There are two ways we all look at money. The first comes from how we have seen money in our early days. It is about how we have seen our parents earn and spend money. The second view is generalized wherein we believe – to earn money we need to work hard. Somehow the latter view has been engraved in our genes. Hence, we keep on working hard to make more money.
You must be thinking that we will now say that you don’t need to work hard to make money. We are not going to say it. You have to work hard. However, you don’t have to work hard all your life to make more money. If you can make the right investment decisions, you can surely make money without much effort. For that to happen, you must know realities related to money.
In this article, we will talk about the most popular money myths.
Only riches invest – As we mentioned above, most people think that we need to work hard, become rich, and then we can invest money. If you are investing, you will not find this as a myth. The sad truth is many people believe only riches invest money and others work hard.
Everyone can invest. If you earn Rs 10,000 per month, you can start your investment with Rs 500. If that seems high, you can invest as little as Rs 100 in mutual funds and the equity market. We request all our readers – don’t delay investment. No matter how much you are earning, invest a small percent of it in the equity market. Only those who invest money become rich. So break the shackles and start investment.
Money investment is a risk – Most people believe that risk is risky, and hence they keep most of their money in a savings account, fixed deposits, or cash in the home. Yes, people are doing it as they consider equity investment too risky.
It is a natural human tendency to consider everything unknown to us as risky. For the same reason, we are scared of darkness. However, once the light is on, we see where we are and are not afraid. The only difference is the light – the light of knowledge. Investment is only risky if you don’t understand it and do it unprepared. So is driving the car if you don’t know driving. You first learn driving from experts and then take the car out on your own to enjoy long drives. If you have zero clue about investment, check out Jarvis.
There is no real need for an emergency fund – Every financial advisor will tell you to have emergency funds. Sadly, most people never create emergency funds. The reason is that most people never face the need for it in a lifetime. But for those who go through an emergency, their life is turned upside down if there is no support. One cannot take such a risk. Having money for an emergency is the first step in any investment journey. You should have an emergency fund before you invest a single penny from your income.
Investing in Gold and Real estate is the safest and best investment – Do you believe the same? If you do, you are part of the group that believes in one of the biggest myths around money. A large population of India invests in gold. They look at gold as a long-term wealth creator, whereas it is not. Yes, gold is a good investment, but you cannot create wealth only by investing in gold. The same holds true for real estate. Yes, they should be part of your portfolio, but 10-20 percent at max. If you really want to create wealth, you should invest in the equity market. If you want to move to equity but are clueless, you should check Jarvis Invest. We simplify investing for you.
One should not talk about money problems – It is one of the unsaid money rules that one should not talk about financial struggles. Money is a very personal topic and subject to scrutiny and judgment. Staying silent about your money problems can be worse than talking about them. If you regularly talk about money, it can help you solve problems that may eventually affect your relationship and health.
There is the right age to invest money – The last on the list but the biggest hindrance in the path of financial freedom. Most people don’t invest in their 20s because they have just started earning and want to explore the world. Many in their 20s believe investing is for old. Those in their 30s have a family to take care of. Hence, investing seems demanding. By the time you are in your 40s, you understand the importance, but it is very late. There is only one right age to invest. It is NOW. You have to see the magic of compounding. If you have, we are sure you will not delay investing by even a single day.
We are evolving fast as a society and as a nation. However, these and many more money myths have to be disbanded. Everyone should invest the money as there is no other way to be rich. You don’t need a master’s degree in finance to understand money and investment. All you need is a little understanding of how it works. If you can spend time to bring awareness within yourself, your money can surely do wonders for you. We hope 2022 is one such year for you. May you overcome all money myths and make the right investment decisions.