Personal finance expert tackles ‘widespread’ financial misconceptions

The person’s financial affairs department may be difficult, especially when facing conflicting information – and is often wrong – feeding them for people, especially on social media.

Buying in the common misconceptions surrounding the money can be harmful, putting someone on his background when it comes to financial health.

Jonathan Kim, a personal financial expert and financing head on the online savings platform, took a goal in an interview with Fox, including the idea that “it is not worth saving unless you can remove a lot”, and now buying as a good budget tool, and a high salary for financial success.

He also retracted the suggestion that people do not need savings accounts and that saving money should not happen before someone is devoid of debt.

Kim said: “Some of these ideas about paying debts before saving, and a complete lack of understanding of a reason that you may need savings and why some debts may not be terrible, as I think, is widespread.”

Translation of student loans, and sending credit grades to be drowned to borrowers

The wrong belief that “it is not worth saving at the present time unless you can put a lot” is a common idea he said he saw on social media.

“It is very easy to fall into this trap that you think,” if I cannot save the amount of x % or x in dollars, this is not worth this effort, “Kim said.”

He said that consistency with savings was important, noting that “even” starting something like $ 10 a week can help build this financial flexibility and can usually adhere to you with your progress. ”

When it comes to high salaries and financial success, Kim said, “This legend and this propaganda” is that the high salary is equivalent to financial success when financial health is in fact, in fact, to manage money wisely.

Taking a great salary is “clearly it is great, but I think it is also correct that lifestyle crawl is very real, and if you do not have financial discipline, conscious savings and spending, it is actually easy to let the lifestyle happens to you, and you find yourself struggling financially even after you got it at work or this new work.”

Kim said that the budget could be a useful tool to prevent lifestyle crawling, while also retreating from the idea of ​​”being perfect” to work.

“You can have a general understanding of what is happening and what is happening to start,” he said. “Once you are tracked, if you look at it over time, you can see” Oh, you only spent x, now I spend two times. What happened there? “

He also said that the budget helps people “deliberately spend” and does not mean that someone should give up “everything that brings you joy” to focus only on the necessities.

Kim touched on buying now, paying subsequent services and whether it could be a good budget tool.

Buy now, the payment later is increasingly common in recent years as people are looking to divide and finance smaller purchases.

The general corridor by a bottom advertisement for KLARNA technology, a European e -commerce company that allows users to buy now, pay later, or pay in installments. (Daniel Harvey Gonzalez / in the pictures via Getti Earth / photos)

“If you buy now and pay later because you don’t have money now, this means that you cannot bear it,” Fox Business told Fox Business: “So if you cannot afford it today, you cannot bear it, and by this context, it is now buying, and the payment is later encouraged to spend excessive, and this may lead to the accumulation of debts, which gain the benefit after that, then you find yourself decreasing the hole of the rabbit from bad financial habits.”

The financial expert warns of hidden traps for “Buy Now, pay later”

He said he was a “kind of interlocking” with another wrong belief of people who have to pay all their debts before the money disintegrated as a savings.

Kim said: “If you have high interest debts, such as credit card debts, changing mortgage, student loan debts, or anything that can really harm you or the interest rate can rise, you definitely want to pay it.” “But at the same time, the other side is that you may be lucky enough to be someone where you get a mortgage five years ago and your mortgage rate is very low. In this sense, it will not make sense to give up that immediately.”

Building savings can be very useful in debts.

He said it is important that you have a financial plan and pay the debt, but note “things can happen in your life”, so creating an emergency box by saving can prevent snowball from debt and interest in the event of something.

He also said that having a savings account was better than just using an audit account.

When someone keeps all his money in an examination account, it can be “in fact its easiest to spend and more difficult to track your goals,” according to Kim.

Creating a savings emergency box can prevent snowball for religion and benefit if something happens. (Istock / Istock)

He pointed out that the balances of checking accounts can rise and decrease with expenses and income, which makes savings difficult to monitor. Many also offer a low or non -money interest, “so your money does not actually work for you,” according to Kim.

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He said that the allocated savings account can create “material limits, in some senses, where you can see that these money is separate, and you can see that it grows over time, which gives you a feeling of achievement and keeps you well when built.”

He added that they could have high interest rates that will help savings to grow negatively over time.