Though it may be hard to believe, a large percentage of the population doesn’t know the first thing about personal finance. Savings, loans, investments, debt –– these are concepts that people discuss on a regular basis; yet, relatively few individuals truly have a grasp on their financial situation. And it doesn’t help that there’s a lot of misinformation floating out in the ether regarding money-management best practices. Today, we’re going to bust four finance and investment myths so that you can focus on genuine money tips that will help you make smart pecuniary decisions.
Here are 4 Major Finance & Investment Myths Busted
Only a Few People are in Debt
Facing down a set of hefty bills and struggling to pay off debt can make anyone think like the whole world is against them. Debt makes people feel isolated and may even spark anxiety and fear. But the reality is that if you’re in debt –– you’re not alone. In fact, you’re part of the majority. Most Americans will die with some debt still left on their accounts. This isn’t a particularly cheerful fact, but it should give you some decent perspective on your financial standing.
Most Businesses Fail Within their First Year
While the track record for small businesses isn’t necessarily good, it’s not as bad as some people make it out to be. In truth, only around a third of small businesses go under during their first two years. Half-fold within five years. And two-thirds will close their doors before they reach their tenth year.
Buy Low, Sell High
On paper, this concept sounds bullet-proof. Buy undervalued stocks for a low price and sell them for a big profit when they hit their peak. What could go wrong? Lots, actually. Identifying undervalued stocks is extremely difficult –– after all if they were obviously good stocks they wouldn’t be “undervalued.” Furthermore, the “average” investor may not have the time or resources to purchase an underrated stock and wait for it to come good. Buying low to sell high later can be a solid investment strategy, but you have to have the capital, experience, and the nous to pull it off.
There’s Always Time to Set Up a Will
Not to sound overly fatalistic, but there may not always be time to draw up a last will and testament. Accidents occur all the time, and if you don’t have the proper estate planning forms in place, your final instructions regarding your finances may not be carried out. Remember, you’re never too young to fill out a last will and testament.
Final Thoughts
These Investment myths may sometimes scare you or challenge you. The important thing to remember is to focus on genuine money tips that you can truly use in managing your money and making a smart decision about your money and investment.
Knowing your Financial Standing and Personal finance makes a huge difference when it comes to managing money and investment. Research and asking professionals for help would be a huge help to understand more of what your financial standing is so you can better plan for your finances.
