Tweet

There are plenty of myths of personal finance. People generally try to avoid saving or investment. People basically have many false beliefs regarding this as in the beginning saving or investing is bit difficult but when it comes to routine it becomes very simple and easy.

Renting or Loaning

One should always avoid renting as it is similar to throwing away the money. One should never get things on EMI or interest as paying interest is like wasting the money. For example if you buy a house on loan then you will have to pay some amount as interest and that whole amount is wasted. The rate of interest is quite high. Say if you rent a house then even that amount is wasted or you can say is thrown away.

Good Credit Value

Why should I go for saving or investing when I have a good credit value ? People generally feel that they if they have good credit value they don’t need to have an investment or saving as they can get funds from their credit cards anytime. People should avoid using the credit card. Most of the people think that by the use of credit card their credit value or score will go up but have you ever thought that in case if you fail to deposit the fund then immediately the credit value will decrease.

Extra fund is not needed for saving

People make plenty of excuses in the beginning like I don’t have much extra fund to start with saving & investing process. For investing or saving you need not have to have extra money. One can invest in mutual fund, share trading, LIC etc. One should always start saving or investing with little money so that it become easy as saving is a habit which develops slowly. It should be done on regular basis because that is what is important.

Home Ownership

The best way of investing the money is Home ownership. Investing any where is good but still one should always invest in various other fields. Owning home is definitely must but still some more money must be invested here and there. So that the risk involved is less. If the money is involved in many sources then the amount of risk involved is also less as the balance maintenance is must.

I will save later

People basically say that “I’ll save later when I will get more money.” but such excuses must be avoided if you want to live a healthy life ahead. One must be aware of that they need to take care of their own financial stability now & later. One should try to avoid such lame excuses if they wish to make their future secure.

I am too young for it

People generally feel that I’m young & I don’t need to think about my retirement, saving etc – it’s too early for me to start with retirement, saving & etc. But it’s never too late or early for saving or investment etc. One should always be prepared & plan for their retirement as early as possible so that they are secured. One can start saving at any age hardly matters. Some part of income must be used every month for saving & investment purpose.