There is no shortage out there of gurus and experts with a thing or two to say on the subject when it comes to money and personal finance. Unfortunately, the reality is that with all this information out there, many money myths have developed as a result of it. I’m here to debunk ten of the worst money myths that are just plain bad financial advice!

Top 10 Worst Money Myths You Need to Forget

 

Myth 1: It’s cheaper to buy a home than to rent

One of the biggest money myths is that it is cheaper to buy a home than paying rent each month. While paying your mortgage is going toward equity in your home, it’s not always more affordable to buy! Buying a home comes with home repair costs, closing costs, and any other fees that can make your rent look like a dream come true!

If you do buy a home, make sure you purchase something you can easily afford and pay off early. 

Want to know more about how you can pay off your home loan early? Check out this post

 

Myth 2: The safest place to put your money is in a bank

High yield savings accounts and even investing your money are ways you can be earning money by just letting your money sit there. So sure, putting your money in the bank will keep it from getting stolen, but that doesn’t mean it’s the best option.

 

Myth 3: You’re young! You can save later

Start saving now! You are never too young to start saving money for your future.

Compound interest is legit. Don't miss out on having time on your side!

 

Myth 4: Carrying a balance on your credit card will improve your credit score

While paying off a payment regularly can improve your credit score, you can harm your credit score by carrying a balance on a credit card.

Want to know how to manage your credit cards responsibly? Check out this post

 

Myth 5: You need to have a college degree to have a good job

There are many great jobs out there that don’t require student loans or a college degree. For example, trade jobs or even customer service jobs don’t need a college degree.

 

Myth 6: Only rich people invest their money

You don’t need a lot of money to start investing! Many services allow you to begin investing with as little as $20! Even the Acorns app lets you invest your loose change!

 

Myth 7: You should always use a debit card or cash

By paying with cash, you are not only unable to take advantage of rewards and cashback that would come with credit cards, but you are also unable to protect your money. If someone steals your debit card, your bank may not be able to help you. If you lose your cash, it’s gone for good!

Three Things You Need to Know About Identity Theft, and How You Can Prevent it From Happening to You

 

Myth 8: Old cars are not safer than new cards

Many old cars are just as reliable if not better than some of the new cars on the market. When our grandparents and parents used to say they don’t make them like they used to, this is true with cars! 

Want more ideas on how to save money by using what you already have? Check out this post

 

Myth 9: You shouldn’t start investing until you are debt-free

You can pay off your debt and invest simultaneously! But, every year you wait to invest, the less money you will have by retirement!

 

Myth 10: You need to have X amount saved by X age

There is no rule or exceptional circumstance or even a set goal of how much money you need to have saved by each age. This will vary by your lifestyle, your home situation, and so much more! So don’t let anyone tell you that you need to have a certain amount of money saved; you decide how much you should have.

 

There is a lot of information and advice out there about how you should manage your finances. However, remember that personal finance is called personal for a reason! There is no one size fits all solution, and often you will have to adapt advice to fit your life and finances.

 

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