Bad advice is everywhere, especially when it comes to money. It’s always a good idea to take any advice you receive about money with a grain of salt and do your own research. It can save you a lot of trouble and heartache. Here are some common myths about finances we commonly hear:

Myth #1: “You Have To Keep Up With the Joneses”

What’s right for another person is not always what’s right for you or your family. There’s always new technology coming out, and lately keeping up with the newest tech means upgrading even more often than before. While it’s always tempting to have the same toys as your neighbors, it’s almost always more sensible to work with what you’ve got – especially if it’s still functioning. We’re not saying you can’t treat yourself or even upgrade your technology. But put it in your budget and save up for it – the item will be so much more precious to you because of it! Don’t go into debt chasing what other people have – it won’t bring you happiness.

Myth #2: “You Can Skimp on Some of the Essentials”

While it makes sense to cut corners in the budget here and there, you should never skimp on something essential. Whether it’s health, car, or home insurance you will thank yourself later for spending the money on it now. The last thing you want is to experience a tragedy such as your home burning down, and be left with no home and no way to pick the pieces back up. While it may be a bit painful to part with that money every month, it’ll be a lot more painful to be without insurance when the unexpected happens.

Myth #3: “Savings Can Wait”

Don’t wait to start saving until you get that new job or promotion. It’s always better to start sooner rather than later. Even if it’s a small amount from each check, that’s more than there was before. Seeing your savings increase paycheck after paycheck will help to motivate you to save even more money!

Myth #4: “My Partner Can Take Care of the Finances”

You should always have open communication when it comes to money in a relationship or marriage. It’s ok for another person to take the lead, but everyone in the relationship should know what’s going where and when. Things happen: people get divorced or sick or pass away. Know what’s going on with your finances so that you can easily take over in the event of an emergency.

Myth #5: “I Don’t Need An Emergency Fund When I Have A Credit Card”

At first glance, using a credit card as an emergency fund may seem like a good idea. But there are a lot of reasons why relying on a credit card as your sole emergency fund may cause you more trouble. Not only can interest on credit cards be exorbitant, but there is also no guarantee that whomever you need to pay will accept a credit card. It’s also not a true emergency fund as you’ll have to pay the money back to the credit provider. If you have your own fund built up, there is no one to pay back. You just need to build up your savings again!