Introduction
Saving money isn’t that hard. You have heard so many negative stories about saving money, many of the people who work 9 to 5 stating that you can’t save money and invest it when you are in a 9 t0 5 job.
Here I will bust 7 myths about saving money that you are believing till today and what is the truth behind the myths.
Also, I will give some tips on how to save money from your teenage years and leverage it and save some percentage of money in the right way.
1. You need to earn more money to save money
This is one of the common myths that many of them are saying even though I have read many of the blogs.
Is that actually true? Yes, to be frank, it’s theoretically true when there is a big money flow you are getting there will be more money saved and can be invested.
But see this doesn’t mean that you don’t need to learn about money, Personal finance when you earn a small amount of money.
This has nothing to do with learning about finance. Let's say that you may earn more money in the next few years. Are you going to spend your time in that period learning about finance and investing?
I think the answer is “No”. Start saving and investing as little as you can, start learning about finance and making money and investing as earlier in your life which will have a great impact on your future.
2. Avoid fun and save money
This is one of the biggest myths: you are born to enjoy your life, you have only one life.
What are you going to do if you avoid all your fun activities and save your money? Is this pointless right?
Having a daily or monthly budget can help you to overcome this problem and this is the major problem many of them are facing. You try to save money but you fall into instant fun and joy that your mind says and suspend all your money.
Having a budget you can use apps that are available to control this problem and have the fun that you want without losing so much money.
3. Investing is tricky
This is also a common myth out there and many of them fear investing. What if I lose all my money?
There are two types of investment, one is a safe investment like Mutual funds, Gold, fixed deposit etc.., and the other one is risky investments like Cryptocurrencies, Real estate and Foreign Exchange.
You have to choose what is right for you. If you're starting out you can go with safe investment areas like mutual funds where you don’t need to worry about your money.
Whatever you are investing in, you should do research before investing, learn the market and be updated which will help you to do everything by yourself. You don’t need to ask for any other opinions.
4. Save more money for an emergency fund
The four months of your living expenses are what is called an emergency fund. Maybe 5 or 6 months is a rare case.
But what we do is save money for an emergency fund for 5 or 10 years. This is one of the dumbest things you are doing.
You don’t know whether you will live tomorrow or not, whatever can happen anytime.
So don’t pour all your earnings into your emergency fund only save for 4 -6 months that is what an emergency fund is.
Try to invest your money in other investment options like Mutual funds and even invest for your own business don’t put all your money in E-funds.
5. No plan for the future until the debt is cleared.
This is also another myth that most of them say that I have debt so that I can't save money.
Yes, having debt is horrible but it doesn’t mean that you can’t save money and pay all your money to your debts.
Even saving $30 per month can make a change. This is important. I am repeating again that whatever the position you are in, don't stop educating yourself about finance, money and investment.
The situation is going to change, it's not going to be the same.
Conclusion
Start right now whatever money you have, start learning about money and the investment market and their risks.
If you are a student reading this, you are at the right time to start investing and learning about money. Don't waste your money on unnecessary things. Start investing.
Happy Earnings!
🔖 Also read: How to earn money from Facebook in India