Biggest financial myths

Financial Myths

The entire finance industry is filled with a lot of myths. We are not sure whether they are just myths or the marketing strategies of some brilliant minds in this world. It is very saddening to know that the predominant population is believing in a lot of unwanted things. If you look at the core and do a deep analysis, there will be only a few people who will be benefiting out of it. In this article, we will see in detail the biggest myths in the finance sector.

Buying is better than renting

More than anyone, the real estate industry is gaining a lot of benefit because of this. Most of us have come to a point where we have started to think that buying a house is better than renting a house.  But the truth is that renting is a better idea. Especially if you are renting an apartment. It is because they are depreciating assets, and hence, it is better not to invest a lot of money into that.

You have to be rich to be invest

This is another myth that people are still believing in. Most of the richest people in this world right now started out with nothing. There good possibilities that you can also make a considerable amount of money with small investments. No matter how small the investments are, if done right, it will fetch you appropriate benefits.

Carrying a small credit balance

small credit balance

There are good possibilities that some you might have heard this. Carrying a small credit balance will increase the credit score. This is definitely one of the dumbest myths. The only way to maintain a good credit score is to pay the credit card bills regularly without any balance. You need to be a financial expert to know this. All it takes is some common sense.

I don’t earn enough to save

This is one of the common statements that many people say. It is the truth only to a very less percentage of people. The majority of people are earning enough to save a certain percentage. The truth is that they get into some unwanted expenses and which is restricting them to allot something to their saving.

The gold investment

The predominant population believes that gold is one of the best things to invest in. The bitter truth is that gold is a volatile commodity, and the truth is that it is three times more volatile than the stock markets. So if you have already stocked up a lot of gold, be careful. Anything can happen at any time.

Using credit cards for emergency

People need to understand the fact that the emergency funds are used in the time of emergency when you are out of cash. Which means you are totally out of any form of cash. In this situation borrowing from friends is fine, using a credit card in the dumbest thing. Many people use a credit card instead of emergency funds.

No Credit Check Loans

The majority of people throughout their life time will take out a loan for one reason or another. Reasons can vary from weddings and cars to even just a simple payday loan. However, regardless of the reason the same credit checks will need to be carried out on any individual that is applying for a loan. All lenders simply have to carry out a credit check in order to assess the affordability of an individual before they allow them to take out a loan. No credit check loans simply do not exist.