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.
"Cash is always the best decision." This isn't always the case, especially if you know which credit cards are available. Many of them offer benefits that encourage people to continue using them. Cashback is one of the shining examples, but there are others that names like Bob Jain can tell you about. It's important to carry cash in case of emergencies, such as a credit card being declined, but it's far from the ideal payment method.
"Only those that are wealthy can invest." While having a sizable bank account certainly helps, it's not a requirement for investing money. In fact, it's entirely possible to take a small amount from your weekly or biweekly paycheck, placing it in a separate account for the future. While it may take time to build, you'll be amazed by what you've accumulated by the end. Don't assume that investing is only limited to the wealthy.
"It's too early to save for retirement." On the contrary, it's been said that you benefit the most from retirement saving by starting at around age 30. It makes sense, as you're able to put money into your account sooner. Many people assume that their age determines when they should begin saving, which usually isn't the case. The earlier that you begin planning for retirement, the more money that you'll have to use during your golden years.
"I'm already secure, so why do I need an emergency account?" Simply put, you never know what might happen in life. Perhaps you end up leaving your workplace unexpectedly. Maybe a medical emergency arises that requires you to be out of work for during an extended period. The costs will add up, but an emergency account can cover many, if not all, of the costs. It's a simple matter of how you put into this account and, just as importantly, how early you begin saving.
"Cash is always the best decision." This isn't always the case, especially if you know which credit cards are available. Many of them offer benefits that encourage people to continue using them. Cashback is one of the shining examples, but there are others that names like Bob Jain can tell you about. It's important to carry cash in case of emergencies, such as a credit card being declined, but it's far from the ideal payment method.
"Only those that are wealthy can invest." While having a sizable bank account certainly helps, it's not a requirement for investing money. In fact, it's entirely possible to take a small amount from your weekly or biweekly paycheck, placing it in a separate account for the future. While it may take time to build, you'll be amazed by what you've accumulated by the end. Don't assume that investing is only limited to the wealthy.
"It's too early to save for retirement." On the contrary, it's been said that you benefit the most from retirement saving by starting at around age 30. It makes sense, as you're able to put money into your account sooner. Many people assume that their age determines when they should begin saving, which usually isn't the case. The earlier that you begin planning for retirement, the more money that you'll have to use during your golden years.
"I'm already secure, so why do I need an emergency account?" Simply put, you never know what might happen in life. Perhaps you end up leaving your workplace unexpectedly. Maybe a medical emergency arises that requires you to be out of work for during an extended period. The costs will add up, but an emergency account can cover many, if not all, of the costs. It's a simple matter of how you put into this account and, just as importantly, how early you begin saving.
No comments:
Post a Comment