If you'd like to discuss finance, there are many topics that are worth sinking your teeth into. One of the most interesting, perhaps, is the topic about myths and the ones that are still trusted as fact. If your goal is to save money, falling for these myths is the worst thing that you can do. Fortunately, there is still plenty of accurate information that can keep you from falling from mistruths. Here are 4 myths regarding finance that the likes of Robert Jain can shed light on.
"Cash is always the best decision." This isn't always the case, especially if you know which credit cards are available. Many of them offer benefits that encourage people to continue using them. Cashback is one of the shining examples, but there are others that names like Bob Jain can tell you about. It's important to carry cash in case of emergencies, such as a credit card being declined, but it's far from the ideal payment method.
"Only those that are wealthy can invest." While having a sizable bank account certainly helps, it's not a requirement for investing money. In fact, it's entirely possible to take a small amount from your weekly or biweekly paycheck, placing it in a separate account for the future. While it may take time to build, you'll be amazed by what you've accumulated by the end. Don't assume that investing is only limited to the wealthy.
"I don't have to save for retirement so soon." This is yet another myth that light should be shed on. Believe it or not, it's not unfathomable for someone to begin retirement saving during their mid-20s. While this may seem extreme at first, it should be noted that this will allow the individual to build their account sooner. This doesn't even begin to detail the increased amount that they stand to save, which only makes the idea of early saving that much more appealing.
"Since I'm financially secure, an emergency fund is unnecessary." You should think again, as emergencies can occur at any moment. For instance, if you work a physically-taxing job and you pull a muscle in your shoulder, you're going to need time to rehab the injury. An emergency fund may help you cover certain costs. Furthermore, you won't be entirely out of luck if you're out of the workplace for an extended length of time. "Better safe than sorry" is a term that's made for this type of fund.
"Cash is always the best decision." This isn't always the case, especially if you know which credit cards are available. Many of them offer benefits that encourage people to continue using them. Cashback is one of the shining examples, but there are others that names like Bob Jain can tell you about. It's important to carry cash in case of emergencies, such as a credit card being declined, but it's far from the ideal payment method.
"Only those that are wealthy can invest." While having a sizable bank account certainly helps, it's not a requirement for investing money. In fact, it's entirely possible to take a small amount from your weekly or biweekly paycheck, placing it in a separate account for the future. While it may take time to build, you'll be amazed by what you've accumulated by the end. Don't assume that investing is only limited to the wealthy.
"I don't have to save for retirement so soon." This is yet another myth that light should be shed on. Believe it or not, it's not unfathomable for someone to begin retirement saving during their mid-20s. While this may seem extreme at first, it should be noted that this will allow the individual to build their account sooner. This doesn't even begin to detail the increased amount that they stand to save, which only makes the idea of early saving that much more appealing.
"Since I'm financially secure, an emergency fund is unnecessary." You should think again, as emergencies can occur at any moment. For instance, if you work a physically-taxing job and you pull a muscle in your shoulder, you're going to need time to rehab the injury. An emergency fund may help you cover certain costs. Furthermore, you won't be entirely out of luck if you're out of the workplace for an extended length of time. "Better safe than sorry" is a term that's made for this type of fund.
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