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.
"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 will never need an emergency fund." You should never make this assumption. Life is unpredictable and it can lead to certain events that may result in you being unable to financially support yourself as well as before. You needn't fear, however, as an emergency fund can help you cover some of the costs that you would have lost otherwise. It would be ideal if you build this account early on so that you have more to use if an emergency were to occur.
"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.
"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 will never need an emergency fund." You should never make this assumption. Life is unpredictable and it can lead to certain events that may result in you being unable to financially support yourself as well as before. You needn't fear, however, as an emergency fund can help you cover some of the costs that you would have lost otherwise. It would be ideal if you build this account early on so that you have more to use if an emergency were to occur.
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