{"id":17755,"date":"2022-02-28T19:00:00","date_gmt":"2022-02-28T11:00:00","guid":{"rendered":"https:\/\/www.comparehero.my\/blog\/uncategorized\/money-myths.html"},"modified":"2026-03-26T15:59:46","modified_gmt":"2026-03-26T07:59:46","slug":"money-myths","status":"publish","type":"post","link":"https:\/\/www.comparehero.my\/blog\/money-tips\/money-myths.html","title":{"rendered":"6 Money Myths We Need To Stop Believing"},"content":{"rendered":"\n

The abundance of financial knowledge on the Internet has brought a lot of knowledge to our society in general. But it comes with the caveat that not all information can be trusted. On top of this, when paired with traditional financial knowledge that either does not work anymore or does not give the entire picture, it makes it even tougher to discern the useful information from the disadvantageous. <\/p>\n\n

Bringing a positive change into your lives, financially, is more than just a few words on the Internet. Ergo, we want to debunk all the myths and advice that no longer serves as a benefit. Often, knowing what is the obstacle is enough to set you on a different path that gives a person better rewards for the long term. <\/p>\n

With that being said, here are 6 money myths that we need to stop believing. <\/p>\n

Myth #1: Money won\u2019t make you happy<\/h2>\n

In a way, yes, money won\u2019t make you happy. But money can solve all your financial problems<\/a> that may lead to unhappiness. Money can bring you contentment but it can make you a lot less unhappy. <\/p>\n

For example, if you\u2019re struggling to pay rent every month and this issue is always the core of an argument between you and your partner, money can definitely turn it around. On top of it, having money can relieve a lot more stress and pressure to make ends meet every month and allow you more time to work on the things that bring fulfilment to your life. <\/p>\n

If you have a money problem, money will set you free. Just make sure the problem is money and nothing else. <\/p>\n

Myth #2: A credit card is your emergency fund<\/h2>\n

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Credit card payments<\/em><\/p>\n

A credit card is NOT your emergency fund<\/a>. I\u2019ll repeat: \u201cA CREDIT CARD IS NOT YOUR EMERGENCY FUND!\u201d The money that you spent using your credit card turns into debt real quick if you don\u2019t pay it back or don\u2019t have the ability to. <\/p>\n

Emergencies happen, you need to have that fund ready because this event is unpredictable. What you don\u2019t need in this case is to have another debt that is weighing you down. Thus, you should not plan to go into debt for future emergencies that are bound to happen. <\/p>\n

Instead, use cash. Save for this emergency fund and store it away from you so that you\u2019re not tempted to use it. <\/p>\n

Myth #3: Investing in a house is better than stocks<\/h2>\n

This is a tad more controversial but a house is not better than stocks. <\/p>\n

Don\u2019t get us wrong, a house<\/a> is a great place to live, especially if you have kids or pets that appreciate the land. It is somewhere for you to feel safe until you repay the mortgage. But until then, you\u2019ll be faced with a lot of problems that will require you to replace, fix and furnish. All of which will cost you even more money on top. <\/p>\n

We\u2019re not saying to never buy a house. But in terms of investing, a house does not produce any income for you. It may even cost you a lot of money in the beginning. Hence, perceive it as necessary spending instead of an income-generating investment. <\/p>\n

Myth #4: Investing is only for the wealthy<\/h2>\n

In the olden days, yes. The cost of investing (brokers) is so great that if you\u2019re investing small amounts, all of it will only go to your broker. But today, opening an account is literally free. And the commissions that you pay are not as significant as years ago because of the advancement of technologies. <\/p>\n

Related:<\/strong> Beginner\u2019s Guide To Stock Investment In Malaysia<\/a><\/p>\n

As a matter of fact, every single working-class individual should start investing in rather discretionary funds. Survive first, then invest. That\u2019s because the power of compound interests can bring the assets of an individual with a net worth of five figures to seven figures.<\/p>\n

The compound interest formula tells us that if you can invest about RM500 every single month with an average return of 5% annually, you will cross that seven-figure milestone is 46 years. <\/p>\n

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Investing<\/em><\/p>\n

Myth #5: Once you have an investing plan, you\u2019re all set<\/h2>\n

Financial planning<\/a> is not something that is fixed. Rather, it\u2019s an ongoing commitment to financial freedom. <\/p>\n

If you\u2019re serious about reaching this goal and want to make improvements to it, it will require constant upkeeping and maintenance. The world is constantly changing, the economy is not guaranteed, bull and bear markets will have their turns, and we need to adapt to it. No investing strategy is going to work 100% of the time. <\/p>\n

We strongly recommend checking your financial profile at least every three to six months to make sure that you\u2019re on track. A lot can happen in this short period of time and you need to make sure that your plan is still accurate. <\/p>\n

Myth #6: Any debt is bad debt<\/h2>\n

Not all debts are created equal. Some will give you an unexpected return or yield more than what your debt is worth. The big question is: Will this debt pay me back more than what I put in? <\/p>\n

Related:<\/strong> Know The Difference Between Good Debt and Bad Debt<\/a><\/p>\n

A few examples of this could be student loans, a mortgage, or even taking debt to consolidate your outstanding debts. The reasons for this is that you will be getting all your money back and then some. You have to know why taking on debt and evaluating whether it will give you a net positive outcome. <\/p>\n

That\u2019s how you take advantage of debts. <\/p>\n

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For more money tips and investment guides, please check out our articles:<\/p>\n