There’s plenty of advice about money out there but not all of it rings true. Here are a few things that people say and believe about money which isn’t always right. The last thing you want to do is to follow the wrong advice.
Buy now, pay later
Being able to afford monthly payments for bigger items might sound like a great idea but, when you take a bigger overview of it, what it really means is that we are paying out more money over a longer period of time. The flip side of it means that we have even less money available to put towards other worthy financial goals. Having a car, 4K TV, new furniture, kitchen appliances and the latest mattress might all have relatively affordable payment plans but add them all together and they are probably more than the mortgage you are paying. Unlike your house, these items are unlikely to increase in value, but we pay out vast sums for them all the same.
Having a credit card helps your credit
Having a credit card with a constant balance on it is different from using a credit card and paying off the monthly bill on time. Any balances you maintain on credit cards only end up attracting interest and making it more difficult to pay off.
There’s no such thing as free money
When people say there is no such thing as a free lunch, or an offer is too good to be true, they obviously haven’t read Martin Lewis’s money saving tips. There are many money opportunities available to you without the risk. This could be transfering credit card balances or getting money deposited just for changing bank accounts. There are also ways you can save by utilising money back offers by shopping through particular websites like Quidco or Topcashback. Another good example would be the range of free bets you can take advantage of on Oddschecker. Bookmakers often like to shake things up with free bet offers, meaning risk-free bets where you don’t have to spend your money. It’s not complicated to use either. Then there is saving money on things you already use, like changing your energy supplier or amending your tariff.
A credit card can be used in an emergency
Just like building up a credit card is believed to help with maintaining a credit score, using one in place of a real emergency fund is misplaced too. While it offers you the chance to pay for things when cash is short, you’ll have to repay this debt somewhere down the line. Meanwhile, an emergency fund will be there to pay off those roof leak emergencies without it affecting your day to day finances.
Not everything you are led to believe about money is true. Often it makes sense to look at the bigger picture of your finances to see what you are paying out in the long term and to look into any offers carefully, because some are actually highly beneficial.