Avoid Getting Caught Up in These Money Myths

Do you struggle to save money? Does it seem like there’s just never anything left over?

14:01 12 April 2019

If so, then you share the feeling with quite a high number of Canadians. One recent study has shown that nearly 46% of Canadians are $200 or less away from insolvency at the end of the month. With interest rates at notable highs debt being easier than ever to collect, we may not feel like we’re ever truly in control of our finances.

In order to change a financial situation, you need to start with changing how you think about money. If you’re in a position where a financial emergency comes up, you can rest assured knowing that there are reliable and trustworthy means of getting some extra cash out there. Online payday loans from trustworthy and discretionary lenders can give you the boost you need until your next paycheque arrives.

You need to know yourself to make the best financial decisions for you. If you forgot about these money myths then now’s the time to reconsider them and take a customized approach to your personal finances. Here are some common money myths you can bid farewell on your path to a healthier financial profile.

Only Wealthy People Can Invest Money

Does the idea of investing conjure up images of mahogany boardrooms and leather-bound portfolios with numbers that no one but the stuffiest accountant can explain? It’s a common myth that only wealthy people can invest money since nowadays there are plenty of digital tools and means of educating oneself on how to invest.

You can invest small amounts of money and still reap big rewards. You will need to commit to saving money and putting it away, and one way to get the ball rolling with this is to try the old-fashioned cookie jar approach. Start by putting away a small sum — it can even be just $10 a week — and you can even save it in a physical place like a shoebox or jar until you’re ready to put it into a savings account.

“Eventually I’ll Be Able to Save for Retirement”

This type of money myth can end up hurting your prospects in the long run. Just like knowing that there are always easy payday loans out there to help you, the knowledge that your income will eventually be enough that you can save for retirement without adjusting your lifestyle is not a proactive way of thinking.

Yes, quick payday loans can be helpful. Yes, you can hope to make more money one day. But if you don’t actually take the steps to turn your financial goals into actionable items, you won’t make any progress.

Start preparing for retirement right away, and this might mean that you first need to focus on clearing away debt and setting up an emergency fund with three to six months of living expenses set aside. If you can start saving today, don’t put it off any longer.

You Don’t Need a Budget with Online Banking

It’s easier than ever these days to keep track of your spending with online banking and financial apps that can track purchases and bill payments. But being able to see where your money is going isn’t the same as having a budget.

You need to plan and develop a forward-thinking mindset for your money. A budget does this. It sets you up for what the next while will look like and lets you plan and prioritize paying off debts, saving, and planning for the future. A budget is a powerful financial tool. If you’ve heard that you can skip it, then it’s time to reconsider. You can enlist the help of a financial professional to help you set up your budget and even team up with friends and family who have similar goals so you can encourage each other to stay on track.