4 Financial Myths to Avoid Like The Plague

by Susan Paige on May 30, 2019 · 0 comments

It would be fair to say that there are more than a handful of myths when it comes to your financial health.

While a lot of us might wish to be leaders of big corporations turning over millions of dollars, as it turns out it doesn’t have to be like this. In other words, you don’t need to be a A-list business leader to be rich – plenty of people around the world in “normal” jobs also fall into this category.

People that manage to do this do it in very shrewd fashion though. They don’t fall for some of the common financial misconceptions that blight so many of us, and what we will now look into through the course of today’s article.

Myth #1 – Banks are your best friend

Sure, there is a time and a place for a bank, and they are undoubtedly a convenient way to keep your money.

However, don’t be fooled into thinking that they are the best way to “make money”. Sure, they might advertise so-called attractive interest rates, but when it comes to the crunch these are often below the rate of inflation. What this means is that you are theoretically losing money when you save with them.

This is where shrewd investment tactics really come into their own. Try something like the Metatrader 4 demo account to get started with investing. Sure, it can carry its risks, but the rewards far outweigh anything a bank can offer.

Myth #2 – Student loans need to be paid off immediately

We all leave university with these huge levels of debt, but don’t be fooled into thinking that the best approach is to pay off these loans as a matter of urgency.

Sure, in an ideal world we would be debt-free, but let’s look at this practically. Most of us are not in a position where we can pay off tens of thousands in a flash. We need to pay it off gradually and considering the cost of borrowing this money tends to be very low, there are other priorities (such as credit card debt) which you should be tackling first.

Myth #3 – You should always buy a house over renting

As we all know, there is a big push to get people on the property market – and rightly so.

However, timing is everything here. Sometimes, it can be far more cost effective to rent and invest in other concepts in a bid to grow your money. Let’s not forget that mortgages are a huge monthly commitment, and house prices in some areas mean that you are barely treading water just to afford them. It can sometimes be advisable to take up other forms of investment in the short-term, before buying a house when your finances are truly ready.

Myth #4 – Invest in gold

Finally, let’s talk about gold. One of the most common pieces of advice doing the rounds is that you should invest in this as it’s the only thing that guarantees returns.

Well, here is a newsflash, nowadays gold is volatile. Some people have lost huge amounts of money investing in this commodity, so this is why we would urge extreme caution and instead advise you to consider other investment avenues.

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