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Money Myths That Could Easily Ruin Your Finances

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Last Updated on by Noni May

Everyone makes mistakes, especially when personal finance is concerned. People waste money on silly things every day, from fancy coffees to new gadgets. We buy into trends, apply for huge loans, and never save for the future. Although these mistakes are mostly our own fault, sometimes bad advice has an influence. The world of personal finance is filled with old wives’ tales and falsity. With that in mind, here are a few money myths you must always ignore. 

Quality Goods Cost Extra

People don’t always get what they paid for. Although many people assume that quality goods cost extra, spending more money usually has no benefit. There are many examples that prove this to be true. Medications, for instance, must contain the dosage printed on the packet. This means that different brands don’t work any differently, despite being sold at various prices in stores. 

Debt Should Be Avoided

Being in debt isn’t the nightmare many people believe it to be. It’s only once you allow your debts to get out of control that the trouble starts. When used correctly, debt has many benefits. Not only can it improve your credit score, but it allows you to achieve your financial goals too. As long as you make the monthly repayments and clear your debts, you have nothing to worry about. 

Compensation Claims Are Ageless

An injury is traumatic enough before you consider the costs involved. Thankfully, when that injury isn’t your fault, you can usually make a compensation claim. With personal injury lawyers, like Krzak Rundio Law Group, it’s possible to get compensation for your car accident or slip and fall. However, these claims do have a time limit, so make sure you don’t wait around for too long. 

Only Wealthy People Invest

Gold bars, stocks, and houses are what most people picture when they imagine investing. The trouble is, none of these investment options is cheap. This has led many people to assume that only the richest of us are capable of making investments. Thankfully, this isn’t true, as there are many investment opportunities available, even several for those on the lowest of incomes. 

Renting Property Is Wasteful

Buying a house works out much cheaper than renting over the years. However, that doesn’t mean that renting is wasteful. Although you don’t receive a physical asset for your investment, there are many other benefits to consider. If you move house often or haven’t started a family yet, renting property gives you the freedom and flexibility you need to relocate or upgrade later. 

Emergency Funds Don’t Matter

No one can predict what trouble is around the corner. Although your finances are in good health now, that doesn’t mean they will be next week. A house flood or car accident could result in unexpected costs that put pressure on your budget. Rather than borrow money, you should have emergency savings set aside to cover any expenses that might crop up over the years. 

To protect your finances, make sure you ignore the common money myths debunked above. 

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