The internet has done wonders for increasing people’s financial knowledge, through various different forums and message boards you can find and contribute to. But it has also been a major catalyst in the spreading of financial misinformation all over the place. Rumors travel fast over the internet, and many of them have led to millions of people believing financial myths that are simply not true. This blog post is going to look at a few common financial myths and explain why they aren’t always 100% true.
All Payday Loans are Bad
For some reason, many people are under the belief that payday loans are a bad thing. A payday loan is a short term, unsecured loan that is offered for a relatively small amount of money when compared to other types of personal loans. They are often used to help people have enough money to cover expenses until their next paycheck arrives.
Sure, there are some predatory payday loans out there, but there are also various other types of predatory loans too, so there is no logic behind the thought that payday loans are bad. The loan itself isn’t bad at all and as long as you do your research and find a solid lender who is capable of fair payday loans, they can be a great option for a short-term loan if you need it.
Buying is Better Than Renting
This is one that almost everyone has heard at least once. Many people love to say that renting is simply throwing money away. However, this is obviously not the case. The rental prices vs. the buying prices differ from place to place. Plus, with buying, you also have other costs such as property taxes, maintenance and more to worry about and cover. When you rent, you are paying for the roof above your head, so it isn’t throwing money away at all.
Plus, if you are not sure where you are going to be in a few years, it doesn’t make sense to have to buy a home and then go and sell it next year or the year after. Sure, buying definitely makes sense for some people in some situations, but to say it is always a better option than renting simply isn’t an accurate statement to make at all.
You Need a Lot of Money to Start Investing
In addition to saving money, investing your money is one of the most important things you can do to become financially successful and healthy. While saving is something that pretty much everyone does, only around half of America actually invests their money in the stock market. Now, this includes everything from individual stocks, to mutual funds and everything in between.
Many don’t invest because they think that they need a lot of money to start, but that isn’t the case. While some brokerage firms do have a minimum amount you need before you start investing, many other banks and financial institutions allow you to invest as little or as much as you want. Of course, you need to research and do your homework on investing before you ever put any money in the market. Also, be mindful of the fees you might incur, as well as the place yu invest, as fees will differ between providers, sometimes by a lot.
Hopefully this article has helped to dispel some financial myths that you yourself might have still believed. Financial myths often keep people from doing or trying something that could be beneficial for them, so always do your research on something before simply writing it off as something that is bad for you.
Rachel Slifka is a freelance writer and human resources professional. She is passionate about helping fellow millennials find success with their finances and careers. Read more by checking out her website at RachelSlifka.com.