Both TV and Internet are full of shows and articles revolving around personal finance advice, and this has made it harder to tell between facts and fiction. Don’t rely on myths to make a career choice. To help you further, we have busted 5 common personal finance myths. Read on.
1. Saving Before You’re 40 The earlier you start saving for your retirement, the better it is. Even if you start just 10 years earlier, your savings will be a lot higher. 2. Buying a Home This depends upon many factors, such as your down payments, closing costs, credit score and the time for which you are going to stay in that house. 3. Carrying Credit Card Actually, it’s the other way around. It’s better if you the least amount of debt. The trick is to pay your debt as soon as you can instead of carrying the balance to the next month.
4. Investing in Precious Metals Unlike the TV ads, investing in precious metals, such as gold can be risky as their prices are too volatile. 5. Multiple Credit Ratings Know that you are going to work with at least three main players: Experian, Equifax and TransUnion. And then there are a lot of banks as well. So, they have different formulas to figure out your credit rating. But there won’t be much difference between the score calculated by different agencies. So, you see these are just myths, nothing more than that. If you can, save as earlier as you can for your life after retirement.