Don’t Be Fooled by These 7 Money Myths

Surprisingly, money can’t buy everything. Yes, money can buy a new car, a lavish house, or even your own island, but it can’t buy everything. You can’t purchase a sense of humor — although you might be able to pay people to laugh at your jokes — and money won’t force someone to fall in love with you or make you younger. People love to say that money can’t buy happiness, but while happiness itself can’t be bought, you can certainly purchase many things that will make you happy. People love to talk about money: That’s why there are so many talk shows, movies, and even books dedicated to the subject. However, there are many money myths out there that are just not true. Here are seven of them.

Money Man

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1. You should keep a balance on your credit card to build your credit score

This is a very popular belief, but maintaining a balance won’t improve your credit. In addition, by maintaining a balance, you may end up paying interest charges. A better idea is to pay your bill on time every month. In addition, keep your credit utilization low — avoid using too high a percentage of your max credit limit very often. As 30 percent of your credit score is actually based on how much of your available credit you are using, so long as you are paying your bills regularly and avoiding maxing out your cards, you will build your credit score. If you need to regularly use a large percentage of your limit, you can consider asking for your limit to be raised so that the credit utilization percentage will go down.