Don’t Believe These Finance Myths!

Let’s face it; finances can be incredibly complicated. Money is the thing that most of us spend the vast majority of our time thinking and worrying about, and yet many people still don’t fully know how well to take care it. One of the most common reasons that this happens is because many people have simply been given terrible and incorrect advice. There is so much bad financial advice floating around that it’s a wonder that we haven’t all gone bankrupt! Of course, if you do end up following bad financial advice, the consequences can be everything from a minor inconvenience, to serious financial danger. In order to prevent any of these things from happening, here are some financial myths that you need to stop believing right now!

You should never rent

This is perhaps one of the most common pieces of financial “advice” that you’re ever likely to hear. We’re all taught that renting is a total waste of time and money and that you should only ever focus on being able to buy your home. The truth is that there’s a lot of validity to that claim. Rent is almost always more expensive than the monthly repayments on a mortgage, you won’t come away with any equity, and you’re always at the mercy of your landlord. All of these things are totally valid criticisms of renting. But here’s the thing: also renting serves an incredibly important purpose for a lot of people. It allows them to live independently when they’re not yet in a position to buy a house themselves. Sure, most of us would rather buy but renting is a great option when that’s not possible. Not only that but it also allows you a great deal more freedom to move around than you would have if you bought a house.

Debt is inescapable

Debt is one of the scariest words in the world for a lot of people, and it’s pretty easy to see why. The idea of being in a position where you’re paying out a chunk of your paycheck every month to someone else just to pay off money that you owe is incredibly scary. And a lot of people would have you believe that the moment you end up in debt, you’re doomed forever. This simply isn’t true. The reality is that getting out of debt can be a serious challenge; there’s no doubt about that. But just because something is difficult doesn’t mean that it’s impossible. There are plenty of ways that you can deal with debt from reducing your non-essential spending to downsizing your living situation; the important thing is to be sensible and careful with your money, even after it’s all paid off.

Saving is impossible 

If you mention saving to a lot of people, especially younger people, they will often tell you that they would love to save money but that they simply can’t. This is often because they’ve been told that they can’t save money because they don’t have a huge amount leftover at the end of each month. And sure, being able to put hundreds into your savings account every month would be nice but even if you only have a tiny amount of money leftover, setting that aside can make a big difference. Even the smallest amount of money can start to add up over time if you just leave it alone. Sure, that means that it’s going to take a long time to be able to save for anything specific, but if you’re patient, then it will almost certainly be worth it.

You shouldn’t ever treat yourself

The cost of living is high these days, there’s no doubt about that. Not only that but many people’s wages are stagnating to the point where it’s getting more and more expensive just to get by in the modern world. Because of this, a lot of people end up acting as though spending any money on yourself for any reason is somehow immoral or wrong. The truth is that, when the weight of the world is on your shoulders, sometimes it’s okay to treat yourself to something nice. Sure, you don’t want to go overboard to the point where you’re not able to afford necessities like food and shelter. But something nice like a treat for your family or something simple for yourself can help you to forget the troubles that you’re dealing with, and there’s absolutely nothing wrong with that.

There’s no help out there

Far too often, modern society is built around the idea of the “self-made man.” This idea is totally ridiculous. No human being is self-made. We’re all products of our environments, and all of our successes are just as much off the backs of those around us as anything else. But because of this attitude, a lot of people end up feeling as though, if they don’t take care of their finances alone, they’re somehow weak. The truth is that there is nothing wrong with wanting to reach out to others for some help with your finances. Human beings are always stronger together, and if you need a helping hand with your finances, then there’s nothing wrong with that.

One of the best ways to know whether or not a piece of financial advice is correct or not is simply to think about it and ask yourself if it makes any real sense. We’re often taught that it’s better just to listen to what other people say when it comes to money, but a lot of the time common sense is all you really need. Are you spending more money than you have? Then your finances are going to suffer. Can you put aside a tiny amount of money each month? Then over time, that amount will grow. These might sound like the most obvious things in the world, but you really would be surprised at just how often people end up forgetting about simple common sense when they’re surrounded by huge amounts of financial jargon, fear, and bad advice.