[TEST] 6 Money-Related Myths Malaysians Still Believe Until Today

Featured image for illustration purposes only | Source: PublicSource

There’s an age-old saying that “Money can’t buy you happiness”. Sure, that may be the case but money is a constant thing that Malaysians deal with on a daily basis.

That’s why it’s super important to get over certain money-related myths. Yeap, there is such a thing and it’s surprising just how many of us actually stick to them! Let’s take a look at what some of these are and break them down properly…

1. “If I get credit card, sure I’ll end up in debt”

Truth? If you’re financially savvy and know what you’re doing, there’s no reason why you shouldn’t get one.

• Having a credit card is basically a commitment. The basic requirement of owning a credit card is having a steady income, so you can pay it off.
• Debt is not necessarily caused by having a credit card, but often attributed to bad spending habits.

2. “I need to save as much as I can to actually have money!”

Truth? Do save what you can but also be on the lookout for the right opportunity to earn too.

• Living paycheck to paycheck is okay but it’s not the way to go, if you REALLY want to earn money.
• Robert Kiyosaki of ‘Rich Dad, Poor Dad’ fame shares an interesting comparison of 2 dads. One focused on working for money while the other made their money work for them.
• At the end of the day, the dad who made his money work for him got more out of it. Simply because he looked out for the right opportunities to grow his money such as by building his cash-flow and building his income through investments.

3. “I MUST avoid high-risk investments at all cost!”

Source: IndianMoney

Truth? Any investment can be risky but it really comes down to doing your research and understanding what your risk tolerance is.

• Any investment will have a variety of risks, it’s up to you to choose what kinda risk and investment you want.
• The best way to get over your fear of taking high-risks is to understand your investment goal and time frame, make sure you’re informed enough and have a thorough understanding of the factors to know what you’re getting into.
• In the long run, choosing not take any sort of risk could ultimately make you lose out too, as you won’t be fulfilling your maximum earning potential.

4. “So little money, how to invest?”

Source: Quartz

Truth? Theres actually a lot of different avenues for you to invest, even if it’s a small amount. The key is to start early on to gain the most out of it.

• The truth is your money may NEVER be enough, so if you keep on waiting, it’s only going to make it harder for you to invest.
• There are actually plenty of ways for you to invest even a small amount of money such as investing it in unit trust funds, a fixed deposit account, ASB or even other avenues.

5. “I can pay in installments means I can afford lo!”

Source: Huffington Post

Truth? Don’t always go for the monthly payment and really consider what you can afford.

• Making monthly payments is basically similar to paying rent.
• Rather than putting more money into it on a monthly basis, focus on buying outright where possible.
• This will help limit how much you spend AND makes more money available to you for other purposes.

6. “I have to always pay by cash”

• Actually, there’s a lot more benefits to paying through credit card than via cash. Some advantages include getting a good credit score and gaining certain rewards or even cashbacks.
• Depending on the credit card that you sign up for, you’ll be able to reap way more rewards!

Maybe you should consider a Hong Leong Credit Card to really maximise your benefits. You can choose between:

• 1 Visa AND 1 Mastercard, or
• 1 Visa Infinite, or
• 1 Visa Infinite Doctor’s Edition.

Apply for Hong Leong Credit Card(s) right now, spend a minimum of RM2000 AND sign up for an Auto Billing to get RM300 worth of cash back. Top that up with the RM50 bonus if you apply online and that’s RM350 to your name! Wah, so good!

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