What’s your biggest goal?
If you’re anything like most people who set New Year’s goals, you certainly want to achieve financial freedom. This is the one thing the average American badly wants, and for good reason.
It’s a different kind of freedom when you’re financially free. You can go wherever you wish, do whatever you want, without fearing the financial consequences.
It’s possible to achieve financial freedom, but it starts with getting your personal finances in order. This means getting the right personal finance education.
In this article, we’re dispelling the various personal finance myths that are holding so many people back. Read on!
1. Student Debt Is Good Debt
For most people, college is where financial rain started beating them.
If you’re battling student debt, you understand this so well. Many people find themselves in student debt because they believe student debt is good debt. After all, education is the key to a bright future, right?
Well, not all student debt is good debt. If you’re taking student loans to purchase a degree without any strong marketability, you’re probably not making the most of your loan. Sure, it’s important to get an education, but in these economic times, you need an education that can pay for itself over time.
Before taking out a student loan, ask yourself whether the education it’s financing will lead to a career that pays.
2. You Don’t Need a Budget
You’ve probably spent most of your adult life without a budget. Whether this was because you believed a budget is unnecessary or you simply didn’t give a hoot about budgeting, we can’t tell.
However, if it was because you believed a budget is an unnecessary tool, you’re dead wrong. Some financial experts actually say you don’t need a budget to be a prudent money manager, which can be true, but it requires a high level of financial discipline to succeed without a budget. The average person doesn’t have this level of discipline.
Never let anyone tell you a budget is useless. In truth, it’s a handy tool that will help you keep your spending in check.
3. You’re Too Young to Save for Retirement
When you’re in your early 20s, 65, which is the average retirement age, looks like so many moons away. It’s a long time, no doubt, but not too long that you shouldn’t be saving for retirement.
As any financial planner will tell you, you’re never too young to start saving for retirement. The thing about retirement is you need a lot of money saved up – some experts put this figure at $1.7 million. To reach this figure, you need to start saving (and investing) as early as you possibly can.
You Need Personal Finance Education to Beat the Myths
Getting your personal finances under control is one of the most deceptively difficult tasks to pull off, but it’s doable. With the right personal finance education, you’ll be in a good position to bust the myths and takes steps toward financial freedom.
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