How much do you really know about finance? While you may know to not overspend or use your credit card to extreme lengths, you might have been told supposed facts that, to say the least, don't hold water. Some of these financial myths are more common than others, but it's important to know how they can be debunked all the same. Here are 4 of the common myths that Robert Jain, as well as other names, can debunk.
"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.
"You should only invest your money if you're rich." This is another financial misconception that deserves to be debunked. Even if you aren't making six figures per year, you can still put your money into something you'd like for the future. It's a simple matter of saving up small amounts over the course of time until you have an accountant you can be happy with. Investing money is easy if you have the patience for it.
"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.
"You should only invest your money if you're rich." This is another financial misconception that deserves to be debunked. Even if you aren't making six figures per year, you can still put your money into something you'd like for the future. It's a simple matter of saving up small amounts over the course of time until you have an accountant you can be happy with. Investing money is easy if you have the patience for it.
"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.
About the Author:
Please contact Bobby Jain for additional information regarding what you've just read.. Also published at Robert Jain: The 4 Myths About Finance No One Should Fall For.
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