16 May 5 Money Myths Busted
Finances are a tricky business. It can be difficult to be financially stable and to make the right decisions when it comes to our spending. There are a million and one money myths out there that tend to discourage people from spending their money how they want. Now it’s time to debunk those myths.
Myth #1: Splurging is not okay.
This is not something that you want to do all of the time but every once and a while, it is okay to splurge on something that you really want or something that will help you cut costs in the future. Before you splurge, make sure that you actually have the money to do it so that you’re not hurting yourself in the long run.
Myth #2: Buying in bulk is always better.
Buying in bulk only makes sense when you are buying household items that you would typically use on a daily basis. It won’t benefit you if you buy something like soda that you only drink once a month. Then it’s just wasting money that you could have used somewhere else and on something that you actually need. If you are going to buy in bulk, buy razors, or bottled water, or other things that you will use up quickly and that won’t sit around in your garage. Don’t be a hoarder.
Myth #3: I am too young to save for retirement.
It is never too early to start planning for your future, even if it is 30+ years down the road. Retirement can be a scary thing and it’s not cheap. If you start saving money for your retirement as soon as you land your first job, you are going to be much better off. Many companies will match a certain percentage of whatever you put in your 401K. This will help maximize the amount of money you are saving for your future.
Myth #4: Cutting back is the solution to all of our problems.
Unfortunately, it is extremely difficult to just rely on cutting back on your spending in order to fix your financial woes. It’s going to take a lot more than that; cutting back is only one step. Sure, not going to that concert you really wanted to go to or not eating out every night is certainly going to help, but in order to really mend those finance problems, you are also going have to figure out a way to make your money grow and earn more. Some say, put the money in an interest bearing account in order to make it grow. If needed, you could also pick up some extra shifts at work.
Myth #5: Credit cards lead to further debt.
Just because you use your credit card it does not mean that you are going to go into a big black hole of debt. Be smart about it. Give yourself a limit on your credit card and do not spend more than what you can pay back on your monthly payments. If you can’t afford to pay back $500 in any given month, then don’t spend it and you won’t have to worry about holding a balance on your card.
Don’t believe every money myth you hear. As it turns out, many of these common myths aren’t true so be careful what you believe. Do your research and figure out if what somebody is telling you about money is actually true.