There are many myths and beliefs we hold about money that we have often heard growing up or been told them by others and they have just stuck. Here are some myths that need to be put right.
It takes money to make money
This can make people believe that they need to already have money to make a success of themselves or of a business, which simply isn’t true. There are a lot of examples of people who have made money from nothing with thriving businesses. There are also ways for those who want to start up a business to get help and grants for official sources who are there to help.
Buying your own place is better than renting
Many people hold the belief that renting is throwing money away, however, it all depends on where you live. Property isn’t always necessarily going to rise in price in every area of the country and if the property bubble bursts, you could find yourself in negative equity.
With the cost of living on the rise, paying for things to be repaired, or maintenance on a place of your own can prove extremely expensive. With most rentals, the landlord will have to pay for these kinds of things.
Paying in cash will save you money
Yes, we spend more money when we pay by card than when we pay by cash because it feels like it’s not real when we can’t see it. However, it’s just as easy to spend the cash once you have withdrawn it from the cash point and it’s burning a hole in your pocket.
There are better ways to try to cut back on your spending. Try withdrawing your weekly money allowance at the beginning of the week and stick to that amount. However, one of the downsides to this is that if you lose a wad of cash, it’s usually gone forever, whereas if you lose a card it can be cancelled straight away.
An engagement ring should cost 2-3 months’ salary
This so-called tradition was conjured up by jewellery companies that want people to spend a lot of money on the ring! Spend whatever you can and whatever you want. Surely nobody keeps to every tradition with regards to marriage in the 21st century.
You always get what you pay for
This is true in some cases, but not all. Certain cosmetics, for example, will increase the price of their product after they add a fancy word into the title when really it’s just the same as many other cheaper products on the market. Supermarkets own brand food is also often cheaper but just as good.
You’re too young to start a pension
You are never too young to start saving towards your pension. Starting to save in your 20s compared to in your 30s means you would have a very nice sum of money to retire on at the age of 65, or whatever the retirement age is by then!