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Sep 3

The top 10 personal finance misperceptions on the money

Posted by at 17:50 | Default | Comments(3) | Reads(1460)

Money creates the urge to either expend or to save. People tend to find avenues of personal and public finances to well-utilize their hard-earned money. The irony of their search is quite interesting which evolves from their self-led thinking or myths on personal as well as public finances. A very insightful research has come up with top 10 lists describing the common finance myths on the money.

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Pay Off Your Mortgage As Soon As Possible
Undoubtedly, loan liability is like a sword on household finances that hangs on the head till it is entirely paid off. It is generally believed to prepay the house mortgage at the earliest to reduce the burden of interest payment and also to, ease the 30-year repayment term plan. But, is it wise to make haste in paying off the mortgage and ignoring the important budget investments. In Personal finance planning, one needs to prioritize his expenditure and has to ensure the money-availability for higher-rate debt payments, insurance, emergency needs etc., before giving away money for prepayment.

Buying a Home is Always Better than Renting
A dream of owning a house is every person’s young desire. These dreams turn into ambitions and people put their mind in personal budgeting. The generic perception is to have one’s own house instead of living in a rented house. The reason is that renting is an additional household finance and a burden on monthly income. Basically, this decision may not be sound for people who don’t have the ready financial ability to bear the up-front expenses, for instance, closing costs, down payments, registration charges etc. In such case, renting would be one of the wise personal finance tips in comparison to buying a home.

Pension saving

Personal finance planning includes covering the livelihood expenses after retirement. The crucial old age shall rely mostly on the savings made during young working age. The only issue that has been observed is that young generation fails to correctly estimate the money to be saved for future purpose. The statistics show that the average money saved by people under pension scheme is about £ 124,000 i.e. £12,000 p.a. which is far less than attributed by expert pension calculators. So, listen to the expert’s advice.  

Having Credit Card Balances Will Boost Your Credit Score
The simple truth behind credit cards is to pay them in full each month and don’t let the credit balance accumulate. It is not the fault of credit card if you find a boost in the credit score. Rather, the credit scores are estimated on the basis of credit utilization ratio which is better if debt is less against the ready-to-loan lenders. So, manage your personal loans, pay timely credit card bills and smile with ease every month.  

Cash is King
If the person has to choose between a credit card and cash/debit card, he believes in opting for cash/debit card as it comes without interest or statement. The generic thinking is that it is difficult to trace outflows if payments are made via credit card and the outcome is heavy bills or high debt/interest on late payments. But, actually Cash/ debit card is not secure in comparison to credit cards, as cash can be easily stolen and leaves no scope of return whereas debit card leads the fraudsters straight to your bank account and credit card provides numerous offers and better security, provided you act responsibly. The best of personal finance tip here would be to be punctual in paying full bills and check the credit-card app on mobiles to trace bills, benefits, offers etc.

A Penny Saved Is a Penny Earned

The usual trend seen in a family’s personal financial planning is saving money by buying cheaper products or adopting cheap solutions. For instance, shopping coupons or meal coupons can arouse your temptation to buy more than necessary and the final result is actual waste of saved money. It is advisable to save the money by spending on apt things rather than cheap products and then facing heavy after-effects.

About Top Earners
High income group have always been the target of income tax officers. Though, it is believed that ratio between a normal income-earning individual to top earning individual is 10:1, which is incorrect. As in total, there are just 1% people who are earning more than £150000 p.a. and this category is of the highest income tax payers as compared to the middle income or upper-middle income groups.

Precious Metals Are Always a Good Investment
Precious metals like gold, silver are often considered as safe as well as excellent investment. On the contrary, the volatility in their prices is abominably high and speculative. Its buying and selling price may see significant variation leading to either huge loss or minimal profit. Secondly, it is difficult to safeguard these precious metals and one has to pay locker rents in banks to keep them secure. So, think wisely before opting for this investment under personal finance planning.

Too old to invest in stocks
Investment in stocks or securities should be on the basis of your monetary needs for household finances. People tend to think that if they are growing old they must avoid taking risks of stock investment. Rather, it is one of the best sources of investing your saved money as you have time to monitor the stock analysis and can make out reasonable money by heeding the expert advices.

I Don’t Earn Enough to Save
People who don’t save usually make this statement i.e.’ I don’t earn enough to save’. Everyone has the capacity to save from his earning, high or low is not worth consideration. It is an experienced perception from wise persons, that, saving is one habit that everyone must develop for better future.

sawan2211 Email Homepage
2019/09/30 20:24
5 Biggest Money Misconceptions

1: A Good Salary Equals Financial Security

2 Everything Will Work Itself Out

3 Budgets Take Too Much Work And Don't Really Help

4 I Can Start Saving for Retirement Later

5 I Don't Need to Worry About My Debt
uankuan0 Email
2019/10/01 03:49
Money creates the urge to either spend or save. People tend to seek ways of personal and public finances to make good use of their hard earned money. The irony of their search is quite interesting, which evolves from their own leadership or myths about personal and public finances. I sure have https://customessaysreviews.com/custom-writing-org-review/ . Very sophisticated research has come up with the top 10 lists describing common financial myths about money.
Cate Blanchett Email
2019/11/08 22:39
Thanks for clearing up these misconceptions here about money. I know some people who do finance for cars, and they had some of these misconceptions. I can clear up their misconceptions now, and they'll thank me.
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