TOP 5 MONEY MYTHS DEBUNKED

 

TOP 5 MONEY MYTHS DEBUNKED

"Myths are a waste of time. They prevent progression"

This striking quote by Barbra Streisand describes the current situation of the majority of people. 

Here are five common money myths that have been preventing progression among people for a long time. 

• Saving makes you rich 

A common misconception several people believe in is that saving alone has the power to make them rich. Although the practice helps one balance their household budget and prevents them from mindless spending, thinking that it will be enough to live without working is not true.

• Investing in the stock market is like gambling

Unlike gambling, the stock market doesn't depend on luck and chance to win money. Instead, it serves as a platform for investors to make money by buying and selling stocks. With adequate research and analysis, one can decide to buy a particular company's stocks and lower the risk of losing money. Gambling does not allow for such decision-making. 

• We work only for money

Most of the people who work, work only for one thing - money. Their only motivating factor is cash. Our work helps us in developing several skill sets which no book can. Only chasing behind money makes us overlook the other skills which we can develop. Thus we should not work only for money.

• Buying Is Better than Renting 

We often hear our elders say that one should buy a house as soon as possible to be 'independent'. The sad news is that this is a bad financial advice. In most cases, one should actually consider renting a house instead of buying one. Living on rent is usually cheaper than buying. It also frees a person from the various headaches that come with buying, such as maintenance and repair bills, taxes, etc. For people who are constantly on the go, renting is the way!

• Your House is an Asset

This brings us to the last and a very commonly believed myth- Your House is an Asset. The reality, however is that the house you live in is NOT an asset and is more of a liability. The reason is that it takes money out of your pocket. Repairs, Renovations, Bills, Taxes and other things constantly flow the cash-out. So, until you decide to sell, the house will take money from you month after month.