Out there are many misconceptions and myths about money. Many of these myths are completely false and sometimes it is difficult to understand what is true. Our friends, our family and the media, everyone have an different opinion on this. There is a lot of misinformation about personal finance, so let’s take a look on the most popular and biggest myths about money.
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Money won’t make you happy
I guess this one was made by someone who never had money, because it does. Maybe chasing money, working for money or trying to figure out where to get money won’t make you happy, but spending it- deffinately will. And by the way financiall stability is not so horrible. As they say, it’s better to cry in a Ferrari than a bus.
“Money, money, money,
In the rich man’s world…”
ABBA Nailed it!
If you still think that money can’t make you happy, feel free to transfer it to my bank account.
Debt is a financial instrument
Some tools help keep things in order, while others only break them down. If you look at it from this perspective, debt could indeed be reflected as a financial instrument, but bad one, that cuts the gaps in your financial future. Debt, just like the best Fast credit, is the enemy of your potential income. The monthly payments you pass on to credit card and loan companies are potential monthly savings you could invest in your future. Your income is the most important wealth creation tool, don’t give it away for debt repayment.
Lending money to your family shows your care
In fact, lending money to family members is a terrible idea because such a loan is rarely repaid. And when that happens, debt always creates uncomfortable situations at family events. Especially when a relative to whom you have lent money and waiting for repayment tells you about his exotic vacation. If you really need to help relatives with money, give it as a gift. Lending money to a family member is one of the fastest ways to ruin your relationship.
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I don’t make enough money to make a budget
You should have a specific budget no matter how much money you spend on your household. But if you live from paycheck to paycheck or realize that earning hardly streches till the end of month, making a budget is even more important so you can analyze your spending and find ways to save. A budget allows you to determine exactly where all your money is going. Don’t let money control you.
I don’t need a savings account because I have a credit card.
This is the safest way to get into debt and ruin your credit history. Although nowadays a loan with a negative credit history is nothing new, it is crucial to introduce a savings account in your daily life. You cannot always plan for emergencies and unexpected turn of life. Instead of collecting medical expenses, car repair and home improvement expenses on your credit card, save before you spend and avoid debt.