5 Money Myths Women Should Forget

There are so many myths about personal finances. As always, many of them really are only myths and you shouldn’t let them affect the way you manage your money. Unfortunately, many women don’t feel like that about myths and never even doubt their truthfulness. With that said, we come up with five money myths women need to stop believing.

Budgeting means you can’t buy what you want

One of the delusions most of us have about budgeting is that it means we can’t buy what we want. If you can’t buy a piece of clothes you want or a new iPhone, why are you making money in the first place? The point of budgeting isn’t to rob you of having one. Instead, it’s all about working these expenses into your budget from the beginning. That way, you can budget for your other expenses and still get to buy something you want. Even some of the biggest financial experts say that there’s nothing wrong with spending money on fun stuff. As long as you strike a balance between necessities, things you want, and saving towards the future, there’s absolutely nothing wrong with it. For even better budgeting, consider using apps such as Mint.

Now’s too late to start saving for retirement

We all take some time until we truly learn how to manage our money. Unless you opted for a career in finances, chances are you haven’t even thought about saving for retirement for a long time. If this is true, there’s no reason to worry. There’s no bad time to start setting money aside for old age. So, if you haven’t started doing it, now’s the perfect time to do so. The best part of it is that you don’t have to set aside large chunks of your budget. As long as you do it every month, even the smallest amounts of money will do the trick. About 73 percent of GenZ and Millennials move at least three percent of their monthly paycheck to their savings account.

Trading is too hard

Trading isn’t easy, simple as that. But that’s no reason to give up before even giving it a go. Many people look into it but decide that trading is too hard for them. The emergence of online trading platforms made trading easier than before and now is a great time to start. Plus, these platforms are opening the doors to gender equality and the male trader stereotype is eroding. This makes following the steps of female traders like Kathy Lien and Linda Bradford Raschke a great idea. If you decide to become a trader, it’s important to get everything right from day one. Visit sites like AskTraders to find all the information you need. For starters, familiarize yourself with market psychology and identify assets you want to trade with.

Having a credit card is a bad idea

Many women decide to use only cash because they’ve heard credit cards can easily get them into debt. While it’s easier to create debt when using a credit card, it doesn’t mean you’ll actually do it. As long as you use your credit card responsibly and plan most of your purchases, there’s nothing wrong about using a credit card. In fact, paying with a credit card is a good idea, as it’ll help you build up your credit score. With a good credit score, renting an apartment or getting a bank loan becomes much easier. The best thing you can do with your credit card is to use it for routine monthly purchases only. This includes everything from your Netflix subscription to utility bills.

I shouldn’t negotiate an entry-level salary

Another common misconception many women have is that negotiating an entry-level salary isn’t the best idea. Most of them believe they’re too inexperienced or not in a position to ask for a bigger salary than offered. Studies have shown that only about 39 percent of new employees negotiated their salary at their first job interviews. It’s important to have in mind that many companies expect you to negotiate. This means that if you accept the initial offer, you might be missing out on a chance to earn more. The best advice successful women have about negotiating salaries is to be aware of the common salary for your job. That way, you’ll never accept an offer that’s not good enough. Bear in mind that things such as degree, industry, and the area you’re located in may affect your salary.

The bottom line

Most of us have been reading and hearing “facts” that ended up shaping the way we manage our finances. With all the information available online, cranking these myths has never been easier and there’s no reason to let them affect our lives. Start by forgetting about the five myths covered in this post and you’ll find staying in control over your money easier.