There’s lots of free advice on financial topics, but sometimes it can be misleading or even downright wrong. This can lead you down the wrong path and even have you believe things that can be trouble later.
When you separate fact from fiction you start to see things differently, and that can make all the difference when it comes to your own personal finances.
Paying the Minimum Amount Owed is Fine
While you do need to pay a minimum amount each month, it isn’t fine to stick to this number and it actually costs you more in the long run. Depending on the amount you owe, if you only make minimum payments, you might only cover the interest. Also, you might find the amount owed doesn’t actually decrease.
It’s Hard to Enjoy Life Unless You Are Debt Free
Being stressed by debt and personal finances can take its toll at times, but that doesn’t mean you can’t enjoy life while being in debt. If you have a handle on making your payments, then you might find it is manageable and not so much an issue. If you put some of your plans on hold until your debt is paid off, sometimes you’ll never get there. Every situation is different, but the fact of the matter is that most are in debt for one reason or another, and finding the right balance is the key.
I Can Always Save Later
Maybe so, but this isn’t the wisest approach to your own finances. Unless you enjoy living paycheck to paycheck, you should have an emergency fund. It’s not a case of “if” but when you might need it. To build a solid future, you want to start budgeting and saving to better manage what you have available to you. Spending without a plan is never good.
Whether you have bought into any of the myths above or others like them, hopefully you will start to question some of the advice you’ve heard in the past.