A myth is a belief or explanation that is popular but untrue. Money is a general term and commodity used all over the world, hence people work for it, dream, and even make wrong assumptions about it.
Therefore, a myth about money is any belief a lot of money that is based on a misinterpreted factoid, something that only applies in a specific country, or an actual lie meant to trick people into making a mistake.
Regardless of the origin of a myth or the situation surrounding it, it is important to identify it for what it is, which is incorrect information.
There are several misconceptions about money ranging from earning to spending and even saving money.
These money myths are mostly untrue and the significance of these myths cannot be overemphasized because they tend to affect how we view money and how we see others who have money.
In worse scenarios, these myths can hinder us from developing a healthy relationship with money.
Some of these myths include:
Myth 1: You have to be rich to invest
So many people believe that it is only those with so much money that invest it. And this myth has narrowed the minds of people toward Investments. People have the notion that only the rich invest because they have a whole lot of money.
This myth is untrue because you must not have so much money before you start investing.
This is because there are investment opportunities with the lowest minimum investment amounts with interest compounded daily.
With these kinds of investment opportunities, you can start small and withdraw your money at any time with some interest.
The truth is that if you do not start to invest with the little you have, you might find it difficult to do so when you have so much money.
Bottom line, it is way easier to start with what you have and remain consistent than waiting for the huge capital you might never get in a long while.
Myth 2: It’s too early or late to save for retirement
Generally, people often think it is too late to save or invest for retirement, however, this is a wrong assumption.
This is because it’s never too early or late to start saving or investing in your retirement plans.
Those who think it is too early believe they have all the time in the world, which is quite untrue as most individuals get to the peak of their salaries in their early years.
On the other hand, if you think it’s too late to start saving for retirement, it simply means that you are ignorant of the fact that there are ways to still put sometimes tangible aside for retirement by investing in certain assets that offer high returns.
Having a retirement plan is very important and you need to start planning it out in your twenties, The earlier, the better.
Myth 3: You need to have so much money before you save
This is the silliest and most common of all the money myths. This particular myth has hindered a lot of persons from saving and even investing.
This is simply because they feel they need to have so much money before they start saving.
Start saving no matter how small it is because if you cannot save with the little you have or earn, chances are that you would never save even when you have or make so much money.
Myth 4: The riskier the investment the higher the rewards
This is a common misconception when it comes to money and investments. This myth is untrue because every form of investment has an element of risk, no matter how little it looks, but not all risks produce returns.
However, it is not the risk that produces the reward as some Investments with little risk produces large returns and rewards.
Therefore, thinking that an investment must be very risky for it to produce results is false.Featured Image Source: Connect Nigeria
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