There are some money myths that have been passed down through generations that just aren’t true. Once you stop believing in these old-fashioned ideas, you will be on your way to financial wellness.
Bankruptcy Gives You a Clean Slate:
Bankruptcy can be a solution when you are in over your head financially. However, it doesn’t make everything magically better. Some expenses like child support and student loans aren’t forgiven when you file for bankruptcy, so you are still on the hook for those. Bankruptcy also shows up in your credit report for up to 7 years, making it more difficult to get approved for borrowing in the future.
All Debt is Bad:
No one wants to have mountains of debt looming in the background. But a small amount of debt can actually be good! Showing that you can pay back the money you borrow and do it on time builds your credit. Many individuals choose to take out a personal loan (like those provided by SkyCap Financial and other lenders) at some point in their lives in order to make big purchases like going to university or buying a car or house.
Budgeting is Hard:
Making a budget used to mean poring over your bills and bank statements, hoping that you didn’t mess up any data entry on your calculator. Now, there are so many tools and resources you can use to help make the process easier. From budgeting apps to automatic withdrawal, they help you crunch the numbers and allocate your money correctly with minimal effort on your part.
Many people get their financial advice from misconceptions that were passed down to them from their parents or grandparents. Now that we’ve debunked a few of these myths, you have more tools to create a brighter financial future for yourself!