Many do not talk about money enough, but you have still likely received varying opinions from those in your life on how you should manage your finances. However, much this type of advice fails to take into account individual situations. Hearing the same advice repeatedly can ingrain it into your thinking, causing you to follow it without realizing what you are doing. There are a few pieces of money advice to avoid believing. The following are some of these common money myths:
Money Myth #1: Student Loans Will Impact the Rest of Your Life
If you owe several thousand or hundreds of thousands of dollars from school, it might seem like you will never get it paid off. However, that could not be further from the truth. There are many ways of lowering your expenses, even when you still owe a balance. Refinancing often is a lifesaver, since you are able to choose the terms, rate, and even monthly payment. With a NaviRefi student loan refinance, you can focus on other financial goals while still paying off the balance.
Money Myth #2: The Only Important Thing Is Your Credit Score
Of course, you do need to have a great credit score, since this affects everything from your housing situation to your ability to finance a car. Still, it is not everything. Just because your credit score is great does not mean you met your financial goals. Being able to take on more debt and develop your debt management strategy are helpful in certain situations. However, going deeper into debt is not the pathway to financial freedom. Other factors, such as your savings, net worth, income, and investments, also play into your financial health. Improving the way you invest and save are equally critical.
Money Myth #3: A Full-Time Job Equals Financial Freedom
Many financially free people have full-time jobs, but that does not mean it is the only path to freedom, and for many, full-time jobs feel anything but freeing. Working as a freelancer, independent contractor, or business owner possibly offers you just the flexibly you seek. However, many lived during a time when working a 40-hour week and receiving a regular paycheck were common for nearly everyone. These people might not understand why you seek to do something outside that.
However, this is a great time to take the risk of going after something you love doing. In fact, working on your own terms often allows you to choose how much you earn. While not every entrepreneur is successful, consider starting in an area you are good at. Offering a solution to a problem is a great way to start a business of your own.
Money Myth #4: You Should Cut Up the Credit Cards
It is not always bad to have credit cards, especially if you are responsible and self-disciplined with them. They are only bad to have if you are unable to pay them off at the end of the month. However, you can often get benefits with credit cards, such as cash back in certain categories. Just make sure you pay off the balance before making a purchase.
