The Worst Money Myths You Need To Forget



We all make mistakes, especially where money is concerned. Managing finances and clearing debt aren’t simple tasks, after all, so it’s easy to become confused. What makes it so much harder is the vast amount of unreliable information out there. When you buy into silly trends or spend way too much on takeout food, that is mostly your own fault, but the errors you make after following seemingly sound advice aren’t. Before causing your finances any more harm, you must separate the fact from the fiction. With that in mind, here are thirteen money myths to ignore. 

1. Two Paychecks Are Better
Bringing more money into your household is rarely a bad thing. However, before you and your partner both get jobs, you must consider the costs likely to be involved. If you have children or pets, you might have to hire help to look after them while you’re both at work. Commuting and buying lunches both cost money too. If this expense adds up to more than the extra paycheck, then it isn’t worth it. This is especially true if having more money makes you a careless spender. 

2. Debt Should Be Avoided
Debt isn’t the terrible thing that many people make it out to be. When used wisely, debt can prove to be a helpful tool, allowing you to realize your financial dreams. Credit cards also offer much more protection than cash, which means that you can make a claim with your credit card company if you need to. When you pay the debt off, you improve your credit score and history too. Only borrow what you know for sure you can pay back, and you shouldn’t face any problems. 

3. Skipping Repayments Is Illegal
Being unable to make your debt repayments isn’t a criminal offense. No matter what your lender might tell you, they can’t send you to prison for refusing to pay them back. This type of debt collection tactic is aggressive and manipulative, so can actually get them into trouble. If you feel as though you’re being harassed, then learn how to make a payday loan complaint and do so. No lender should leave you scared just because you’re struggling financially and can’t pay them. 

4. Carrying A Balance Works
Credit cards can definitely help you to improve your credit score. However, the belief that carrying a small credit card balance will do this is entirely false. To maintain a good credit score, you must pay off your balance in full each and every month. If you can’t afford to make these payments, your credit score will still be affected, just not in the way that you wanted. This is why you should only use your card to make payments that you are sure you can pay back later. 

5. Checking Your Score Hurts
Checking your own credit score is a sensible thing to do. In fact, most financial experts suggest that you should do so at least once a year. This means that, if you discover your credit score is lower than you want it to be, you can make the changes necessary to improve it. This is crucial if you plan on applying for credit in the future. Although it will hurt your score for too many outside agencies to get copies of your credit report, checking your own credit score isn’t a problem. 

6. Using ATMs Is Dangerous
While cards offer better protections, now and then you will need to make payments in cash. The trouble is, many people are afraid of using cash machines. While it is true that crooks can gain access to your finances by using ATM card readers, there is no reason why you shouldn’t use them. If you ever found yourself to be a victim of this scam, your bank would reimburse whatever money was lost. You can, however, prevent this by avoiding machines that don’t look quite right.

7. Quality Goods Cost More
The idea that you get what you pay for isn’t always accurate. More often than not, you can find quality goods without having to pay through the nose for them. From medication to skincare products, there are many goods where the ingredients mean much more than the price tag. Before paying more for a product, make sure that you consider the differences between it and a cheaper one. If you find that there aren’t many or any at all, then stick with the cheaper one. 

8. Always Buy In Bulk
Buying in bulk can be an effective way to save money on shopping. However, that doesn’t mean that every purchase you make should be made in large quantities. Perishable items should only be purchased when you need them; otherwise, they will likely go bad before you get a chance to use them. This will waste a lot of money, rather than save it. Non-perishable items, like toiletries and canned goods, on the other hand, can be bought in crates, just as long as you will use them.

9. Renting Property Wastes Money
When you rent a house, you don’t get to keep the property, like you would when you buy. Although this can seem wasteful, the advantages of renting make it the best option for many people. If you move around a lot, haven’t yet begun a family, or have just started a new career, the flexibility of renting is definitely beneficial. Buying a house might work out cheaper in the long run, but, if you don’t plan to stay in one place, it can work out to be more wasteful than renting.

10. Only The Wealthy Invest
When most people think of investing, they imagine stocks, houses, gold bars, and jewelry. None of these investments are cheap, but, thankfully, they aren’t your only options. There are investment opportunities out there for everyone, even those on low incomes. All that you have to do is find the right one for you. You can get started with most of these options right away, but that doesn’t mean that you should. There are always risks involved, so be sure you do your research.

11. Lending Money Helps Friends
Anyone who asks a friend or relative to lend them money isn’t managing their finances correctly. Instead of taking responsibility for their mistakes by agreeing to grant this loan, you should see that they get professional help. Lending money to someone you love is never a good idea. There is a slim chance that you will get the money back again, which can put stress on the relationship. Money isn’t proof of love, but if you are going to help financially, it’s best that you make it a gift.

12. Emergency Funds Don’t Matter
Even with a credit card, you need an emergency fund. If you lose your job, it could take months for you to find new employment. In this time, you could rack up a lot of debt, causing serious financial problems. When there isn’t enough money in the budget to make savings, you have to cut back. Instead of ordering a takeaway every week, you could put this money aside. Emergency funds need to cover several months worth of expenses, so start saving right away. 

13. Parents Know Their Stuff
Most of what we learn in life we do so from our parents. From our very first moments on this planet, they begin to teach us things. However, that doesn’t make them qualified to give you financial advice. Times have changed a lot since your parents were your age. This means that most of their wisdom is likely to be outdated. Even if you think your parents know their stuff, you should do your own research just to be sure.

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