Four major money myths busted
There’s a lot of information out there about what to do and not do with your money, so it can be tricky knowing where to look and what to believe. In amongst all of the noise, there are some myths we’ve been told about money which do more harm than good and just simply aren’t true. So let’s bust those myths right now.
Talking about money is rude
It’s safe to say that not many people jump at the opportunity to talk candidly about money, but there are a whole host of benefits and reasons why talking about money can change your life for the better. From increasing salary transparency and helping to improve visibility on what people should be paid for their work which incidentally benefits women more than men, through to helping dismantle the veil of secrecy around how young adults on average incomes reach major financial goals (aka often with help), talking about money is positive in so many ways.
You can’t invest unless you’re wealthy
Rewind twenty years or so and investing money was reserved to the few, with only individuals and families who employed wealth managers or financial advisors able to easily access the stock markets. Today, things couldn’t be more different: the boom in FinTech companies over recent years has allowed investing to be democratised, and now beginner investors across the globe can invest their money at low cost from their phones. It’s quick, easy and you no longer need to have lots of money to invest - you can start with £10 or £20 per month.
Earning lots of money will make you rich
Although income does have a knock on effect on your ability to build wealth, it’s definitely not the defining factor when it comes to being rich. Managing your money is fundamental to building your wealth and increasing your assets - you can have a super high earning job but if you spend as much as you earn, you’ll not have any wealth when you stop working. Lifestyle inflation is real and it can creep up on you, so don’t be fooled into thinking income equals wealth alone.
Buying property is the always the right move
As a nation of home ownership obsessives, buying property often feels like the be-all and end-all for many adults across the UK. Yet it’s important to remind ourselves that it really isn’t always the best decision - financially or socially - to rush into buying a home. Home ownership can have huge benefits and for many, it provides financial stability later in life, but there are also a huge number of costs associated with buying a home and potential issues to consider. Renting often offers a flexible way to live in an area you enjoy with friends, so don’t rush to drop everything and buy too soon.
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