New Delhi. We all grow up with certain rules regarding money since childhood. Parents, relatives and society teach us how to save money, where to invest it and what to stay away from. These advices were correct in their time, but in today’s era of changing expenses, inflation and new investment options, many of these thoughts are stopping us from moving forward. The question is whether the habits which we have considered safe have become the biggest obstacles to our economic progress?
Myth 1: FD is the safest
It is believed in most of the middle class families that keeping money in fixed deposit or savings account is the safest way. But today, in an era of real inflation of 6–7%, FD returns of 6–7% do not actually increase your wealth. This just keeps pace with the rising prices. Staying away from investments becomes the biggest risk in the long run. Today there is a need for growth along with security, not just security.
Myth 2: All debt is bad
In olden times, loans were considered bad because of high interest rates. But today loans like home loan, education loan or business loan can increase the pace of your progress. The real danger comes from unplanned and expensive debt. It is important to understand what is ‘good debt’ and ‘bad debt’ and not to be afraid of every debt.
Myth 3: Gold is the best investment
Gold is still a symbol of security and stability. It protects against inflation and becomes a support in times of crisis. But relying only on gold is not the right strategy to create wealth. Physical gold has problems like making charges and storage. Options like equity and mutual funds give more growth in the long run. Gold can be a part of the portfolio, not the entire plan.
Myth 4: The stock market is gambling
Someone lost money on tips, someone saw loss in IPO and the result was that the stock market is gambling. Whereas the reality is that investing without strategy is gambling. Investments done with the right data, discipline and long-term thinking create wealth. Regular investment through methods like SIP reduces risk and makes returns stable.
Myth 5: Paying rent is a waste of money
Buying a home still provides stability and security, but it is not always the right decision for everyone. High prices and EMI pressure in big cities sometimes create financial stress. Renting provides flexibility and keeps initial expenses low. The right decision depends on your income, needs and future plans, not on any one rule.
Myth 6: Insurance creates wealth
Endowment or money back policies are sold as investments, but their returns are usually only 4–5 percent. The purpose of insurance is protection, not wealth creation. The purpose of investment is to increase wealth. Only by keeping the two separate can one get better security and better returns.
Myth 7: You can become rich just by saving
We have always been taught to reduce expenses, but saving alone does not lead to great wealth. There is a limit to limit expenditure, but there is no limit to increasing income and investment. Wise savings, efforts to increase income and automatic investments together create a strong future.
Myth 8: Start investing later
In many families, marriage, education and home come first, retirement comes last. But time is the biggest weapon in investment. A person who invests Rs 5,000 per month at the age of 25 can accumulate crores of rupees by 60, whereas someone starting at 35 has to invest more money. The price of delay has to be paid not in lakhs, but in crores. The old money lessons were given with good intentions, but today’s times are different. Recognizing these myths and getting out of them is the first step to financial freedom. With the right information, patience and smart decisions, money can become your strongest ally and not your enemy.
