Common money myths busted: 10 myths!
Do you sometimes feel like your money is disappearing from your wallet without knowing where it’s going? You can read on to learn the most common myths busted!
Find out which are the 10 most common myths we busted!
Do you know how to manage your finances in a way that sets you up for success? There can be many common money myths that we’ve busted for you to understand more about it!
Also, we know it can be confusing trying to sort through the conflicting information about money.
Moreover, when it comes to personal finance, there is a lot of misinformation out there, which makes it hard for us all to make the best decisions about our financial health.
Therefore, to help you cut through the noise and focus on the facts, we’ve busted common money myths so that you can better inform your decision-making process when it comes to managing your finances.
So, keep reading to learn the truth behind these popular but false beliefs!
How does money work?
To store or transact value, or to act as a medium of trade, is what money is all about. Also, what matters is not what is actual or even what is imagined, but rather what people feel has value.
In addition, money is useful since it may be used for buying things and putting money away.
Also, so that it may be utilized, people agree to give money a certain value. Moreover, acceptance of a common currency or accounting system is essential for money to be of any use at all.
Therefore, money is founded on social agreement. Hence the actual currency used might be anything. It might exist in the physical world or be entirely virtual.
However, although there is great diversity in the types of currencies, they all have common features.
You will be redirected to another website
Here are 10 common money myths busted!
Now that you’ve learned more about how money works, you need to know the most common myths that we busted! Therefore, read our list below of the most common money myths!
Money makes you happy
Many people think that they will feel better about themselves if they have more money in the bank. However, it won’t make you completely content in other areas of life.
Also, the most common misconception about financial success is the idea that more money equals more happiness. The truth is that the path to your greatest joy is self-discovery.
It is not good to have credit cards
Having a heavy debt load is never a good situation. But not all debt stunts development.
Moreover, making little, regular purchases on a credit card can be beneficial in a number of ways.
Therefore, this is the case if your monthly payments are at least the minimum needed amount, ideally the entire amount.
Saving money is not easy
With as little as $10 per month, you may begin a regular savings plan. Also, you might be in a better position to build up a sizable emergency fund if you do this.
Therefore, set up a monthly direct deposit into an easy-access savings account, and you won’t have to worry about forgetting to save.
Hopefully, you will be able to abandon your old habits of not saving any money. Also, you’ll be able to start saving even more over time!
If I save with food delivery, it will be a game-changer
There’s an old adage that says eating out once a week is terrible for your retirement fund.
However, people don’t need to take extreme methods to accomplish their aims.
Moreover, you can save money while still finding ways to have fun. Also, you have the right to use your money for leisure activities and more!
However, you’ll need to make a plan to do this in a healthy way! Moreover, the next step is to prioritize your spending according to how much extra money you have.
You can’t invest if you’re not rich
We’ve all heard the myths that investing is just for the rich or that we don’t have enough money to start. However, you can start investing with just $10 a month!
Moreover, the best part about most investment vehicles is the low minimum commitment required to get started.
Therefore, the high rates of return they provide make them an obvious choice above simple savings.
There is no need for emergency savings
The worst myth is that individuals don’t need any extra savings for unexpected events.
Also, you shouldn’t consider money from these sources for long-term goals like retirement or large purchases like a car, house, or vacation.
Instead, this is an emergency savings account for situations like keeping up with monthly bills after your boss fires you.
This way, you’ll be able always to have money in case you get fired, or there is an emergency in your family or a medical emergency in your life.
You can’t get a mortgage if you’re autonomous
The self-employed can choose from a wide variety of mortgage options. All right, so the application process for a mortgage is different for those who are really in the workforce currently.
However, lenders are becoming more tolerant, and they accept a year’s worth of salary as collateral for a mortgage by some borrowers.
I’m too old to start investing
You can start whenever you choose. You can always find a way to move ahead when you dedicate yourself to improving your financial situation.
Moreover, believing in your own ability to complete the work at hand is the first step toward achieving success.
Always keep track of the market to invest
Taking out a loan to invest in a speculative asset like Bitcoin or shares is a dangerous game to play.
Moreover, taking out loans to invest is not a smart idea if you are inexperienced. Therefore, you’ll need to do some research regarding how investments work before you start.
You need a new car
There are a few folks who, for whatever reason, can’t stomach driving anything except a brand-new automobile.
Maybe these folks are just fascinated with cutting-edge gadgets. They probably also don’t want to deal with the potential hassle of fixing up an older vehicle.
Also, a new automobile may seem like a good investment. However, it’s actually a depreciating asset.
Therefore, when you drive off in a brand-new automobile, you can immediately lose about 5-10% of its value.
Becoming a millionaire with day trading: is it possible or is it a money myth?
Many people dream about becoming a millionaire. But there is no one-size-fits-all when it comes to finances. So the thing that works for other people might not work for you.
But what about day trading? It is really possible to become a millionaire by doing it?
We’ve done deep research on this topic, and you can learn more about day trading and earning possibilities by reading the following post.
Have you ever wondered if you could be a millionaire by day trading? Learn 9 myths and facts about investing in this market to decide if it would be a good idea for you!
About the author / Victória Lourenço
Reviewed by / Aline Barbosa
How to apply for the BayFirst Loans?
Check out how to apply for BayFirst Loans and learn how to get the money you want or need, no matter the purpose you must achieve.Keep Reading
How to apply for Equifax?
Find out how easy it is to apply for Equifax and get the right plan for you to stay aware of your credit & report monitoring and protection.Keep Reading
You may also like
What is PayPal Credit and how does it work?
How does Paypal credit work? Learn what PayPal Credit is, its benefits for customers, and how to use it to buy the things you want online - from fashion accessories to electronics.Keep Reading
Elon Musk announces Twitter bid on hold
A few weeks after Elon Musk made a $44 billion bid to buy Twitter, the billionaire CEO of Tesla and SpaceX has announced that he is putting the deal on hold. Keep reading to learn more.Keep Reading