Managing money can be a hard thing to handle, huh? With advice and rules that seem to circulate the world, it can be hard to decide what to hold onto down the road
Some things you may have heard include sticking to your budget, save as early as you can for retirement, and spend fewer dollars than you are making. Now, there is some stellar advice that comes here. But, there are other pieces of advice that you should not listen. Check out the information below.
Renting Is A Waste
Another money myth to ignore is you should not rent. This example could not be further from the truth. Maybe buying a home is not in the cards right now for you. Well, renting is not a short-term option. You will not risk losing money on a property that you cannot afford in the first place.
Do not be ashamed of renting. You can still get a home that you do not need to worry about if something breaks. You will just need to call the landlord to handle the rest. That will save you some serious dough. If a pipe breaks, you do not have to sweat because it will not come out of your bank account.
You can call for help from your landlord and go on with your day. This is the peace of mind that you can have when renting. Sure, you will not make money when you are done with the rent, but most homes at this point are not a sensational investment.
Not Spending Money In Retirement
There are some people out there that say you will not spending money during retirement. Well, this example is a money myth and is some bad financial advice. Some think that they need about 80% of their annual salary before retirement.
However, most people spend even more money when they are retired. When you are not working, you can expect to travel to more places, buy more gifts, etc. Do you have kids and grandkids? You may want to give money here and there for college funds and birthdays more than you ever have before.
Any Debt Sucks
Some may seem to say that any debt is bad. But, this example is not always the case. There is good debt, so do not listen to people saying this bad financial advice. Some debt with a small interest rate can help with building wealth. Think of good debt like college loans and a home mortgage.
Still, bad debt is credit cards with the highest interest rates. You will find yourself in a money hole. Credit cards are dangerous, so never try overextending yourself here. Nevertheless, debt can help with a credit score. Know that the big score comes from the best terms.
Never Talk About Money
Another money myth involves the fallacy that you should never talk about money. Well, to gain wealth, you cannot just do things on your own without talking about it. You hopefully have had a financial advisor. Or maybe you have been talking to your family about financial planning. Generations are impacted positively by conversations about finances.
If you want to retire sooner rather than later, you need to know if you have enough money for the future. There is nothing worse than falling into a situation where a person did not plan enough ahead for retirement. In turn, they run out of money and have to rely on their family. There would be nothing worse than this financially.
A Successful Financial Future
So, this money myth to ignore must leave your head as soon as it comes. Plan on saving and budgeting. Some resources out there could be Dave Ramsey to help you use an application to budget your finances. Also, talk to a financial advisor to help you make smart investments that will put you on top for a successful financial future.