Personal finance myths busted
Wyou first start earning money, you must have various dreams to fulfil. It is okay to think, “Let me first do and buy whatever I want since my childhood,” but adding, “It’s not my age to do personal financial management,” is merely a myth that needs to be busted today.
Here are personal finance myths and the reality thereof follows:
Myth - Retirement is for people aged above 60: Because of government employees since the beginning, retirement is considered as the age instead of financial planning. However, retirement simply means when you are looking forward to working actively to earn your survival. Age is just a factor; for some people, the retirement age can be 35, and they restart their whole life after the same age.
Myth - Investing is for rich people: If you think investing is only for rich people, you might live in the dark. You can start investing with just R20 per month, depending on the type of securities you are planning to invest in. The amount required for the purpose of investing is part of the myth that needs to be busted, as because of the same, you might not even attempt to look at investing.
Myth- Insurance is a waste of money: ‘What’s the point of having health insurance? What if I didn’t fall ill?’
But, have you ever thought of a scenario of COVID-19 itself? A lot of people got themselves covered by health insurance and got sufficient health treatment required at that time without having to think about money a lot.
Health insurance is merely for giving you the right treatment whenever you need it. It is good not to fall ill, but buying helmets while riding a bike doesn’t mean helmets are a waste of money because you didn’t meet with an accident.
Myth - Savings means saving bank account: Parking money in a savings bank account is totally different from saving money for your future. Your bank account is a viable option only for emergency saving, not for fulfilling other financial objectives like buying a dream house, retirement planning or children’s education.
You do not have to be an economist to manage your personal finances, but at least you can take a step ahead by knowing the reality behind the myths that you have in your mind. Having the right mindset toward finance is the key to personal financial success.