People are always faced with the reality of making personal financial decisions about saving, borrowing, investing, and just trying to work out how to survive the next day, week, month, and even year without being financially stranded. But over the years, that has been more of a struggle especially with all the misinformation, myths, and self-proclaimed finance gurus tainting the marketplace with lies. With everything that is currently happening out here, no one would be in a position to blame you if you ended up being confused about how you would spend your money. Here are some of them and how they have misled a good number of innocents. Don’t fall victim to these myths.

1. Money Can Not Buy You Happiness

For a long time now, wealth has been correlated to happiness, particularly between the low and the medium-income earners. When you look at some of the studies and surveys that have been conducted over the years, you would agree that money can, to a great extent buy happiness. You find that as a person acquires more wealth, his/her emotional well-being also improves a great deal. And their happiness increases at almost the same rate. But should they start to lose that money, then you will notice some stress and other pressures creeping in.

2. You Earn Too Little To Save

False. In as much as it is easier for you to save a good amount if you are on a substantial salary, even the low-income earners can set aside some cash each month if they put their head into it. The key here is utilizing a good budget system. Use it to understand yourself, and from there, you can save even if you earn a small amount each month.

3. Forgo Buying A Home And Opt For Renting

Many financial experts always say that the long-term benefits of purchasing a home far-outweigh that of renting. In as much as this may, to some extent be true, you also need to know that you are not wasting your money by renting a house. But think about it for a second, while renting, you will not have to face expenses like real estate taxes, mortgage interest, HOA fees, or even maintenance costs. Put all these together and do the math for a second.

4. A Will Is Not Important

Most Americans have this notion that wills and any other estate planning aspects are reserved for the very rich. And that is why you find that close to half of Americans between ages 55 and 65 don’t have wills. But a will is a critical tool for everyone. And your financial status does not dictate as to whether you qualify for one or not. A will can help ensure that your assets are distributed as per your wish after your passing and is not limited to specific people.

5. You only get what you pay for

A high price tag can mean one of two things or even both; prestige or quality. But sometimes it just means that you overpaid for an item. So, just because you get to pay a load of cash for something does not necessarily make it more superior. Plus, it may also end up not making your life any better.

6. Start With The High-Interest Loans During Credit Repayment

Okay, first, it is always good to want to pay off your debt. Plus, paying off the high-interest loans gets you out of debt a lot faster. But then again, different people’s financial goals and temperament are not always the same. So, attempting to clear off high-interest debts more quickly might end up hurting you more than it helps. You don’t you pay off your smaller debts to build momentum then work from there?

7. Always pay in cash

There are some demerits to paying for services and items with cash. Like if the inflation is on the positive, then you will be more likely losing purchasing power. You will also most likely be losing out on other benefits lie credit card usage rewards too.