You’ve probably heard a lot of different ways to live a successful financial life. While some of the things you’ve been told might be true, there are a few fabrications as well. Here are 4 common money myths, debunked.
Myth #1: You can wait to start saving for retirement.
It can be tempting to put off saving for retirement while you work on paying off student loans, or saving for a bigger house. But having time on your side can actually be one of the best reasons to begin saving for retirement now, rather than later. Consider opening an Individual Retirement Account (IRA) as a way to prepare for retirement. The earlier you contribute to your golden years, the better off you will be!
Myth #2: You can budget by keeping track of everything you spend.
Keeping track of your money is important, but the efforts are useless if you don’t have a good budget in place. What does this mean? Setting firm but realistic spending limits for yourself.
Experts say that you should be contributing 50 percent of your income to the essentials – housing, food, transportation costs and utility bills, 20 percent dedicated toward savings, and 30 percent to personal expenses. If you aren’t following these guidelines, consider rearranging your cash flow.
Myth #3: You don’t earn enough to save.
The truth is – anyone, even you, has the ability to build a substantial savings account. If you are starting from zero, it is an uphill battle – but entirely possible.
If you feel that you don’t earn enough money to pay your bills and save money, visit your local SeaComm branch and speak with a Financial Service Representative. A SeaComm FSR is able to work with you on developing an appropriate amount to automatically transfer to your savings whenever you get paid, allowing you to save without emptying your wallet.
Myth #4: Cash is the way to go.
While paying with cash is often referred to as a great budgeting tool, it’s not as safe or effective as you may think.
SeaComm Debit and Credit cards provide you with fraud protection, and allow you to earn points and cash back for every dollar you spend. If your card is stolen, SeaComm will cancel it and issue you a new one. If your wallet full of cash is stolen, then you’re out of luck.