Kicking Off The Three Most Common Finance Fallacies That've Been Disproven

Personal finance is like caviar for most people. Some like it the first time they taste it. Some hate it forever due to a bad experience, leaving a bitter taste in their mouth. But unlike caviar, personal finance is necessary. Many people find personal finance troubling because they believe these three silly myths you might find hilarious yourself.

Finance Are Huge Buildings And The Market

Personal finance isn't the New York Stock Exchange or having to walk into an insurer's building to inquire about your possible financial future. Finance isn't even these things too.

Finance is all about you and your wallet. It is about handling your personal finances and your unique situation where you have a positive and disciplined attitude towards your money.

Lots of Maths

No, personal finance does not involve any sort of complicated mathematics. Some perceive that you have to be a grade A theoretical mathematics expert to be good at personal finance.

To be honest, all you need is just the basic knowledge and equation of your interest growth. You may find online calculators for these. But for everything else, it's all about adding and subtracting, and knowing how much you can spend per period.

Jargons And Investing

Investing can be an integral part of personal finance. However, it isn't always necessary. Investments guarantee that your money continues to grow passively as you grow older. Once you have created a budget, investments come in second.

Some perceive that in order to invest, you need to understand the lingo of personal finance, which isn't exactly true. You do know the basic terms, as these are often explained when you're about to take on an investment or insurance policy.

But here's a bit of a clue; the simpler the terms used in your financial contract for a product, the better that product truly is.