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.
"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.
"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.
"I'm too young to begin saving money for retirement." With this mindset, you'll be less likely to save what you need for a comfortable retirement. The general rule to consider is that the sooner you start saving, the better. For example, if you land a full-time job at age 26, this is when you should begin saving, as you are likely to have the means to do so. By saving early in your life, you will ultimately end up an amount that you can be comfortable living off of.
"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.
"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.
"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.
"I'm too young to begin saving money for retirement." With this mindset, you'll be less likely to save what you need for a comfortable retirement. The general rule to consider is that the sooner you start saving, the better. For example, if you land a full-time job at age 26, this is when you should begin saving, as you are likely to have the means to do so. By saving early in your life, you will ultimately end up an amount that you can be comfortable living off of.
"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.
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Kindly consult Bobby Jain for additional information regarding what you've just read.
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