Know the Facts and Protect Your Finances!
When it comes to money, we are all a little protective. At Elevate Credit Union, we have your back. We can help you sort out fact from fiction. Find out more by reading these 7 money myths you need to stop believing right now. And if you need personal budgeting help, come on in or find out more online here. It is free, and when you succeed, the whole community does!
Myth #1: Debit is always better than credit.
The real deal: Credit cards may actually be the payment method of choice on occasion. First, many credit cards offer rewards in the form of travel miles, cash-back, and other bonuses. Second, building and maintaining a strong credit history is crucial for your financial wellness; using your credit cards and paying your bills on time is the best way to achieve this. Finally, many credit cards offer purchase protection, making them the smarter payment method for big-ticket items.
Myth #2: Buy a home at all costs.
The real deal: For many people, including those not yet ready to put down roots or anticipate a career change that necessitates moving across state lines, renting a home or apartment might be the better choice. It can also be a financially desirable option if you live in a super-expensive area.
Myth #3: Investing is for rich people.
The real deal: Anyone with small funds can get a foothold in the stock market. It is easier than ever to micro-invest. A smart investment strategy puts you on the track to financial independence.
Myth #4: My partner manages our finances, so I don’t need to think about money.
The real deal: While it is okay for one partner to manage the family’s money actively, both partners must be aware of the state of the family finances. They should also be capable of managing household expenses and investments if something happens to their partner.
Myth #5: Credit cards will get me through any financial crisis.
The real deal: Depending on credit cards to get you through a financial emergency is the perfect way to dig into a bottomless pit of debt. Thanks to interest, you’ll pay back more than you spend.
Credit cards should not be the only relief for a real financial emergency, such as a job loss, divorce, or illness. It’s best to build an emergency fund with three to six months’ worth of living expenses so that you’re okay if the unexpected happens.
Myth #6: I’m so young; I don’t need to consider retirement.
The real deal: This is a big one in the money myths department. The younger you are when you start building your retirement fund, the less you’ll be required to put away each month, and the more you’ll save by the time you’re ready to retire. Gift yourself with a comfortable retirement by maxing out your 401K contributions and opening an IRA or another retirement fund. Start today and let compound interest work its magic!
Myth #7 I don’t need a budget
The real deal: Budgeting is for everyone, regardless of financial standing. A budget will force you to make responsible money choices and ensure that you’re always fully aware of your finances.
There are many reasons why people believe the way they do regarding money. Now that you know these 7 money myths, you need to stop believing; you are in the know. Make sure you are money smart with these tips. And if you like this post, check out the MoneySmart Tips blog.
