Stop Following These Financial Myths Right Now
We’ve all had our fair share of bad advice when it comes to money and finance. At some point, you’ve dealt and believed some friend and as it turns out, it did not work. It may also be an acquaintance or a family member that gave you an inspiring thought and meant well for your financial dilemma. Only when it’s late we find ourselves wishing we have done our research.
Sorting the good advice from the bad one is not an easy task! Wonder no more as here is a list of financial advice myths revealed, before you exhaust your account and make a wrong turn financially.
Investing in Stocks Means You Won’t Lose Any Money
Find a sure investment, not just based on rumors. Find a good investment that is not only based on statistics but also in facts gathered and the studies on how it turned out to be a good idea. You need to remember that anything that sounds or looks too good to be true needs to be checked. That is applicable to investing.
Doubling our money over the year sounds all interesting but that’s hardly realistic. Any person convincing you that it’s possible is either misguided or just juicing you to their own advantage. You need to be careful of such advice. Staring at something so bright could blind your judgment.
Investing All Your Money in “Hot Stocks” Or Companies That Return High Money
Be wary of the hot stocks that make big money. Although the idea of investing in stocks is interesting given that you can earn interest on a short-term basis, this option is risky and could cost you more than you think. Hot stocks could burn you. It is important to have diversity in your portfolio where you can see the risks for investors and the potential maximum returns. This is to eliminate the risks in the future. Remember the golden rule, don’t put all your eggs in one basket because if one company or hot stock collapse, at least not all of your money will collapse too.
All Debts Are Bad
The equation is a fact. Debts are bad for a reason. CEOs fall due to debts they never thought would catch them. It doesn’t matter if it’s a credit card debt or some other sort of debt, they come in different categories and still they belong to the same family, debt. One that you owe and one that needs to be paid. This will be a financial burden for you.
There are exceptions, of course. Debts that could lead you to earn money, in the long run, are worth it. Just like paying your mortgage. Being a regular employee and securing yourself a home is good. It’s a good investment, an asset. You couldn’t get a house for yourself without applying for a loan with a regular salary. Assets and properties increase their value as time goes by.
Whatever happens in the future, you always have the option to sell it and get a better one. By this time, your house could be sold for more than the price you paid it for.
The Wealthy People Always Give Right Financial Advice
The source of financial advice matter. Were they financially successful in their businesses? How did they handle their finances? Can they get something out of you if you follow their advice? These are just a few of the things you should ask yourself before getting their take on finances. Having other people tell you what could be a good idea does not necessarily mean that it is. It’s always best to have the idea researched first before investing your money in it.
All Financial Advisers Know What’s Best For You
Financial advisers are there to give good advice in increasing your money which is why we would always think that all financial advisers will help and do what could be best for you. That’s an easy assumption, you hired them for that reason.
However, you should always remember that the only financial advisers that are required to act in your best interests are the ones held to the fiduciary standards. Your financial advisor should be personally chosen by you. Choosing them personally would mean that they understand what you want and value. The fiduciary financial adviser would pursue your goals and can give you confidence in your financial future.
In the end, the consequences and reward will be yours to reap. You should be responsible enough to get your facts not only based on rumors but also with statistics and enough research.
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