MONEY MYTH BUSTERS

There are a lot of money myths out there. Tips & tricks that you might think are true, learned about from a friend, or saw on the internet. Those facts are in fact, not at all true. Let's bust some money myths!

One of my favorite things to do is help my clients recognize these money myths and bust through them. Today, I am going to share three money myths that I've been asked about of the last 3 months.

Let's talk CLASSIC money myth's and what the FACTS actually are.

1. NO CREDIT IS NOT GOOD CREDIT

Bad credit can affect you in many ways, such as having difficulty with credit applications, challenges on denial in being approved with housing, or even employment–yes, these days some employers even check your credit score before hiring! But what about having no credit? It may surprise you that having no credit is just as bad, especially when wanting to be approved for a credit line to establish credit. So what in the heck should you do? 

"you have no credit history, your credit score isn’t zero. Instead, it’s nonexistent"

Fortunately, there are credit cards set up for no creditors folks such as secure credit cards that establish credit. This starts with paying your bills on time, and linking your bills to credit bureaus to develop good payment history so your credit gets on track! 

If you are looking to get started with credit cards, research the best option for you using the Nerdwallet.com credit card tool, giving you the best cards of 2022. The other options is their credit card comparison tool which allows you to directly compare benefits of multiple cards at one time. 

2. YOUR CREDIT CARD IS NOT AN EMERGENCY FUND

Rainy days happen. But this does not mean that you should max out your credit card for the sake of your security, and then deal with negative repercussions on your financial history. Remember credit is borrowed money, not your money. 

Having an emergency fund is crucial in order to not do this. Check out out free full tutorial on emergency funds and how to start funding yours for the time when life happens. 

3.  YOUR 9-5 IS NOT A BAD THING

I LOVE MY 9-5! We don’t hear about this often enough–how has responsibility become a taboo?! For the past 5-10 years, it seems that, “Work from home and travel the world” have become more and more glamorized; however, this “work lifestyle” may not actually be as appealing and admirable as you may think. 

In the modern world, an entrepreneur's schedule may not feel like freedom at all. The facts? You're still working just about the same amount of hours as a 9 to 5, if not more. The catch? Instead of having a set schedule, you create yours–but unless you have very firm boundaries and assistance, having a healthy consistent schedule may be much more difficult to achieve. Or non-existent for all you free spirits out there! 

Also, say goodbye to benefits. Ouch! Working for yourself tends to come with a lot of hidden responsibilities, such as finding independent dental/health insurance. Also? Prepare to balance your own books, and tax responsibilities. Sweating yet? So before you quit your 9-5, consider the amazing perks and benefits of a structured schedule, sick time, and paid time off. 

Protect your money and stay head of those money myths. Keep the the fundamentals of money and continue using financial literacy to fuel your financial game. Grab our FREE 12 month financial coaching guide to get your started on your budget, goals, and savings plan.