The most popular myths about saving money

Financial myths are deeply rooted in social consciousness. If we want to change our own thinking about finance, we should disprove the myths in which we function.

I’m saving up because I’m buying on promotions

Promotional purchases are good for the Budget if we don’t become addicted to the crazy sales. Sometimes in search of discounts, “buy 3 for 2” discounts, you can lose count and thus lose Control over purchases.

Promotions are good if we buy what we really need on them. Try to think twice before each purchase, are you sure you need what you want to buy. This is the first step towards saving money.

I have no idea about finances

This statement is an excuse to free us from Managing money. “Having no idea about finances” – it’s easier to spend a salary, squander a bonus or shop on credit without a plan. The excuse also allows us to complain about the condition of our home Budget.

Meanwhile, you don’t have to be a strict mind to Control your spending.
The key is the approach to money management and the fact that we want to Control it. It’s worth starting by buying a home saving notebook.

I don’t make enough money to put off

The art of putting money aside is not so much about the amount of money put aside as about regularity. So if we deal with myth number one and start to manage our home Budget, then even with a small income there will be space to save money. If we combine financial strength with our partner or spouse and together we start saving for a Specific purpose – at the beginning it may be a short-term goal – then we will become dependent on saving over time.

saving money

Every loan is a problem

The loan may be secure and allow you to make an urgent purchase. It is important to finance expenses wisely.

A secure loan must match your Budget, your earnings and other burdens.

The test that will allow to adjust the loan well to the financial situation is to “freeze” the instalment that we would have to Pay back in the future. Such a procedure can be carried out for 2-3 months and only after making a decision about the debt.

There will come a time to think about retirement

I’ll think about putting money aside for retirement – this approach makes time go by and the chances of securing one’s life in retirement are diminishing. Then I think that it’s too late to put money aside for retirement.

It’s a vicious circle.

You have to think about your pension as soon as possible, when you take your first job. Even putting aside a Small amount of money will work in the long run.

Children should stay away from finances

Financial education is very important and should start as early as possible. First of all, it is based on pocket money. Children who have monthly pocket money learn to plan their Budget and regulate their expenses.

Economists emphasize that it is worth teaching children how to manage money.
Cutting children off from the knowledge related to the practical sphere of finance makes young people very poorly assess their Budget management skills. It is worthwhile to teach them step by step how to manage their home finances.

Financial trouble? I’ll get out of it somehow

I’ll leave at the most, I’ll stop paying or borrow from my family – it’s not worthwhile to make such risky scenarios. If we feel financial difficulties, we must act. At the beginning you should analyze the financial situation (financial expenses and receipts), come up with a few scenarios to get out of trouble (saving, extra work), and finally have a discussion about finances (with relatives, with a Financial advisor, if the situation is serious – with a creditor).

Only by facing financial problems can you get out of debt and improve your credit history.