11 Money ‘Rules’ That No Longer Hold True
In finance, as in many other realms of life, certain bellwether ideas some viewed as written in stone are being either challenged or completely overturned. On the back of shifting societal norms, technological trends and a changing economic landscape — our personal strategies have to move in tandem. So, here are 11 money ‘rules’ that no longer apply in the world of today.
1. Save 10% of Your Income Badly
The traditional advice was to save a certain percentage of your income. But everyone has different costs of living and financial objectives, so a cookie-cutter solution might not work. There is a growing push for people to save based on personal need.
2. Paying Your Whole Credit Card Balance Every Time
It’s not good to pay interest at the end of a month because you still owe on your credit card, BUT if used properly (ie. don’t go crazy) it can actually be beneficial as paying off things over time builds up your credit score. Alternatively, as long as you are managing it well a small balance can sometimes help your credit profile.
3. Debt is Always Bad
A different view of debt has emerged, especially in the context of investing. Strategic Debt: Not all debt is bad — using loans to advance your education or finance an investment property can help you get ahead. Now the new call is not about shunning debt altogether, but managing it thoughtfully.
4. You Dont Need Insurance untill you Become Older
Insurance is an afterthought for most early in life. The truth is that getting insurance at a young age can save big later on in terms of premiums and keeps you protected for when the unfortunate events happen.
5. A Home is A Great Investment
Real estate, for instance can be a profitable investment but thinking that owning a home is always so financial-savvy is misleading. Scenario 2: Market fluctuations & personal circumstances House prices rise and fall with the market, inflation rates or other economic factors.
6. The Best Time to Invest — You Should Just Wait
Fourth, trying to time the market is a fool’s game. Instead of trying to time the market at its all-time low, they suggest that you keep going on as usual with dollar-cost averaging for a long-term buy-and-hold approach.
7. Utilizing the Services of Finance Advisors not for Everyone
Once upon a time, financial advisory services were considered to be strictly in the domain of the wealthy. But today everyone has access to these resources and platforms, regardless of income level — there are few secrets when it comes to good financial guidance.
8. Retirement Planning Can Wait
It is easy to believe you still have a lot of time to ponder retirement. But saving even small amounts early can grow into a significant amount over many years. We can all start new years resolution any day from today and what better time to plan for your future than now.
9. A college degree is required for Success
Education is important and opens doors, but going to school isnt the only way of being successful. There are also trade schools, online courses and self-taught careers that can keep you out of debt .
10. Cash is King
As new forms of payment continue to evolve, such as digital payments and cryptocurrency, the idea that cash is king will come under further scrutiny. There are some advantages to cash, but that flexibility of payment types help you upgrade financially in the current economy.
11. The cheapest price is the best deal every time
Although, good amount of frugality is necessary ,but concentrating only on price often leads to buying piece-meal quality. To spend wisely, it is sometimes better to look at the value rather than just dismissing things as expensive and moving on solely by grabbing what seems available.
The financial landscape is consistently evolving, and one of the most important things that people should do, regardless of their age or stage in life is reevaluate long-held beliefs about money. We can all toss away rules out of fashion and adopt modern principles to help train our brains in personal finance.
