Finance is one of the broadest topics that can be discussed. Even so, there are many statements that have been passed around that, despite their reach, couldn't be further from the truth. There exists a bevy of myths about finance, as the likes of Robert Jain can attest, which is why it's in your best interest to read up. For those that would like to learn more about this topic, here are 4 myths that you can start with.
"You should always pay in cash." This may vary based on preference, but cash isn't always the ideal payment method. Reputable names such as Bob Jain can agree, seeing as how there are many credit card options that reward their customers. Everything from frequent flyer miles to cashback can be given based on the card that you use. Cash may be preferred by many, but to say that it's the best option would be an oversight.
"Investing money should only be done by the wealthy." Even though saving money is considerably easier if you have substantial means, those that aren't as fortunate shouldn't be left out in the cold. In fact, investing money for the future is simple. All you have to do is take a set amount, no matter how small, from each paycheck you're given. By doing so, you'll eventually build a separate account that you can use for whatever you see fit.
"It's too early to save for retirement." On the contrary, it's been said that you benefit the most from retirement saving by starting at around age 30. It makes sense, as you're able to put money into your account sooner. Many people assume that their age determines when they should begin saving, which usually isn't the case. The earlier that you begin planning for retirement, the more money that you'll have to use during your golden years.
"I'm already secure, so why do I need an emergency account?" Simply put, you never know what might happen in life. Perhaps you end up leaving your workplace unexpectedly. Maybe a medical emergency arises that requires you to be out of work for during an extended period. The costs will add up, but an emergency account can cover many, if not all, of the costs. It's a simple matter of how you put into this account and, just as importantly, how early you begin saving.
"You should always pay in cash." This may vary based on preference, but cash isn't always the ideal payment method. Reputable names such as Bob Jain can agree, seeing as how there are many credit card options that reward their customers. Everything from frequent flyer miles to cashback can be given based on the card that you use. Cash may be preferred by many, but to say that it's the best option would be an oversight.
"Investing money should only be done by the wealthy." Even though saving money is considerably easier if you have substantial means, those that aren't as fortunate shouldn't be left out in the cold. In fact, investing money for the future is simple. All you have to do is take a set amount, no matter how small, from each paycheck you're given. By doing so, you'll eventually build a separate account that you can use for whatever you see fit.
"It's too early to save for retirement." On the contrary, it's been said that you benefit the most from retirement saving by starting at around age 30. It makes sense, as you're able to put money into your account sooner. Many people assume that their age determines when they should begin saving, which usually isn't the case. The earlier that you begin planning for retirement, the more money that you'll have to use during your golden years.
"I'm already secure, so why do I need an emergency account?" Simply put, you never know what might happen in life. Perhaps you end up leaving your workplace unexpectedly. Maybe a medical emergency arises that requires you to be out of work for during an extended period. The costs will add up, but an emergency account can cover many, if not all, of the costs. It's a simple matter of how you put into this account and, just as importantly, how early you begin saving.