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Avoid These 6 Common Money Myths

Monday, November 27, 2017

We at Abakhan & Associates know that debt and financial management can be complicated issues. Between complex budgeting and soaring Vancouver housing prices and taxes, it can be disturbingly easy to slip into financial trouble. Here are six common money myths to avoid:

a happy debt-free couple sharing an umbrella in a downpour of cash

  1. There’s a “right time” to start saving for retirement
    The right time to start saving for retirement is always now. Most retirement plans require interest on various savings and investments to develop. More time means more interest so sooner is always better than later to start planning.
  2. A TFSA is no different from a savings account
    The government started the tax-free savings account (TFSA) program in 2009 to encourage Canadians to save for retirement, and certain unique benefits are attached to them. There are actually a few different kinds of TFSA. You should consult with an expert to find out which TFSA strategy is right for your goals.
  3. Debt is unavoidable
    For the past few decades, debt has become a bigger problem for Canadians. Some people think that debt is just an unavoidable part of life now. Depending on your goals, this may be partially true for things such as mortgages or car loans. Consumer debt, incurred when buying daily goods on credit, is certainly not necessary. If you’ve already fallen into debt, we can help you get out of it.
  4. Buying is always better than renting
    Buying a house makes sense for some people, but not everyone. Rather than be burdened with debt for years, many people are now choosing to remain renters and enjoy a higher quality of life in other ways.
  5. You get what you pay for
    A lot of people think that higher prices necessarily mean higher quality products. This isn’t always the case. Prices reflect society’s demand for a product more than the product’s inherent quality. Be sure you’re paying for a good product rather than a popular brand.
  6. Tax refunds are money with no strings attached
    There’s a unique thrill in getting a tax refund in the mail and many people treat it as unexpected or extra money. This might be a mistake. It’s actually income that you’ve already earned. You’ve simply overpaid your taxes and are being refunded some of that money. You certainly deserve to treat yourself to something special every so often, but do it responsibly.

If you’re in trouble with debt and need a little help, contact us today at Abakhan & Associates. We have offices in Vancouver and seven other locations all around British Columbia. Whether you’ve found yourself in a financial problem or just want to get some advice about how to avoid incurring more debt, our team has the experience and expertise to help.

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