Finance is one of the broadest topics that can be discussed. Even so, there are many statements that have been passed around that, despite their reach, couldn't be further from the truth. There exists a bevy of myths about finance, as the likes of Robert Jain can attest, which is why it's in your best interest to read up. For those that would like to learn more about this topic, here are 4 myths that you can start with.
"You should always pay in cash." This may vary based on preference, but cash isn't always the ideal payment method. Reputable names such as Bob Jain can agree, seeing as how there are many credit card options that reward their customers. Everything from frequent flyer miles to cashback can be given based on the card that you use. Cash may be preferred by many, but to say that it's the best option would be an oversight.
"You should only invest your money if you're rich." This is another financial misconception that deserves to be debunked. Even if you aren't making six figures per year, you can still put your money into something you'd like for the future. It's a simple matter of saving up small amounts over the course of time until you have an accountant you can be happy with. Investing money is easy if you have the patience for it.
"I don't have to save for retirement so soon." This is yet another myth that light should be shed on. Believe it or not, it's not unfathomable for someone to begin retirement saving during their mid-20s. While this may seem extreme at first, it should be noted that this will allow the individual to build their account sooner. This doesn't even begin to detail the increased amount that they stand to save, which only makes the idea of early saving that much more appealing.
"Since I'm financially secure, an emergency fund is unnecessary." You should think again, as emergencies can occur at any moment. For instance, if you work a physically-taxing job and you pull a muscle in your shoulder, you're going to need time to rehab the injury. An emergency fund may help you cover certain costs. Furthermore, you won't be entirely out of luck if you're out of the workplace for an extended length of time. "Better safe than sorry" is a term that's made for this type of fund.
"You should always pay in cash." This may vary based on preference, but cash isn't always the ideal payment method. Reputable names such as Bob Jain can agree, seeing as how there are many credit card options that reward their customers. Everything from frequent flyer miles to cashback can be given based on the card that you use. Cash may be preferred by many, but to say that it's the best option would be an oversight.
"You should only invest your money if you're rich." This is another financial misconception that deserves to be debunked. Even if you aren't making six figures per year, you can still put your money into something you'd like for the future. It's a simple matter of saving up small amounts over the course of time until you have an accountant you can be happy with. Investing money is easy if you have the patience for it.
"I don't have to save for retirement so soon." This is yet another myth that light should be shed on. Believe it or not, it's not unfathomable for someone to begin retirement saving during their mid-20s. While this may seem extreme at first, it should be noted that this will allow the individual to build their account sooner. This doesn't even begin to detail the increased amount that they stand to save, which only makes the idea of early saving that much more appealing.
"Since I'm financially secure, an emergency fund is unnecessary." You should think again, as emergencies can occur at any moment. For instance, if you work a physically-taxing job and you pull a muscle in your shoulder, you're going to need time to rehab the injury. An emergency fund may help you cover certain costs. Furthermore, you won't be entirely out of luck if you're out of the workplace for an extended length of time. "Better safe than sorry" is a term that's made for this type of fund.
