Do you consider yourself to be somewhat of an expert when it comes to personal finance and money management? But we surveyed several investors and money-smart people and found that there are a few myths about money that can set you down the wrong path if you believe them.As is common with most things, people often do not know what they are missing out about the stuff they just don’t know! And personal finance is no exception to this rule.So, know these major financial misconceptions before they drag you into the dark waters of financial danger, because money does not grow on trees after all.
One can tell a millionaire just by looking at one!
Just because a person seems to be wearing some nice clothes and is driving a nice car, it does not necessarily mean that person is filthy rich. In fact most millionaires revealed that they would rather be anonymously poor rather than be deceptively rich. While swanky cars and well-dressed people are often wealthy, but as the popular saying goes, judging the book by its cover may be a dangerous gamble at times. So, this is some food for thought for those who pitch their ideas by judging the outer appearance of the people, next time you do that, maybe just pause and think for awhile.
It takes money to make money!
This is a popular myth that majority of the people believe in. but that is definitely not the truth. If it were than the most successful and richest people of the world would not have been able to start of their multi-million dollar companies from scratch. All it takes is a wealthy idea to bring actual wealth and the sincere philosophy to add value to the world works best to add value to ones bank account. So, remember that whatever you strive to do in life, money-making should only be second to the actual idea which should create something of worth.
Most millionaires had humble beginnings and started from scratch, this is not an exception to the rule, the reason why they were able to do so, is because money was secondary to them against the idea that stood primary.
To save money, I need to make more money!
This is a ridiculous belief which almost analogous to saying that I cannot start exercising because I am not in a good shape. The people you see in great shape today had actually at some point started running to achieve that and so should you. That means to save more you need to start as early as possible. Even if you are not making as much money as you would like to, but the more you delay saving the slower you will be to utilize the power of compounding and lower you will be in the monetary standpoint.
Money is the root of all evil!
Very commonly heard phrase and also most frequently misused. The actual line written in the bible is not that money is the root of all evil, but the love for money is the root of all evil. So, while money is important for us, make sure you do not start to love money more than your friends, family and peers. With money in the right hands with the right ideas, one can do well for themselves as well hundreds of others, look at Bill gates or Warren buffet or even the Tatas for inspiration.
Owning a home is better than renting!
Probably this myth stems from the all time dream of individuals, which is to grow up, graduate college, get a good job, get married, buy a house and have children. But financially or considering lifestyle needs in point buying a house is not always the right idea. For young earners who have just started out in their career, renting is often a better option than buying one.
Before beginning to invest I must be an expert at investment options!
To those who think this way, I would like to ask how many of you actually started to do things only after you had become an expert in the issue. For instance, did you actually get on a bike after you had become an expert in riding one?
You can begin to invest in options with only some amount of research, planning, observation and prioritizing. So, go on and start that SIP that you have been putting off.
I am alright and do not deserve more money than what I make already!
It is astonishing at how many people in the world site themselves out of being wealthy, because they do not think they deserve to be. You need to believe that you deserve it to actually get those things and must possess ample confidence in yourself to attract them. Know that nobody will hand it to you unless you are ready to take it. Everybody deserves to have a happy and prosperous life. You must believe you deserve it to make others believe it as well.
And finally in closing thoughts you should always maintain an emergency fund for those rainy days instead of relying on credit cards or drying up your savings bank account. For financial planning tips and daily finance news stay tuned to Money Dial.