Money Myths You Need to Stop Believing Right Now

Money Myths You Need to Stop Believing Right Now

MYTH: RENTING IS LIKE THROWING MONEY AWAY

Not necessarily. In a lot of ways, you’re saving money because you don’t have to shell out for annoying (and costly) expenses like repairs, landscaping, snow removal, heat and hot water–and sometimes you even get free access to the building’s gym. Besides, just because you own a home, a profit isn’t guaranteed should you suddenly have to sell.

MYTH: YOU SHOULD ONLY INVEST IN WHAT YOU KNOW

It depends on how you take this advice. If investing in what you know means sinking cash into companies with names you recognize, or worse, companies that are within your industry, that’s a bad move. (It means ignoring the twists and turns of the broader market.) If it means investing in a portfolio of stocks that you’ve researched meticulously, by all means, carry on

MYTH: REMOVING BLACK MARKS FROM YOUR CREDIT REPORT IS EASY

Sure, a clean slate can be yours–you just have to wait seven years. Yep, that’s the amount of time negative information remains on your account, according to FICO. The only exception to the rule is inaccurate credit information (you should follow these steps to get a dispute cleared up). The good news? A collection that is five years old will impact your FICO score less than a bad move made five months ago.

MYTH: YOUR KIDS SHOULD BE YOUR TOP FINANCIAL PRIORITY

As far as providing clothing, food and a roof over their cute little heads, yes, that’s on you. But if you have to choose between saving for them to go to college or your own retirement, invest in your retirement all the way. Look at it this way: You can get loans for college. But there are no loans for spending your golden years in Boca Raton.