11 Myths about Money

Forget everything you've learned about credit. Well, maybe not everything. "Living within your means" is obviously important, but you should be ready to rethink everything you know. Because as it pertains to debt, credit reports, and credit scores, conventional wisdom is peppered with myths, misunderstandings, and misrepresentations. Credit is really a tool. Like any tool, it's neither good nor bad in itself. What matters is how you employ it.

Money is a bad thing (and rich people too)

This is the biggest myth about money, and it's clear to see why. Many of our issues are linked to money, either by its scarcity or by its abundance.

On usually the one hand, it's common to genuinely believe that having more money will solve all your problems. On another hand, it is also vital that you see money as a perverting component of people. It is the classic “look how Jaden has changed since he won the lottery or simply because they made him boss.”

The fact remains that money is neither bad nor good; it's more of a tool that may allow you to achieve your vital goals, depending on what you employ it.

It's normal to have a lot of debt.

When you yourself have a mortgage, student loans, an automobile loan, and a maxed-out charge card or two, you're not alone. According to Experian, consumer debt reached a record high of $14.1 trillion in 2019. 

Lots of people need to take out a loan to get an automobile, house, or earn a degree.

Millionaires are those who make a lot of money

What is it want to be really rich? To produce a lot of money or to have a lot of money? They could sound the same, but there is really a subtle difference. In fact, you may make a lot of money, millions even, and not be described as a millionaire.

Advisers Push You Into Products That Make Them Commissions.

Ok – this is really a half myth. In Australia about 60% of advisers are aligned to among the major financial institutions, each with an array of products they can offer relevant customers. The financial advice industry used to check out a commission-driven sales approach, and recently all four big banks have committed to winding back the “deep-seated” culture of product-based incentive payments.

Your Finances Are Too Simple For Advice.

You might not have too much to manage, but it's possible you're missing out on opportunities because that you don't understand them https://scamrisk.com/11-myths-about-money/.

Instead you need to treat a financial adviser like your doctor. Having an adviser working with you throughout various stages of your daily life is comparable to seeing a health care provider as time passes for annual checkups. The relationship you build helps you spot a problem in its early stages, as opposed to when you're in tremendous pain. And it also never hurts to get a second opinion!

Investing is only for the rich

In line with the aforementioned, many people genuinely believe that investing is limited to the rich or for those who have plenty of money. Nothing is further from reality. Today there are investment options suitable for all profiles starting at $100 a month.

The only real rule you should follow before investing is to have a financial cushion for emergencies, which must certanly be in a safe place and free of most risks.

Saving is for the future

Most people save for contingencies and to secure their retirement. Quite simply, they save for future years and not so tangible and unspecific goals.

Thus, saving becomes an arduous journey. The answer is to improve your approach and take advantage of the small benefits that saving provides in your daily life. The initial one you only saw in the previous point: because you have a contingency cushion, you live with less stress.