own, slowly. Lending money to friends doesn't help them out in the long run, and is generally just money down the drain.

There are so many common money myths. Hopefully this post enlightened you to help avoid some of the more common ones, and be more money smart.