When it comes to investing, spending and saving money, people used to follow and practice certain age-old money myths which they believe are true for every case.
New Delhi: When it comes to investing, spending and saving money, people used to follow and practice certain age-old money myths which they believe are true for every case. There have been a number of generalised statements and myths with regard to investments, spending style and saving money which are actually not true. In the rapidly changing dynamics of availability and requirement of funds, a static statement can’t be applicable to every person when you are required to decide on investing, planning, spending, etc,
People, however, follow generally accepted statements following which they unknowingly end up in disturbing their respective financial health. A financial decision, be it the number of credit cards, investment option or spending style, varies from person to person.
Here are top 4 money myths decoded
For investments, you need huge amount of money
When it comes to investing, people think a huge amount is required otherwise there is no point in investing. This is absolutely false. An individual can start investing and saving from as low as Rs 100. You can surely start from the scratch following which you can slowly and steadily increase the frequency and quantum of money.
More credit cards will lead to debt trap
Higher the number of credit cards, higher will be the possibilities of debt trap situation, this is assertion is also false. An individual falling into a debt trap completely depends on the spending habits and repayment of loans, if any. More number of credit cards even increases the possibility of a good credit utilisation ratio.
Big online sales give highest discounts
The most common belief of all the online shopping carnivals offering lucrative discounts is not true. Most of the times, people fall for their marketing and position tactics and start believing that this is the last time when we can get the best deals. All the online shoppers should get themselves aware of the fact that all the online sales are largely similar. The prices of products change on a minuscule level, the only big difference lies in the name of sale, how well it is positioned alongside a festival.
Mutual fund SIPs are safe
There is a widely accepted convention that mutual fund SIPs are safe and no money will be lost in any case. Mutual funds are nothing but a well constructed, balanced, and managed portfolio of stocks, bonds and other market tradable securities. Mutual funds can only reduce or diversify the risk. Mutual fund investing can’t eliminate the risk completely.