The Top 5 Money Myths You Keep Believing

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It was love at first sight.

You felt mesmerized as he promised to provide for you, travel with you, and help you through every difficult situation in life.

It sounded too good to be true.

You feel your heart pump faster and you slowly look up to smile at the man standing in front of you. With out thinking, you reach forward to sign your name on the dotted line…

No, we aren’t talking about you and your lover…

We’re talking about signing up for credit cards.

Owning a credit card is one very common money myth – and there are plenty more myths that everyday people continue to fall for!

Get ready, because in this article we are going to debunk 5 of the most common myths!

Myth #5. A House is A Good Investment

Fact: There are much better ways to utilize a purchased home to earn income.

If you’re already in debt, adding $350,000 to your pile isn’t going to help you out. This is particularly important to consider if you are a millennial – buying or building a new home while you are young can come with significant financial consequences due to the lack of savings you’ll be able to accumulate and invest for the future.

Instead, consider looking into one of the following alternative options!

The Least Amount of Work: Rent instead of buy. Renting a home while you are diligently working toward financial freedom may be a great option, especially if you are young or have no children yet.
Uncomfortable but Smart: Rent out a guest bedroom/space in your primary residence
Genius: House Hacking: Buy a multifamily property and live on-site.

Be sure to check out our popular article how to boost your credit for when you look into buy a property!

Myth #4. Leasing a Car is the Cheaper Alternative

Fact: Buying a used car and paying it off before selling can be much cheaper in the long run.

The idea sounds great: lease a car and you can drive around in a fancier, newer car!

However, having a lower monthly payment does not necessarily mean you can afford it!

The insurance rates on a leased car are much higher than on a car you buy, and unfortunately when you lease, you still have to make maintenance repairs on it. You will never own the car and you will never be able to stop making monthly payments.

If you lose a job, you’ll still have to make payments. But if you owned a paid-off car, this wouldn’t be a worry. Or, if you owned, you could sell your car due to having equity in the vehicle.

Myth #3. You Have to Be Rich to Invest

Fact: The younger you are when you build your retirement fund, the less you’ll need to save over the years.

Anyone with a small amount of money can begin investing! Especially if you’re young and have little amount of funds, you can begin micro investing to begin your retirement fund and learn while you’re at it!

Below are three of my favorite ways that are free or extremely cheap to begin investing – for beginners!

Option 1: Robinhood

Robinhood has grown to be a leader in mobile investing, with a simplified layout and countless happy users. The app is free and with our link below you can get a free stock in order to watch it grow and learn about the stock market!

It is a perfect place to start for it is easy to use, beginner friendly, and FREE. What’s not to love?

PRO: Free stock, ability to learn and watch the stock market without any investment

Get your FREE stock here!

Option 2: Acorns

This app has become a new favorite! Acorns, makes the “saving and investing” process 10x simpler than any other option out there.

At the cost of $1/month, it’s a simplified way to save and invest money, with the minimum of $5 to invest. Their “Round Up” tool allows you to save cash without even thinking about it – then, you can easily invest $5 or more in fractional shares within the same app!

PRO: Free $10, extremely easy way to save money and learn to invest for beginners

Get your FREE $10 here!

3. Stash

One of the most revolutionary apps out there is Stash, and it’s quickly proving itself to be a top contender for investing apps!

Unlike the other two apps, Stash gives the option to invest in not only stocks but also ETFs and bonds. It’s also an innovative option with the opportunity to invest in fractional shares, but gives you even more options to invest than the other apps.

PRO: Free $5 to invest, streamlined app that allows you more variety for investing

Get your FREE $5 here!

Myth #2. You Need a Credit Card

Fact: To achieve a strong credit history is by occasionally using your credit cards.

Truth is, you should not need a credit card.

Credit cards are solely for if you cannot afford something now, and you plan to pay for it over time in the future. Yet, that’s what an emergency fund is for!

In fact, what could be an expensive emergency will turn into an even more expensive emergency if you use a credit card!

It can be very beneficial to have good credit, like for getting loans if you’re house hacking. But you don’t need credit to survive in life!

Just make sure to set up automatic payments with your rent, utilities and bills to avoid any issue with your credit!

The key with this myth is simple: If you are serious about your money, you will be serious about using a credit card.

Myth #1. You Need A College Education to Be Successful

Fact: Depending on your trade, college may be necessary – but it is never required for “success”.

What is your definition of success?

For some, being successful could be the ability to retire early. For others, it could include owning a non-profit that you care deeply about.

Yes, there are a handful of jobs that require an education – like health professions and engineering.

However, is the student debt worth the assumed success at the end?

Unlike what is commonly taught in schools, the Internet can teach you pretty much everything you need to know these days. For most young adults, going to college may be the worst decision you make, if you are unsure of your degree while going to an expensive University, or end up getting a degree with poor return-on-investment.

There are countless people who can make a great annual income with trade jobs, trucking, blogging, and work up-and-coming IT jobs such as software developers. And thing is, they don’t require college degrees.

If financial freedom is your ultimate goal, you may realize that going to college for 4-6 years and accumulating 60k+ in debt may not be the most advantageous way to go!

What money myths have you come across? Are you guilty of falling for the above myths? Comment below!