Money doesn’t grow on trees. Hence, a lot of people try to think of ways to earn and to keep money. A few people would build their own business while others would get a job. Since money is easily spent for consumption and leisure, they try to set aside a certain percentage of their earnings for a savings account. Some people get themselves scholarship grants to save money while others apply for a retirement plan.
David Barcomb’s Beliefs on Monetary Myths
With these financial concerns, people would most likely encounter financial myths. These myths are often made to either explain matters that cause them anxiety or give themselves some sort of relief in the midst of uncertainty. David Barcomb, a well-known financial advisor, does not believe in a single thing among these financial myths. He has focused on asset management and emerging business for almost 25 years, so he knows very well if a certain issue or myth is true or not. He thinks that financial myths are better researched on or just discarded. Financial planning should be guided with facts, data, and statistics, and it should not be affected by any misconception.
Financial Myths Ought to be Rejected
To achieve a financial mindset like that of David Barcomb, here are five financial myths that a person needs to reconsider:
When you get married, you have higher taxes.
This is not exactly true. When two individuals marry, they would be filing their taxes jointly. This means that two people would be paying taxes in the amount not as much as that of a single individual.
Each person needs to have a large emergency fund
Having a fat emergency fund is ideal but not necessary. Financial planners advise on having an emergency fund that would sustain a person for three to six months. Not everyone could set aside a large amount of money for emergencies. Even if a person can, it could take a lot of years for him to do that. It is advised to have a starter emergency fund of $500. This way, a person can still spend money on consumptions and debt repayment.
Pay debts first before you save money
Debts can be paid first, but a person may not have sufficient money left to pay for unexpected emergencies. It is best to pay debts regularly and, at the same time, save a certain amount of money.
Expenses are cheaper during retirement
On the contrary, the cost of expenses could even be bigger when you retire because of inflation. Medical expenses may also be added to the usual list of expenses of a retiree especially for old and sickly ones.
A student can save more with scholarships
Scholarships are just one way for schools and organizations to let students think that they can save a great amount of money when, in fact, their grants are actually reduced by a dollar gradually.
In order to plan well on financial matters, a person should be aware of the different misconceptions of money. One needs to be smart, objective, and resourceful. If doubts occur, a person can always seek help and pieces of advice from professional financial advisors such as David Barcomb.
