People reveal the 10 biggest financial myths they still believe but need to junk in today's economy
Everyone has different ways of managing their finances. These have emerged from experiences, practices, myths, trends and even traditions. However, the economy is rapidly changing. What was sensible 10 years ago is nowhere close to the idea of frugality today. Whether it's investment in stocks, owning real estate or any other practice, all have seen significant changes with regard to the current economy. People's spending priorities have changed and so have their methods of saving. However, there are a majority of people who are loyal to their previous methods. Many prefer to stick to the financial practices they believe will help pay their bills.
While each trend may be adapting to the dynamics of today, certain financial concepts need to be chucked. It's a myth that the latter are economical. u/theorysproven shared a post asking people to reveal financial tactics they've stuck with that need to be left behind. Whether it's something as profound as turning down raises out of the fear of tax or something as simple as shopping at dollar stores, people truly believe that they hold little to no value in today's lifestyle and can add to financial unstability. With over 1,200 responses coming in from young and old adults, these 10 habits are the ones to keep an eye out for.
1. Not investing in yourself
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2. 'Paying a little less to get a lot less'
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3. 'Just save money'
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4. 'The stock market is just like gambling'
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5. Refusing salary raise due to tax
"Turning down raises because 'it means a giant jump in my taxes.'" -u/USSMarauder "Understanding Tax Brackets (in the US) in general. Can't tell you how many times I heard mention that their raise/Overtime/Bonus will just be eaten up by taxes. Fine, I'll take your raise and pay the taxes. No one ever went broke paying taxes." -u/ri89rc20 "I had an employee ask to reduce his offered raise because he would have to pay more for medical insurance. The amount he would have had to pay was about $200 more annually, pre-tax. The amount of raise he turned down would have been 3k gross." -u/HamburgerRenatus
6. The luxury of living alone
"The expectation of living on your own so most of their money goes to rent or mortgage instead of investing." -u/Bjartdauth "It's such a scam! I don't know why I have to be judged for living with my parents. In every other country, families are together and its not a weird thing. And it's not like the friends who judge me weirdly about it have ever asked me to live with them instead. I don't desire to be lonely or poor. So I'll build my wealth in peace!" -u/Bjartdauth
7. 'Hard work only will lead to wealth'
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8. Avoid earning with better or more jobs because of tax
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9. Being foolish with credit cards
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10. Not prioritizing education in the long term
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