Growing up, we were all exposed to various money myths by our parents, relatives or siblings. Fortunately, most of these myths are not true. Or let’s put it this way, times are changing, so methods that may have worked in the past may not necessarily work now.
I know we’ve been encouraged to believe them but if we really want to move forward financially, we need to be aware of these myths on money and wealth so as to avoid them.
1. Working Hard=Getting Rich
Many people think working extremely hard, day and night or having a day job will make you wealthy. Don’t get us wrong, it’s great only if when doing that, you have a projected plan of how this would help you reach financial freedom in time.
No job is guaranteed, so you cannot rely on the fact that a job will make you rich. As cliché as it might sound, it’s more advisable to ‘’work hard and work smart’’. Else, you’d find yourself working hard but still having to live from salary to salary.
These are mistakes the older generation made and can be avoided. Work hard and have a financial plan for your future.
2. You Need Money To Make Money
Yes, many people say you do. But the simple fact is that you don’t always need money to make money or start a business. You often hear people give a common answer; “I don’t have money; it takes money to make money’’ when asked about their plans for their future.
A way to solve this could be you coming up with the right idea and then, finding other participants to contribute cash or resources for percentages of ownership. The point here is you do not always need your own money to make more money. You can use other people’s resources legally, and be financially stable.
3. Investment Is Risky
Everything you do has a risk in it; life itself is a risk. The best way to mitigate these risks is to educate yourself and same goes for investing. It becomes less risky if you know how to make educated decisions.
You can educate yourself by reading books, attending seminars, speaking with professionals or researching about it. Having to rely solely on people’s opinions about investing is the first step to failure.
We should be conscious of these myths and replace them with facts.
3 Ways To Invest From Your Smartphone For Under $5
The numbers say 80% of millennials don’t invest in stocks.
Reason? Half say they don’t have money, one-third says it’s too early and another third says they don’t know how.
In addition to that, there’s demographic gap. “The average age of a financial advisor is 55,” said Douglas Boneparth, a New York City-based financial planner. “There are more financial advisors over the age of 70 than there are under 30.”
Despite these beliefs, you don’t really need much money, nor experience, to get started. (Just look at our fearless co-founder Odunayo Eweniyi and what she’s pulled off here)
Be that as it may, here are three ways to get started for $5 or less.
What: A micro-investment app (iOS and Android) with over 30 ETFs according to industry, sector and risk tolerance.
How it works: Download the app and choose your investment.
Minimum investment: $5
Cost: Fees range from $1 a month for accounts under $5,000 to 0.25% a year.
“We help people who don’t have a lot save money on a weekly basis,” CEO and co-founder Brandon Krieg said in one interview. “Stashers look like America, they look like people you meet every day: they are nurses and teachers and Uber and Lyft drivers.”
What: iOS and Android app.
How it works: Download the app and choose one of six index funds. When you buy, say a cup of coffee for $1.75, it rounds up the change to $2 and deposits the difference.
Minimum investment: $5
Cost: Just like Stash, fees range from $1 a month for accounts under $5,000 to 0.25% a year.
“We’re not trying to preach austerity to the client, because that’s a bummer,” CMO Manning Field says. “Some people will say, ‘Don’t have the cup of coffee.’ We’ll tell you to have the cup of coffee and invest along the way.”
What: A commission-free investment app (iOS and Android).
How it works: Download and start buying stocks.
Minimum investment: Whatever stock you want to buy.
And by the way, if you want to get a fast start on real estate, here’s Forbes’ list of nine REITs with yields between 8% and 10%.
CHART: How Blockchain Powers Bitcoin
Blockchain, Bitcoin. Bitcoin, blockchain.
The two terms go hand in hand—and have become almost ubiquitous with this year’s insane rise (and fall) of Bitcoin.
But what does it all really mean? How does it come together? In this week’s chart, our friends at CB Insights break down exactly how blockchain powers Bitcoin.
VIDEO: Shark Tank’s Mr. Wonderful Demonstrates Compound Interest
How young should your children be when you start teaching them about money? How should I teach my children about money?
The key to children and money is explaining what it is to them early in life. Shark Tank’s Mr. Wonderful, Kevin O’Leary, answers all these questions with this tip on explaining compound interest to your kids.