There’s so much information about money out there- advice, tips, tricks and more. As a result, most people end up consuming information without being able to filter out myths and misconceptions.
Truth be told, it’s hard to separate facts from myths sometimes, especially when it comes to something as popular and controversial as money. So, we’ve put together some of the biggest myths and misconceptions you should avoid, regarding the legal tender.
Check them out:
You Need A Lot of Money To Start Investing
This is false. Contrary to popular opinion, you do not need a lot of money to start investing. With as little as 5,000 Naira, you can invest in several opportunities and increase your input as time goes on. If you haven’t started investing, it’s not too late!
Earning A Good Salary Means You’re Financially Secure
The truth is, getting a good pay doesn’t automatically guarantee you financial security unless you back it up by practising good financial habits. If you don’t have a reasonable budget, monthly savings, investments, emergency funds, financial goals and more, you’ll be many steps further from financial security. An excellent salary is only a step. You need to do more.
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Retirement Saving is For Older People
The best time to start saving for retirement is the period of your youth. Most companies pay a monthly amount into your RSA (Retirement Savings Account) -which you can use and even link to other jobs as you move on in your career. Start saving towards your retirement so that future you would be proud.
Budgeting Is Pointless
A lot of people think budgeting is pointless because it’s ‘impossible’ to plan your spendings because expenses always come up. Some think budgeting is way too complicated while others think you need to have a substantial income to budget. The truth is, all these are false. Budgeting is one of the best financial habits you can adopt at a young age. It helps you stay disciplined while ensuring that you do not go overboard with your savings and end up broke. If you’re concerned that expenses will always come up, you should allocate a part of your budget to certain unforeseen contingencies while ensuring that you have a stable savings account and an emergency fund.
Saving Means Deprivation
Saving your money isn’t supposed to be a form of self-inflicted deprivation or punishment. Savings culture means cutting off unnecessary expenses that could deter you from reaching your goals by putting aside amounts of money for your future self. You don’t have to lower your standard of living or deprive yourself of essential things. If you do this, you’ll be unmotivated quickly.
Which of these myths is the most common? Tell us!
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