#1
Something is trickling down on us, but it's not money.
#2
#3
Skip the middle man and donate directly.
About a week ago, a thread appeared in the AskReddit community, the author of which asked people the question: "What’s the biggest financial myth people still believe that’s actually hurting them in today’s economy?"
As of today, the thread has already collected more than 2.6K upvotes and nearly 1.4K various comments describing all sorts of "money misconceptions" common to people. The misconceptions range from strange to funny, from relatively harmless to very serious.
#4
#5
#6
You're paying a little less to get a lot less.
Many of the "financial myths" presented in this collection are related to outdated ideas about money and economics, and some are simply based on the fact that the economy is a very complex system, and even industry experts sometimes find it really difficult to understand all the intricacies of its work. As a result of a simplified understanding of the economy, erroneous judgments are inevitable.
#7
Like seriously. If every immigrant, legal or otherwise disappeared tomorrow, it wouldn't do a single positive thing for me personally, much less the wider economy.
#8
No they don’t. If the company folds they claim bankruptcy (difficult, expensive, long process for normal people, easy for the wealthy who have lawyers on retainer who specialize in it) and go try again. They really don’t have any risk once they hit a certain level.
#9
Get a card with good cash back rewards and use it for everything. I mean everything. If you can pay your rent, bills and insurance with it do it. If you can use it for work and they reimburse you, do it.
Pay the balance off at the end of every month and make sure you keep track of your ins and outs. It requires you to be responsible but in the end its worth it.
I get at least a few thousand dollars a year worth of cash back to do with as I please. Trips, PS5, etc.
Sometimes I use the rewards to pay my balance, and take the funds I had allocated to pay off the balance and put them in my RRSP and take the tax advantage.
"Economics has evolved a lot in recent decades, and the concept of money has evolved too," says Olga Kopylova, Ph.D., an associate professor of economics at Odessa National Maritime University, whom Bored Panda asked for a comment.
"For example, various 'financial advice' from the middle of the last century was based on gold-backed money - and modern money is almost contraindicated to be withdrawn from circulation."
"Therefore, the 'financial wisdom' of our parents or grandparents - depending on our age - was completely reasonable decades ago, and vice versa, literally following it will only lead to financial losses today. At the same time, the force of inertia of human thinking is still very strong, and we think - if it worked before, why shouldn't it work today?"
#10
#11
#12
"But the economy is a very volatile system, and a lack of understanding of its basic concepts, the laws of economic development, also leads people to a bad financial result. The problem is also that economic laws cannot always be reduced to simple rules accessible to all people without exception - and this also contributes to the emergence of such 'financial myths,'" Olga sums up.
The modern world is really so fast in its development that certain laws and principles sometimes manage to become totally outdated in just a few years. Which once again emphasizes - for each of us, for each individual situation, there is a winning strategy. But it is not a fact that blind and thoughtless copying of it will also lead anyone to success.
#13
No. You need to do more. Most savings are not beating inflation. As a result your money is shrinking by doing that. One of the most insidious ways our money is effectively being stolen is just by having inflation make it worthless by the time you'll go to use it.
The easiest thing I am aware of is to put it in an index fund that automatically reinvests. These are automatic funds that follow a set algorithm of stocks (an index) and do not have a human element in the decision making. They regularly outperform professionals. They typically do very well compared to inflation, and require zero maintenance.
Check if your work has a retirement matching program and use that. It's literally free money and it adds up faster than you think.
There is no such thing as "too soon to start thinking about your retirement".
#14
#15
Deserves has nothing to do with it.
That is why, for example, it makes sense to read biographies of great business people and investors - to be inspired by their energy, their irrepressible desire to go further, and their pushing the boundaries of the possible.
But at the same time, you should always remember that you can't copy someone else's success, but it's very easy to copy someone else's mistakes. So now please feel free to read these stories and opinions - and perhaps add your own thoughts in the comments below this list as well.
#17
It’s your equity that matters.
#18
#19
Investing doesn't always have to be some major cash return. It could be education, making your life easier so you have more time and energy, or simply relaxing. I know a lot of people that played the frugal game and just now getting out in their 70s.
#20
I hear it over and over again. It's just not true at all. Someone can spend like an hour of their time and watch a couple fo Youtube finance videos and understand the basics.
They can open a brokerage with very little money (Like $100), They can then set up automatic deposits that follow them for their entire career, investing in their own financial security.