The most common myths about money #2

There is a lot of talk around personal finance. Which information is true, and which are just lies? Today, we're going to debunk 4 more myths, in the second article of the Money Myths series.

Myth No.1: You don't earn enough to save

There are a number of of people who have more than superior income, yet they live from paycheck to paycheck. Whether you want to save on retirement, or to invest the money you have saved, the amount you can put aside depends more on your ability to manage the family finances than on the amount of income as such. Of course, in some cases, indeed, the amount of an individual's income may not even be sufficient to to cover basic needs, but in most cases the problem of saving is somewhere else entirely.

Myth No.2: Investing is for the rich

Contrary to what many people mistakenly believe, investing really isn't just for the upper echelons of society. In today's world, there are so many options of how and what to invest in that everyone can choose, even those who have only 20 or 50 euros extra per month. Our clients have the opportunity, through the platform Investment Slovakia, invest from a one-time investment of €100which gives the opportunity for absolutely everyone to participate, subject of course to age and other legal restrictions. Moreover, investing in real estate crowdfunding is one of the safest forms of investing, making it suitable for both more experienced investors and beginners.

Myth No.3: It is enough if only one partner manages the family finances

Wrong! Family finances are, as the name implies, a family affair, so if you're playing play a secondary role in managing your family finances, show a little proactivity and take an interest, to money goes each month and where you as a family put the rest of your savings finances. If you are on the other side of the equation and the whole control of the finances is on your head, show some interest in working with your other half, and, if necessary, let her in on the ins and outs of family accounts and regular expenses.

Myth No.4: 2020 is the year of the "cashu"

Even nowadays there are still many people who believe in storage savings in paper banknotes under the mattress, at best in a safety in a safe deposit box. The main problem with this approach is the fact that each year you lose 1-2% of the real purchase value of your deposited money. This is due to inflation and year-on-year movements in the prices of basic goods and upwards.

In general it is true that part of the savings you should keep in a high-liquidity bank account, and you should keep some of your money in investments. Liquid bank accounts include, for example, traditional current accounts, or savings accounts with the possibility of immediate withdrawal of funds funds.

That would be all for today. If you enjoy reading our blog articles, don't forget to keep following us. In the next article, we will take a closer look at the term "Portfolio Diversification".

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