Money myths you need to stop believing
THINK you’re clued up about financial matters? According to TopCashback.co.uk, there are some beliefs around money that people could be getting wrong.
But it’s not always just a case of sorting fact from fiction.
Here, Adam Bullock, UK director of TopCashback, debunks four common financial myths...
MYTH 1: Owning a house is always better than renting
FLEXIBILITY is probably the most obvious advantage for renting over owning. In the uncertain economy, not being tied into a fixed mortgage is something that those in pressurised financial positions may appreciate.
Buying a home can pay off financially in the long-term, but if you need to be adaptable and move for work, for example, being tied to the same property for several years may not be ideal.
Being a homeowner also means additional costs, such as buying furniture and repairs.
MYTH 2: Using credit cards is the be all and end all to a good credit rating
YES, showing you are a reliable borrower who can meet their repayments can help your credit score. But if you’re juggling lots of accounts and miss payments, this can be viewed negatively.
Making sure you’re on the electoral roll and your address for your mobile phone contract is up-to-date can also help your standing on credit reports.
MYTH 3: The amount of money you’ll get in returns is all you should consider when choosing where to keep your cash
WITH interest rates so low, it’s hard to make decent returns on savings. But remember to look for other incentives on offer, such as cashback and other switching rewards or monthly benefits.
Some banking apps have features that help you to save, while you can also grow money to set aside into savings by using websites such as TopCashback.
MYTH 4: Investing is only for the rich
INVESTMENTS can be a good way to grow savings long-term, but make sure you understand the risks – you may end up getting less money back than you paid in.
Five years is often the minimum amount of time financial advisers recommend you invest for, and a diverse range of investments can help to alleviate some risks.
For a beginner’s guide to investing go to www.moneyadvice service.org.uk/en/articles/ investing-beginners-guide