There are many finance myths. Many times people carry out some beliefs about personal finances that turn out to be wrong. Although people are very conscious of finances, yet some myths have fooled many times.
If a person says you that money cannot purchase love, then you will get many arguable answers. It depends on a person to believe it or not! Same as this, some myths are listed related to finance that has fooled many for long.
- Your budget is your good friend Generally it is said that your budget is always proved to be your best friend. Some people buy the items according to their budget while others not. A report from Brigham Young University and Emory University has proved that the people who stick to the budget spend 50 percent more on a single item than the people who do not make any budget in life. People stick to the budget do not compare the rates of an item of the same category is one of the finance myths.
- More earning makes you richer It is one of the common beliefs that people earn can spend more is a common finance myths. It is generally seen in our daily life when you earn you spend more. Generally your expenditure increases. It all happens when you get instant access to cash and buy items that you have planned. This is also the reason that makes the most of lottery winners bankrupt as they fail to manage the sudden money.
- A higher degree helps you to get a higher salary It is often said by people in society that if one gets a higher degree he/she may earn a handsome package is one of finance myths. For earning a good package experience and knowledge matter not a higher degree. It is seen that college graduates earn $1 million over a lifetime and people holding higher degrees like doctors, engineers merely earn $1million more. If you are a graduate, with good practical skills no one can stop you to get a handsome package.
- Happiness cannot be bought by money Happiness is not the thing that one can buy with money. A person from low or middle-income earners wants to earn more so that his general life can improve. It is an opportunity for him to make his/her life better. Money is correlated with happiness is also one of the finance myths.
- Buying a retirement plan Many people think that having a retirement plan can make them completely tension free in the rest of their lives. There is also a big fact that the people having retirement plans sometimes face financial crisis due to the shortage of financial support. Sometimes the medical expenses are so much high that medical insurance plans do not cover completely.
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