The Internet is a great source of information. However, there is a lot of inaccuracies found online. There are also rumors that have come about because of years and years of hearsay. Believing such myths can be very damaging, especially when it comes to misinformation about finances. With that in mind, read on to discover the bank-breaking financial myths you need to stop believing today.
- You can’t trust financial advisors – Millennials seem to have a distrust for the vast majority of professionals involved in the financial industry. Instead, we turn to our parents for advice. While this is a good thing, there are circumstances whereby only a professional will do, as your family members may not be updated on the latest ways to obtain financial growth. Instead, they probably only know what has worked for them.
- Investing in the stock market is too risky – It is not difficult to see why people believe this myth. When the market crashed in 2008, more than 8 million people lost their jobs and investments dried up. This had a significant impact on people’s’ attitudes toward money and the stock market especially. However, investing in the stock market is one of the greatest ways to grow your savings with inflation. Of course, this is not something you can dive straight into, and you need to ensure you are happy with your level of investment risk at all time.
- Insurance is not necessary – It is so important to insure yourself as early as possible so that you can lock in the best premiums. The trouble is a lot of people see insurance as unnecessary, and there are so many different policies available, so it is hard to know what to invest in. Life insurance and health insurance are undoubtedly two of the most important. If you neglect to carry insurance, you could find that your life is upended and your finances are depleted as a result.
- You don’t have to worry about your retirement when you are young – It is easy to see why you would not consider your retirement during your 20’s. But, the sooner you do so, the better. You will have more years of compound interest ahead of you.
- Carrying a balance on a credit card will improve your rating – In fact, this simply is not the case. If you have a balance and you only pay off the minimum amount every month, you are not proving your credit worthiness. All you are doing is paying the lender more money. Instead, if you want to boost your credit rating and show that you are a responsible person that is worth lending to, you need to pay off the amount in full.
- You don’t have enough money to invest – You don’t need to have a fortune to invest. In fact, thanks to the proliferation of online savings accounts, you can start investing with very little money today. Another option is to open a brokerage account with a small amount funds via an online trading business.