1. Renting is expensive and a waste of money – You might believe shelling out some cash on something that’s not even yours is the worst thing that can happen to you. But this is not so based on circumstances. Renting can be great when it means you reap the benefits when the land value depreciates. When you’re on loan, renting is much better. It’s also the most reasonable option to go for when you’re someone who isn’t so sure about how long you’ll be staying at the place.

 

  1. Investing is not for me – No matter who you are and what position you are in, investing is not something you should dismiss if you’re interested in it. Waiting and saving up for investment will only make you frustrated and the longer you wait, the more opportunities you may miss. There is no invisible criteria for who is allowed to invest and which moment is guaranteed to land your investment in success.

Money Myths

  1. Carrying a balance on my credit card improves credit rating – You indeed have to use your credit card to improve your credit rating. But it is equally vital that you not leave a balance as it incurs interest to be paid and therefore is not advisable. A bank is not going to trust someone who leaves a balance they couldn’t pay.

 

  1. Stock market falls are scary – Momentary stock market falls aren’t a big deal as you might think it is. It represents a dip in confidence which will eventually get restored. A temporary drop in market value is an excellent opportunity to invest. The golden rule of stocks is to buy when there’s a dip and sell when there it shoots up.

 

  1. There’s not enough money to save – This is probably the most common myth people believe. What’s important to understand is that saving is an activity that you must undertake, and it won’t just happen unless you start. At the beginning of the month, you must always put aside some money to save and then start spending and not vice-versa.

 

  1. We must invest in gold rather than U.S. dollars – Gold, as shiny as it is, doesn’t beat the U.S. dollar. The Federal Reserve has maintained the value of the U.S. dollar to make sure of that. So, if you’re an American, rest assured that you don’t have to start hoarding gold.

 

  1. Cold, harsh cash is best – Paying in cash isn’t as safe as paying electronically. The latter allows you to maintain a legally valid record that you can use for litigation claims. It makes sure of the fact that there will be no fraudulent activities on the part of the one selling their services as you can always prove through a bank statement that the payment went through to them.