Common money myths you must stop believing

Money is the driving force of our life, and it is important to stay clear of the various myths about money around us. Read on to know more.

All of us are given advises by our friends, well-wishers and peers regarding our finances. Though most of the advice are well intended but can be misleading. As millennials, we are surrounded by many money myths that we believe are true but often leads to financial stress than benefit.

  1. Buy a home, renting is foolishness
Many of millennials are in a rush to achieve all the life goals by the time they are thirty. Well, it is good to be ambitious, but buying home with loads of loans would not give you stability from the financial point of view. Instead, you would be more stressed for the repayment of loans. So, buy only when you have saved enough to comfortably pay off the loan.
  1. Have credit card balance which could increase your credit score
That is the worst kind of misconception you can come across. There is no way you can have a good credit score if you don’t pay your bills. There are many other ways to improve your credit score. Do a thorough study to know them. But this credit balance is a strict no-no.
  1. Became rich first, then only can I invest
You must have heard it from many people that they can’t invest; they are not rich enough. This is probably the worst kind of financial misconception probably most of us harbour. The truth is, the best way to make your money grow is to invest. It does not matter that you are investing lakhs of rupees or a few hundred.
  1. Buy lots of Gold
Again, this is an outdated and redundant way of investing money. Like a house, Gold is dead money. If you invest in Gold, your money won’t be giving any returns. It is best to invest money in better ways that can make your money grow. Also, Gold is highly volatile; you can even go for a loss if you invest vast on Gold.
  1. There is no need for an emergency fund
Well, whosoever said that does not know that life is very unpredictable. And as they say, make hay while the sun shines, have an emergency fund somewhere. God forbid if you lose your high paying job tomorrow, how are you going to manage your life? The bills, the rent, your children tuition fees?

So, get the truth behind these financial misconceptions. Plan your money wisely.