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5 common personal finance myths busted!

Personal Finance is still an unfamiliar area for many and these myths can easily harm your finances.

A couple shocked when examining their personal finances.

An easy way to achieve financial independence is learning the subject of Personal Finance so that you make wise financial choices. Your financial decisions can make or break you.

So it is best to avoid these personal finance myths and make the right choices for you and your loved ones. Here are the 5 common personal finance myths -

  • Myth - One needs to be rich to make investments. Fact - One doesn't have to be wealthy to invest. You can start investing small amounts that you are comfortable with. Invest them consistently over the long run and build a diversified portfolio to grow your wealth.

  • Myth - Credit cards are bad for your finances. Fact - Credit cards aren't your enemy, credit card debt is. Credit cards offer convenience, security, and rewards from cashback to travel points. Similarly, loans can also be very useful when used in the right way.

A personal finance expenses bill laid out near some money and a calculator.
  • Myth - You need to start budgeting to save money. Fact - Budgeting can be quite effective in meeting your savings goals but isn't absolutely required. If you can spend and save your money wisely, you can get away without having a budget.

  • Myth - You can save for retirement later. Fact - Many don't make retirement savings a financial priority because retirement seems like such a distant concept. However, it's never too early to start saving for retirement as you have a longer period of time for your assets to appreciate in value.

  • Myth - Your emergency fund should cover a minimum of 3 to 6 months of expenses. Fact - This rule may not apply to everyone. In reality, everyone's situation is different and life is unpredictable too. You may need less or more amount of money stashed away in your emergency fund to meet those unexpected expenses.

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The Ultimate Guide To Getting Your Finances Back On Track is a book that aims to help users in being smarter about their finances. This guide contains seven sections - Financial Goals, Expenses, Savings, Income, Loans & Debts, Budgeting, and Investments. Each of these sections explains everything you need to know about Personal Finance in simple terms. By the end of this book, you will have learned the fundamental principles that will help you in maximizing your income, decreasing your expenses, and increasing your savings that will overall kickstart your process of truly building wealth.

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1 Comment

Michelle Rose Gast
Michelle Rose Gast
Nov 16, 2021

Great post. I like how you say credit cards aren't the enemy, credit card debt is. It helps build credit. We just paid all our credit cards off.


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