Money and myths have a long history together. Everyone has a myth, knows of one and is happy to share it. First, most are simply myths that have been passed on down through the generations. Second, they may have been rooted somewhere in truth, or have come about via advertising, but their time has long since passed.
Here are a few of the most common myths and why they should be put to bed:
Myth One: I don’t need to worry about our budget or finances because my partner manages the money.
- You should know what your financial situation is, where your accounts are and have access to banks, investments and credit accounts.
- Sit down every month to review your goals, budgets and finances.
- You could be just as responsible for financial mistakes as your partner and ignorance is no excuse.
Myth Two: Tax Free Savings Accounts can only house GICs or bank accounts.
- The list of investments is the same for other types of registered plans like RRSPs or RRIFs.
Myth Three: I’m too young to think about saving for retirement.
- The best time to save for retirement or other future goals is when you don’t need to worry about them. If you start early, you have more time to invest.
Myth Four: I’m too old to start a financial plan.
- You’re never too old to start getting your finances in order. You may need to adjust your retirement date, but it’s never too late to create a plan to achieve your modified goals.
Myth Five: Everyone should do everything they can to buy a house.
- To rent is a lifestyle choice and if you’re happy with it, stick with it. If you stay out of debt and invest to build up your net worth, then the rent option is perfectly fine.
Canada’s Money Coach has the answers you need. If you think you’re being confused by money myths, you probably are.
Give me a call. Let’s set up a meeting and we’ll blow those myths away. 613-875-5834