One might have come across multiple financial advices in the course of time from parents, friends and family. However, some pieces of the advice are useful but you don’t agree to do certain things as you feel too lazy to do so. There are few of personal finance myths also which are needed to be debugged as they can bring lots of positive changes in your financial life. In this article, we have mentioned some financial myths that one should not believe to grow financially.
Huge money to invest: It is one of the most common financial myths believed by majority of individuals as youngsters think they just started their career and not earning enough to afford an investment but it is simply a month because investment can also be started with smaller amount. The smaller investments always yield great returns if started early and help to save your taxes.
An emergency fund is not important: It is another financial myth that can land you in troubles in the future. Setting an emergency fund is one of the basic financial needs of everyone but due to lack of knowledge, it is ignored by many people.
Some people think funds can be arranged easily at a time of need and "Apply For Personal Loan" but the interest rates are very high on this loan. Therefore it is necessary to allocate some percentage of your monthly salary towards emergency funds.
Investment in gold is not always good: From past times, purchasing gold has been considered as one of the best investments but if you want great returns then yellow metal is never enough. Besides that, if you invest in other portfolios, you can get good returns such as investing in mutual funds or equity funds than in a precious metal.
Credit cards are bad: These magical plastic cards are not a real trouble but the credit card debt is as it can lead you to stress to be in a debt trap only if you don’t use these cards wisely. However, these cards offer security, cash back, discounts as well as convenience but outstanding dues and untimely bill payments can accumulate a debt on you. Well, if you are enough wise to use the credit cards properly, then why to say no anymore.
Retirement planning at early age: The retirement age of any salaried employee is 60 or 65, so thinking of planning about it at the age of 45 is not enough as it is the time when your financial responsibilities are at peak such as child education, marriage, getting your own house or vehicle etc. Therefore, investing at early age towards retirement plan gives you great returns to be secured in old age.
Well, half of the generation believes on these myths but decision making power always lies within you. So, never believe on any myths till the time you don’t have enough knowledge about particular thing. Learn the financial management skills at early age to be financially free and successful in your life.
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