Maybe not everything is as you had been told and when it comes to finances. It is best to investigate, take risks and see results before just relying on other people’s experiences. In relation to this, in recent years there have been a lot of financial myths of which it is best to become ” deaf ears
Because of that, and because we need to eliminate that disinformation veil from your sight. We will bring you 7 of these great myths that may have deceived you and that are holding back your financial growth. Raise awareness to new generations about this type of fallacies that have no foundation and thus. You will generate a positive change in your financial education. Pay a lot of attention!
1. Never use credit cards, they are bad!
Of the most infamous deceptions in the world of finance, perhaps this is the one that has had the greatest impact on society. That’s why he leads our list; And how many of you have not been told that using the credit card is “bad”? The reality is that with
So do not be afraid of those interest rates, since these are not really the problem. What can give you a couple of headaches is to use it without control, or without planning to make the payments. Keep in mind that it is not recommended to apply for credits whose fees exceed 30% of your monthly income. It’s a fatal mistake!
In addition, a huge advantage that you may not have taken into account is that, through this small plastic, your credit history will improve. And, as if that were not enough, banks offer discounts and promotions to their most “loyal” customers. On the other hand, if you are someone who loves to travel, having a credit card can translate into obtaining discounts and travel insurance that will get you out of trouble.
2. You risk too much by investing
This well-known myth in society has kept a large number of young people away from the finances. Investing should stop being seen as something extremely risky. And it is that, the level of preparation of the person in the field where you want to do it, has enough repercussion the levels of success obtained. It is not about throwing money away and waiting for it to “grow” alone! It is more a question of analysis.
Also, remember that everything you want to get quickly is risky as in love relationships “What easy comes, easy goes.” This same philosophy can be applied at the moment of investing; with the only difference that if you estimate with very planned calculations, the level of risk can go down.
And finally, it is also important to note that there are safe investments (which usually take time) but they are worth it. It is a question to ask yourself the question: How much are you willing to invest?
In fact, moving to the world of investments from an early age thinking of a long-term ROI is a very good way to ensure extra income in old age. The worst is that the myth has been inoculated very deeply into the Millennial generation!
3. Ask for loans from friends or acquaintances – never the bank!
This is a myth that you must eliminate from your head, and that ultimately can bring financial and family problems. The fact of requesting a loan from known people may be apparently advantageous. But only if the amount of the amount is low. In such a way that it can be paid in the short term; and we mean not to wait more than 3
If you require a higher amount, you can request it from financial institutions, or cooperatives (analyzing which of them offers a lower interest rate). If you do not have the ability to pay, it is best not to borrow. Because you could put your credit history at stake and damage relationships of friendship or family forever.
The only advantage that could be mentioned of asking for loans to acquaintances, is that you probably will not be imposed a specific time for installments to pay. But in the same way, if you are not strict, you will only generate problems!
4. You can not save while going through a period of debt
We know that at some point in your life you may have heard this myth. Having debts does not necessarily mean you can not save. Although it sounds rather rough to think; A recent study has shown that it is possible to use small savings techniques, even going through periods where you feel “up to the neck” of debit balance.
We know that you probably think that whenever you have an amount of capital. Your only objective will be to pay the installments of your credit or loan.
The reality is that it is possible to save; but how? It will not be necessary to strictly apply the rule to save 10% or 15% of your income. You can save minimum amounts on a weekly basis. So that they solve any emergency that comes your way.
5. It takes a lot of mathematical knowledge to bring good finances
The mathematics used in finance is basic, and necessary; It can not be denied because the numbers are in every corner of life. However it will not be necessary to be a calculation scholar to have a good financial management. What it will be necessary is that you have the clear meaning of interests, assets, types of investment, loans and know the value that a good can take over time (thus you will have greater possibility of generating investment income).
6. The acquisition of real estate is a waste of time
The idea of buying a property or house has been in this generation disappearing and has spread a myth in which it is indicated to be ” a waste of time .” When you get a property you never make a purchase in vain. Grants benefits when you want to start a business (mortgaging the property) or have a greater chance of obtaining a Visa.
There are many advantages to buying a property, including the fact that they are revalued. So they are usually a safe investment (and as you should know with a long-term ROI). Perhaps the myth is based on the fact of the procedures or requirements involved in carrying out the process. And, you must also analyze the current circumstances of the country where you reside to buy if it is worth or not.
7. Using cash is advantageous
Our last myth, but that has been believed during this last decade is about cash. Its use ceased to be the trend for a long time and it is no longer totally reliable.
In fact it could mean a high risk to have all your savings in cash. The evolution of money has generated new and attractive options that have many more advantages: electronic cards, payments through digital platforms, and especially the use of credit.
The use of cash if it generates its advantages, it is “at the moment”, it is widely accepted (in fact in any commercial establishment) and, it does not delay in transactions. However, with other payment methods, you can opt for discounts, affiliation plans, obtaining points and more.