7 Personal Finance Myths That Need To Be Busted!

If you've been reading personal finance blogs, listening to podcasts and watching YouTube videos on money topics like debt, investing for retirement planning, then you're probably familiar with the many myths surrounding these topics.

But what if someone told you that there were things in your life that weren't true? What if they said that some of the most popular personal finance advice out there is actually bad for your financial future??

Don't listen to myths about finance, instead take some time and research what works best for your own personal finances or work with a professional financial advisor —you'll be glad you did!?

1# Student loans are the best way to pay for college

If you're going to college, student loans are a good way to pay for it. They can help you get a better job, build your credit score and history, and even save money on tuition.

But there are some myths about student loans that need busting. Here's what we've found:

• Myth 1: Student loans are bad investments because they have high interest rates and fees attached to them.
• Myth 2: You'll never be able to pay off your student loan after graduation (this is true if you don't take action).

The truth is that if done correctly—and with some planning—student borrowers can actually make more money off their debt than they would from just paying it off over time with no returns at all!

2# Investing is a gamble

If you think about it, investing is actually a way to make money. You can invest in assets that will appreciate in value and provide dividends, or you can buy stocks and bonds for the purpose of earning interest on your money.?

The biggest myth surrounding investing is that it's risky—but this isn't true at all! The risk associated with investing comes from buying shares of stock or bonds; these types of investments involve uncertainty because there may come a point where they lose their value because something unexpected happens (like war).?

3# It's impossible to achieve financial freedom if you live paycheck to paycheck

The first thing that many people want to do when they're in debt is get out of it. But the reality is, getting out of debt isn't as easy as most think. It actually takes focus and patience.?

To get yourself unstuck from your debts, start by making a budget and paying off the smallest debts first. Then focus on those payments until there are no more left over.?

Once all your bills are paid off, start paying down any other debts that are still holding you back from achieving your goals—your car loan or credit cards might be the perfect place for this!?

And finally use what's left over after each payment cycle towards building up even more money so that when next time comes around again there'll be even less leftover than before!

4# Having no debt means you're financially responsible

It's true that having no debt is a good thing, but it doesn't mean your finances are in order. Credit card debt is typically not bad for most people and can be used wisely or unwisely.

If you use credit cards responsibly, then it's not necessarily a bad thing for someone to have some kind of credit card balance—as long as they pay their monthly bill on time and don't overspend with the cards too often.

5# Stocks are the best way to grow your wealth over time

We all want to grow our wealth over time, but stocks are not the only way to do it. The stock market has its risks, and if you're not careful, they can wipe out your retirement savings in one fell swoop.

There are other options that offer better returns without the risk of losing everything if things go south on Wall Street. You can invest in real estate or riskier investments like hedge funds or private equity firms (but again—these require more capital).

6# Paying off debt should always take priority over saving for retirement

You need to pay off your credit card debt, first. It’s a common misconception that you should save for retirement before you pay off high interest debt, but this is not true.?

You can actually put money into an investment account and then use that money to pay down your loans or other debts at the same time. It’s just going to take longer than simply paying off the highest interest rate loan first.

Pay off loans with the longest terms first (and watch out for fees). Then move onto lower balance accounts like student loans or mortgages. Finally take care of small retail instalment plans like car purchases and rent payments.

7# The rich are greedy and selfish people who got rich by stepping on others

You may have been told that the rich are bad people who got rich by stepping on others. This is a myth, and it's time for you to bust it!?

The truth about wealth and success is that there is no such thing as good or bad with money. Rich people can be selfish, but they also have good hearts—and we all need both traits in our lives!

We're taught by parents and teachers alike that if someone has more than us, they must be greedy. But while some wealthy people definitely earn their money through unethical means (like stealing).

Most successful entrepreneurs did not get where they are without being hard workers who hustle every day of their lives for years before getting lucky enough to strike gold on an investment opportunity like Apple or Facebook.?

Final Words

As we've seen, these myths can be dangerous to your financial health because they make you feel like you don't need to pay attention to what's going on with your investments or retirement accounts.?

If you find yourself feeling stressed out by not being able to save enough for retirement because of all the other responsibilities in life, then maybe it's time for some new information about personal finance, investing and saving!