There are a lot of confused people out there when it comes to tax laws and financial management. We have jumped into the muck of misconception and come out with a list of things that are quite baffling because a lot of people think it is true.
Higher Pay Higher Tax
People think that if they start earning more, they will end up taking home less than before because they are being taxed more. But the truth of the matter is that not all your pay is charged at the increased tax rate; only the amount that is over the margin. So in essence your take home salary will increase from your previous income plan and that extra bit that crosses the margin alone will be taxed at a higher rate.
Buying instead of renting
People think that renting a property is a bad financial move because it doesn’t come with any form assurance or financial stability. The fact of the matter is that when you buy a home, you will have to pay a lot in the beginning in the form of property tax and mortgage payments. So whatever money you spend there is more of a waste than having a rented place where all you have to do is pay the monthly rent on time. On the long run, owning a house makes sense, but in this volatile market, the safer bet is to rent an apartment instead of building a house.
People think that to invest in something they need to be super rich. Unless you want to be an angel investor from the get-go, you can easily enter the world of investment and stock trade. It is easy to buy stocks and trade and wait for the stock that you bought to reap benefits. A lot of times the smallest of stocks have left investors with over 1000% in mark up because they were willing to wait and had made the right calls by investing in the right project at the right time. Investment is like a long game that you have to play by understanding how the market works and by doing a lot of research.
There are a lot of financial myths floating around, and we can’t cover all those topics in a single article. If you like this article and want to see more of the same, do let us know in the comment section. We will definitely release another list soon with the right kind of support.