Personal Finance Misconceptions

The Market is going to crash, sell now.

Don’t save for college, you won’t receive financial aid.

Personal Finance Misconceptions:

Face it, we’ve all heard many different misconceptions when it comes to personal finance.  In order for people to gain a better understanding of their personal finance picture, it is important to identify which ones might lead them in the wrong financial direction.  Once properly informed, people will be able to make sound decisions regarding money and will be better off financially.

In addition, there is a great deal of confusing and conflicting information which come from many different sources:

Finance Misconceptions and Investing

  • the Tax Code
  • the Investment Industry;
  • the Insurance Industry;
  • Co-workers;
  • Family; and
  • Friends.

Another common way people develop incorrect financial conclusions is by observing other people.  Very often you might see a family member or friend with really nice things and an expensive lifestyle and you think that is what you should be doing.  However, what you can’t see, is what lay underneath this perception.

Do they have so much debt that they are in desperate financial situation? Did they get an inheritance? People almost always put on a good face. They will tell how much they won at the casino last weekend ($2,000), but they won’t tell you, or even admit to themselves, that they lost $10,000 gambling last year. The same is true with things like credit cards, mortgages, and student loans. When you look at other people, you can see the jewelry, the house, the graduation party, but what you can’t see is how those things were paid for.

Goal of Personal Finance Values Blog:

From everyday spending, to purchasing decisions, debt management, investments, insurance, how much to save for retirement and college, and estate planning, this blog is intended to help people come to their own intelligent conclusions with financial decisions that fit their own situation.

So What’s Next:

With the Fall season comes SAT exams, FAFSA applications and the overall thought process behind college tuition.  How should I save for college?  What are the costs? Stay tuned for part one of a two part blog about College Savings Solutions.

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