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