Guest Posting For most Americans, saving has been a part of life in America. Saving for your retirement is something that both you and your mother stress the importance of. A key component of American success is to save for retirement. This is just a false idea of the way life should be lived. America encourages individuals not to save their own money. The government encourages businesses to earn profits while keeping consumers in debt (possibly even until death). Look at some common misconceptions surrounding saving money. Decide for yourself, find this.
Myth #1: You need to save your money so you can get an education in college, find a decent career and start working. The idea of saving money for college is a smart one. In the end, having a rewarding career is an important goal. Why is college so expensive, a course that is popular in America? There seems to have been an increase in the cost. The cost of college is so high that many students must take out large loans. To pursue higher paying jobs (think doctor and lawyer), you might need to borrow more money, or go back to college an extra year. Graduates are frequently burdened by debts in the tens and hundreds of thousands. Some even reach up to $100,000. The debt can start before a graduate receives their first pay. It is a mistake to think that saving money for college ensures financial stability. This could lead to financial instability for several years if you don’t get a stable job.
Myth 2 – Open a savings account at my local bank in order to put away money for future use. While the bank does hold and pay interest for your money, its rate is probably the lowest of any place you could store your cash. On their savings accounts, banks pay 1%-2% in interest. Because inflation is between 3% and 5 percent, it’s not enough for you to save. It means the money you are saving today is less valuable when you take it out. Your savings are collected by banks and used to generate profits ranging anywhere between 5-30%. You get your meager 1%. As your money depreciates due to inflation, the company invests it for profit.
Myth No. You can get a credit cards and save 1% to 2 % or you could even receive frequent flyer miles. While these offers for credit cards might seem to offer a good way to save some money, your interest payments on purchases are much greater than the savings of 1% or 2%. When you purchase something using a card, you will not be saving 1%. However, you can actually lose between 6% and 28% of your money depending on the rate on your card. The annual fee and the transaction fees still apply even when your card is fully paid every month. Save money if you pay your full card balance at the end of each month.