Breaking Down Common Financial Myths

When it comes to money, advice is everywhere — from family, friends, social media, to random “finance tips” passed down like family recipes. But not everything we hear about money is true or helpful. In fact, some financial myths can do more harm than good. Here's a look at some of the most common ones and why it's worth looking at them differently.

Myth 1: You Need to Be Rich to Start Investing

A lot of people believe that investing is only for those who already have a lot of money. But the truth is, you can start investing with even small amounts. Many mutual funds, for example, allow you to begin with as little as ₹500 per month through SIPs (Systematic Investment Plans). The key is consistency, not the amount.

Myth 2: Credit Cards Are Always Bad

Credit cards often get a bad reputation, and while it’s true that misuse can lead to debt, when used wisely, they can actually help build your credit score, earn you rewards, and give you emergency support. It’s not about avoiding credit cards altogether, but about understanding how to use them without falling into a trap.

Myth 3: Real Estate Is the Only Safe Investment

Real estate is often seen as the ultimate financial goal — and while it can be a good asset, it’s not always the smartest or safest. Property comes with its own risks: high costs, maintenance, paperwork, and market fluctuations. It’s just one option among many, and not necessarily the best one for everyone.

Myth 4: If You Save Enough, You Don’t Need Insurance

Saving is great, but it’s not a replacement for insurance. Medical emergencies, accidents, or unexpected losses can wipe out years of savings in one go. Insurance is meant to protect your savings — not replace them. Think of it as a safety net that saves you from starting over financially.

Myth 5: Talking About Money Is Rude or Uncomfortable

A lot of us grew up in households where talking about money felt awkward, even taboo. But open conversations about finances — with partners, family members, or even friends — can lead to smarter decisions. It helps avoid confusion, sets expectations, and builds trust.

Myth 6: More Income Means Better Financial Health

Earning more doesn’t automatically mean you’re doing better with money. What matters more is how you manage what you earn. Someone earning ₹30,000 and saving wisely might be in a better position than someone earning ₹1 lakh and spending everything each month. Good habits beat big salaries when it comes to long-term financial health.

Final Thoughts

Financial myths stick around because they sound familiar or comforting — but that doesn’t make them true. It’s okay to question what you’ve heard, do your own research, and make money choices that actually fit your life. The goal isn't to follow outdated advice — it’s to understand your own needs and build from there.