How much do you really know about finance? While you may know to not overspend or use your credit card to extreme lengths, you might have been told supposed facts that, to say the least, don't hold water. Some of these financial myths are more common than others, but it's important to know how they can be debunked all the same. Here are 4 of the common myths that Robert Jain, as well as other names, can debunk.
"When making a purchase, always use cash." If you think that cash is the way to go for every purchase, you'd be mistaken. As a matter of fact, many people only use it for emergencies. It can be argued that certain credit cards are better, particularly those that offer rewards over the course of time. You'd be amazed by the number of frequent flyer miles people rack up over the years. This is just one example that names like Bob Jain can tell you about.
"Investing money should only be done by the wealthy." Even though saving money is considerably easier if you have substantial means, those that aren't as fortunate shouldn't be left out in the cold. In fact, investing money for the future is simple. All you have to do is take a set amount, no matter how small, from each paycheck you're given. By doing so, you'll eventually build a separate account that you can use for whatever you see fit.
"I don't have to save for retirement so soon." This is yet another myth that light should be shed on. Believe it or not, it's not unfathomable for someone to begin retirement saving during their mid-20s. While this may seem extreme at first, it should be noted that this will allow the individual to build their account sooner. This doesn't even begin to detail the increased amount that they stand to save, which only makes the idea of early saving that much more appealing.
"I will never need an emergency fund." You should never make this assumption. Life is unpredictable and it can lead to certain events that may result in you being unable to financially support yourself as well as before. You needn't fear, however, as an emergency fund can help you cover some of the costs that you would have lost otherwise. It would be ideal if you build this account early on so that you have more to use if an emergency were to occur.
"When making a purchase, always use cash." If you think that cash is the way to go for every purchase, you'd be mistaken. As a matter of fact, many people only use it for emergencies. It can be argued that certain credit cards are better, particularly those that offer rewards over the course of time. You'd be amazed by the number of frequent flyer miles people rack up over the years. This is just one example that names like Bob Jain can tell you about.
"Investing money should only be done by the wealthy." Even though saving money is considerably easier if you have substantial means, those that aren't as fortunate shouldn't be left out in the cold. In fact, investing money for the future is simple. All you have to do is take a set amount, no matter how small, from each paycheck you're given. By doing so, you'll eventually build a separate account that you can use for whatever you see fit.
"I don't have to save for retirement so soon." This is yet another myth that light should be shed on. Believe it or not, it's not unfathomable for someone to begin retirement saving during their mid-20s. While this may seem extreme at first, it should be noted that this will allow the individual to build their account sooner. This doesn't even begin to detail the increased amount that they stand to save, which only makes the idea of early saving that much more appealing.
"I will never need an emergency fund." You should never make this assumption. Life is unpredictable and it can lead to certain events that may result in you being unable to financially support yourself as well as before. You needn't fear, however, as an emergency fund can help you cover some of the costs that you would have lost otherwise. It would be ideal if you build this account early on so that you have more to use if an emergency were to occur.
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