4 Investing & Money Myths You Need to Know

 
Investing and Money Myths You Need to KnowToday's generation is born and raised in a technological world, where the digital environment becomes the #1 attraction for almost everything. 

Information? We can find it on the internet. Communication? We can instantly do it through various social media platforms and video chats. Investing? Making money? The web is taking care of that as well!


What the internet does not provide though is often the truth. There’s so much unreliable information that is waiting to be devoured, and so many na├»ve individuals that are soon going to add new, wrong beliefs about health, wealth, investing, or whatever it may be.
 
Investing and money myths are no exception from the rule, and that's regardless of your generation.. So whether you're a millennial (born between mid-1990s to early 2000s) or a classic Tito/Tita who's looking for some insightful money and investing tips, you should always be aware of the world you’re living in. You can never completely trust information online.
 
There is so much misleading information circulating right now that we have felt the need to compile a post that will expose some of the most outrageous myths on investing and money. For the purpose of financial stability and well-being, everyone should immediately get his facts straight once and for all.

You Need a Ton of Cash to Invest
Most people, especially Millennials, have swallowed the common myth that states that in order to be a successful investor, you need to have a lot of money at your disposal. That’s why many potentially great investors throw away their chances before even giving them an attempt. Moreover, a very misleading encouragement is that people should take all their money and put it into one big investment account!

You Need a Ton of Cash to Invest

That could go wrong in so many ways. You may even lose everything due to inconsistent shifts in the economy. Just like it happened in 2008 with the global economic crisis, it could happen tomorrow. You can start small by strategically allocating small amounts of money to your investment plan and by following small investment strategies that actually work.

Investing Will Make You Lose All Your Money
Indeed, investing involves the obvious risk of losing your money. The only problem is that the majority of financial gurus and experts are encouraging the negative consequences more than the potential gains. After all, the concept behind “investing” supposes risk in exchange of potential profit.
So if you can’t stand losing your money over and over again, you should choose another field of activity.

Investing Will Make You Lose All Your Money

However, if you really wish to invest, be confident and very calculated while you do. In order to avoid discouraging outcomes and results, don’t invest without possessing the necessary knowledge.

Investment Advisors are All Trustworthy
If you believe that modern investment advisors that sell themselves well are completely trustworthy and they’re worth your money, you’ve got it wrong. Just observe the paradox here. If an investment guru makes his money by preaching stuff to other people, how good is the information he sells? Why wouldn’t he invest his money following his own guidelines and turn rich? The answer is simple: he can’t because he’s either a fraud or he's more after the commission/referrals.

Investment Advisors are All Trustworthy

A genuine advisor would listen to your problems and goals, analyze your situation and recommend financial strategies that goes beyond the boundaries of the products or services that he or she will earn from.

All Debts are Bad
Not all debts are bad. As it has been repeatedly emphasized with so many books and articles, there are 2 different types of debt: good debt and bad debt. You just have to learn how to distinguish one debt from another.

All Debts are Bad

Think about apartments. The need of accommodation will never go away, and people will always need a place to sleep. If the debt you have to pay monthly or yearly is lower than the passive income you receive from your assets, you’re actually doing it right!

Cheaper is Often Better
Many people believe that spending less money on the things they purchase will help them “save” money. In fact, that’s a big money myth that’s been circulating around the web for quite some years now. This mentality will make you lose more money in the long run, as you will get what you pay for. A cheap car will prove to be extremely expensive over time. A cheap rent will lose you a lot of time and money as you won’t possess all the features and utilities, so you’ll have to get them somewhere else.

Cheaper is Often Better

Those were just a few examples, but you get the idea. When you spend your money on quality products, you can expect them to last for a few years without having to invest in them again and again.

Saving Every Penny Will Make You Rich
If someone told you to put every penny you have aside because that will make you rich, they’ve told you just a small part of the truth. You see, if you put all your money aside and you leave it rest in a bank account, you have no more money to invest. Therefore, the chances of significantly changing your life for the better – in terms of finances – goes to waste.

Saving Every Penny Will Make You Rich

So instead of letting your money “sleep”, put them to “work”. You can get involved in different joint venture, trade, or invest in different companies that you think that’ll become popular in time.

Your Retirement Pension Will Save You If Everything Goes Wrong
There are lots of Millennials who rely on their future retirement pensions, hence the phrase “You Only Live Once” or YOLO. That’s such a wrong thing to do, especially because you never know when the entire economy will collapse. By the time you will retire, there may not even be retirement pensions, so what will you do then? Well, the only chance to have a completely safe financial future is to invest your money as smart as you can, only in the things you can fully control.

Your Retirement Pension Will Save You If Everything Goes Wrong
 
Takeaways
Money and investing are often complicated because they’re made to be so. It takes some effort to understand how the system works. However, once you debunk all the myths that have a direct effect on your financial circumstances will surely improve your quality of life. Always remember to be cautious with every advice, fact, or opinion you come across. “Store” the information, have it there, up for grabs, but never fully believe it. 

Author Bio:
Micheal Gilmore is an entrepreneur and passionate career advisor at ResumesPlanet.com. His mission is helping people achieve perfection in anything they do. His life is fully dedicated to the people. You can catch Micheal on Twitter.

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