In the land of finances, it is often hard to know what or whom to believe. Financial worries are extremely stressful and with all kinds of information out there, it is hard to know what is fact and what is fiction. Here are some common myths about your money and finances and what is true.
Everyday Spending Money Myths and Facts
Myth #1:
“I live Paycheck-to-Paycheck, I can’t start a savings.”
This is one of the biggest lies we tell ourselves. Most people who live paycheck to paycheck have more wiggle room that they realize. It is often just a matter of being honest about your priorities. Do you spend money on a bad habit? Do you not meal plan or at least make a list when you go to the store? There are lots of ways you can trim the fat in your budget to add even a small amount to a savings.
Myth #2:
“To truly save with Coupons, I would have to do it to the extreme.”
This is partially true. If you want to save a lot of money with coupons, it will require more work than just clipping, but you don’t have to do much work or even make a huge stockpile in order to have it matter in your wallet. Saving a couple dollars here and there will still add up.
Myth #3:
“If I check my credit too often, I will lower the score.”
The only time your credit gets lowered for checking it is when hard inquiries are made from potential lenders or leasers. Checking your own credit will not affect it at all and you can do it daily if you want with no effect. Sign up for a free credit report from a site like Credit Karma.
Myth #4:
“There really is no need to change my PIN numbers or passwords to my bank accounts as long as I don’t tell anyone what they are.”
This can be very dangerous. Even if a site is secure, there are still ways people who are hackers can find out your information. Every time you swipe your card you are putting it at risk. There really is no reason not to regularly change your account info.
Myth #5
“Credit cards are inherently bad and I should avoid them at all costs.”
Actually credit cards are good if you use them responsibly. Just be sure not to take out more than you can manage. A credit card is like opening a new bank account. You will need to make sure you can track it, watch it and pay your monthly payments on time. Also, never use a credit card for fun shopping because you are bored. A credit card should not be thought of like “free money”.
Myth #6:
“Thrift Stores have the cheapest price on Everything.”
This is not true in many cases. While thrift stores are often a great place to shop for some awesome deals, they do markup certain items to close the original price. Sometimes you can find a particular item you are shopping for online cheaper or even on sale. Don’t think just because it is at the thrift store it is the best price bottom line.
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