It is easy to fall prey to lies and misconceptions, especially when they are parroted around by everyone with the confidence of a raging bull. Instead of helping one make better financial decisions, these lies can often pull you down.
To help you stay safe and make better financial decisions, we at Team KyePot are busting some myths and financial lies you shouldn’t believe in.
Credit cards are bad for you
Yes, using a credit card can turn bad, but that is only if you don’t use it wisely. The reasons to use credit cards wisely can vary from not having the money at hand to cover urgent expenses to taking advantage of the offers and reward points. Credit cards are also a great option to use for safe payments and to build and maintain a good credit history.
You need a lot of money to start investing
Many people lose on great opportunities because they believe in this lie. There are ample number of financial options available which allow you to start with small amounts for investments. For instance, you can start investing with KyePot’s digital chits for as little as Rs.1,000/month. This will allow you to build a saving, get access to larger borrowing amounts, and earn healthy monthly dividends.
You can save money by buying cheaper products
Buying cheaper products will not always save you money. Because cheap products are not built to last long and you may end up paying more to repair or buy a replacement. So why spend repeatedly instead of buying a quality product that will serve you better in the longer run! Being frugal doesn’t mean you should opt for the cheapest product, but instead to spend wisely.
By X age you need to have a Y net worth
There is no rule of thumb regarding net worth that applies to all individuals. Your net worth doesn’t really define your future as there isn’t an ideal net worth and it can differ from individual to individual. You can calculate your net worth to find out your current financial standing and use that as a base to achieve your financial goals.
Don’t save/invest while you’re paying off your debt
On the contrary, saving and investing your money in different investment avenues can reap you returns which in turn can help pay off the debt. As mentioned above you will need all your resources to pay off the debt. Hence, saving some money from your income and investing it in options that provide you access to larger amounts, like digital saving and borrowing groups can help you more than just sacrificing your income.
Budgeting is only for people who are tight on money
Budgeting is an important aspect of financial management and it is necessary for everyone. Maintaining a budget helps to save and you can do a lot with your savings. Even if you are not tight on money and can splurge, you want to keep a monthly budget for better financial security. If you don’t budget your income then you are not maximizing the potential of your money.
We all fall prey to many financial lies and may have even lost a ton of money following some. Always be careful with your financial decisions and take the help of a good financial planner or portfolio manager to help you with your money decisions.