Save money for a better future, for emergencies, education, to get your home and luxury car, etc. these are some of the reasons why people are bound to save some healthy portion of their salary or earnings. Perhaps, some are necessary, or maybe some are not. There are numerous misconceptions and rumors roaming in the minds of people about money-saving.
Lets us look at the major money saving myths that one needs to avoid for the betterment of their future;-
1) Buy home instead of Rent
It is one of the biggest all-time myths about saving-money. Most people prefer to buy a home rather than to be a tenant. And the most significant part is that buying your own home is an omen of getting settled in your life and off course you are saving your money by investing in property. But the fact is that it is one of the myths about saving money. Living on rent will give more flexibility and options through the capital to chase your dreams. You can explore new destinations and work freely.
2)Invest only if you are rich Certainly, one of the frustrating myths about money-saving!
It doesn’t matter whether you are earning a healthy amount of money or making less because investment and savings are for all people. You can open any recurring in a bank or invest in some bank schemes. So, you will get a vast and healthy capital after some years.
3)Need a credit card for getting a high credit score
We still don’t know who has disseminated this credit card rumor, but this is a bad one for those who want to take some loans from the banks or financial institutions. There is no connection between your credit card and credit score. The only way to improve your credit score is to make sure that you are paying all your dues on time.
4)Don’t have enough to save
As we have discussed in the previous points that for the better saving, you need to make more significant plans and budget. It doesn’t make any sense that I don’t earn a healthy amount of money, so I can’t save. Just try to open an auto-deposit or any insurance policy that will be deducted from the day your salary comes.
5)Having two sources of income is excellent than one
Though it would be the topic of debate because many people prefer two sources of income like husband and wife both are earning, but at the same time, it brings carelessness. And on the other hand, the care of kids also becomes the topic of debate. Similarly, the same applies to betting income from sources like https://www.betrallyindia.com/ along with your regular job.
6)Investment in Gold is perfect
Gone are days when people used to invest their money in gold, because today, people have more options than investing in gold. The rate of gold is just the game of economy. Today, policies like pension are more popular than the latter one. But the sad part is that some people are still following the gold trend.
7)Money-saving work is only my partner’s cup of tea
It is good that you have faith in your partner that she/he will save better or handle it better. Still, it will be right for you in the future if you also are aware of the money related work because the divorce rate is also near about 45 percent in the human marital society. And the divorce rate is not a myth.
8)Cash is always a better option
Some people believe that getting loans and purchasing something on credit card will make their life entangle financial complications. But this is not true at all. Bank loans and credit cards will give you fantastic purchasing offers and protections with additional insurance to several things. And nowadays, paying on cash will not provide any extra benefits to purchasing.
9)Saving accounts is the best option for emergency funds
Though many people will not be on our side, the fact is that keeping an account is an excellent option for emergencies. But you can’t be able to use your money in a financial crisis instantly due to the bank policies and you will not also receive some high-interest rates on your money too.
10)Credit card is enough for me instead of emergency funds
A credit card is a good idea, but in case you lose your job, then it would take an average of 4 months to find a new job. And in this period, your emergency funds will help you more.
Saving money is essential, but we need to choose the right path or way of saving. So, these are the major myths about money-saving. So, try to choose the right way and avoid these myths for living a better life.