20 Myths about Finance

Before the start of the economic rout, relying on some iron laws of finance is very easy. However, things have ghastly changed over time and together with these changes are the changes in the laws themselves. There are times when it is very easy to get caught up in some financial tips that are already outdated and before you know it, these can already do you more harm than good. To set things straight and to save yourself from falling to prey into those things that you shouldn’t be thinking about anymore, here are the top 20 myths that you can now just leave behind.

1. You need to be rich so that you can start investing. The reality? Anyone, and that includes you, can actually start investing as early as today to grow your wealth.
2. You need lots of money for you to start your own business. The reality? There are now lots of tools that you can use to earn money with no need for you to have a large capital at all.
3. It’s better to buy a home than to rent on. The truth is it is better to rent if you are young and are just starting with your career.
4. Cash is always king. But while it is better to use your cash to pay for things, there are times when it is wise to use a credit card for protection purposes.
5. It is not good to invest in life insurance. This is a myth for the obvious reason because it is a good example of putting money away today for having more later on.
6. When you have credit cards, you really don’t need to have an emergency fund. However, having some money aside for emergencies can help you cope with the most unexpected situations.
7. You can get the best rate for your loan when you have a near perfect credit score.
8. You can increase your credit score by carrying a small balance in your credit card.
9. You should invest in gold, especially when the economy is experiencing a big downturn.
10. Somewhere out there, you can always find a hot market.
11. It is a good idea to place your emergency fund in your savings account.
12. When your partner is the one managing your money, you shouldn’t worry a bit about it.
13. Real estate has a different behavior from that of other forms of investments.
14. The foreign creditors can actually drain the United States Treasury overnight.
15. There is no way that you can save when you don’t earn enough.
16. The reliable dividend payers are much safer compared to the other stocks.
17. Having two incomes is always better than one.
18. The downturn in the economy will doom the dollar to complete irrelevance.
19. It is important that you diversity your stock portfolio through investing in style.
20. Mass layoffs can reward only the investors.

These are some of the biggest myths in finance that must now be forgotten.

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