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    Organizing your finances isn’t easy because there is never enough money to go around. Securing the books while listening to personal finance myths is even harder. The problem is that the legends are manipulative. When you put stock in them, you make moves that wouldn’t occur otherwise. Plus, they are ill-advised because they aren’t true. The result is that your money won’t stretch as far. For anyone that doesn’t have much to begin with, this can be fatal.

    It’s imperative that you avoid the myths if you want to hit your personal finance targets. The only way to steer clear of the folklores is to learn about them in the first place.

    Below are the most common myths, and why you shouldn’t take any notice.

    Credit Card Debt Is Bad

    There is no doubt that debt isn’t helpful. In the grand scheme of things, it’s always the right choice to avoid owing corporations or people money. That way, everything you earn is yours, and there is no need to waste money on interest repayments. Of course, that scenario isn’t one which applies to most people. Lots of people need help, and so they turn to credit cards. As long as you understand the dynamic, a card can be an excellent source of income. For instance, it’s imperative that you know the interest rate on the card. Also, it’s a good idea to know if there are any incentives. An example is that some companies provide 0% APR on balance card purchases. Plus, there is always a way out thanks to balance transfers. Credit cards deserve respect, but they aren’t the devil.

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    I Need A Hefty Reserve Account

    Ask anyone how much they should have in their reserve account, and they’ll say ‘what’s a reserve account!’ Joking aside, they might say they aim to put three to six months expenses away for a rainy day. Although that’s commendable, it’s also a bit dangerous. For one thing, you might not have the cash flow to save that amount of money. Saving is easy when you use the little and often method, but it gets harder when the amounts get bigger. Don’t forget that three to six months is a generic amount of time, too. Who’s to say that you only need half a year? The truth is that you need an amount which covers the duration of unemployment. If that time is short, the reserve doesn’t need to be huge.

    I Can Do Without Insurance

    One thing you need to learn as quickly as possible is that all forms of insurance are essential. Sure, they seem like a con, especially when the company fails to pay. And, you will have to spend a lot on premiums which don’t come to fruition. However, they end up cutting costs if you ever need a helping hand. Say you have a car accident; the odds are high that you won’t be able to afford the costs. Insurance firms come up with the cash, and you pay them back over a length of time. Some people like to take risks, but it’s a huge gamble that won’t pay off. Anyway, there are cheap car insurance quotes online as well as cheap life insurance quotes. In fact, there are lots of ways to cut the cost of insurance.

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    There Is No Cost To Saving

    The reality is that there is no financial cost to saving if you do it correctly. Still, it doesn’t mean it doesn’t cost you in other ways. What you have to remember is that saving limits your options. Yes, it builds up a nice little nest egg for the future. But, you live in the present, not the future. Until you retire, you can’t touch the money you save. As a result, you will miss out on doing things like going on holiday or buying your dream car. Anyone that’s okay with these sacrifices doesn’t have to worry. Anyone that respects the future but wants to enjoy the here and now should slow down. Instead of putting away a couple of grand a month, limit it to half. Then, use the rest of the money as a treat.

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    I Can’t Invest – I’m Not Rich

    Only the wealthiest people dabble in the investment market, right? Nope. It’s true that rich people dominate a big percentage of the industry. For the most part, it’s because they have the surplus money to invest. However, it’s also because people on average wages believe the myth that they shouldn’t invest. On the whole, the market is open to anyone that has the brains and the guts. Of course, it might be the last thing on your mind if you’re struggling. But, one thing you should remember is that an excellent investment can change the course of your life. A project that pays off big or one that is steady can supplement your primary income. Even if it’s only a small amount, it can make all the difference. How do you know if you should take the plunge? Ask an expert for advice.

    I’ll Never Reach My Goals

    Far too many people adopt a defeatist attitude. So, instead of trying, they give up and wallow in self-pity. The thing to remember is that you will never clean up your finances if you don’t give it a try. No magic spell makes everything better; just hard work and graft. Plus, it’s amazing how much you can do in a short space of time. Take saving as an example. You might assume that putting away a little every week won’t make a big difference. If you do, you would be wrong. It only takes a few months to see a change in your lifestyle as well as your finances. And, the amount will only grow if you stick to the routine. The key to a successful personal finance strategy is a positive mental attitude.

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    Follow these tips and poof – the myths will disappear like a rabbit in a hat.