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Money advice is everywhere. Your parents, your colleague, even a friend who only discovers crypto and will not stop talking about it. But whatever you hear is not true. Some financial myths have been around for so long that they feel like facts, but in fact, they can prevent you from moving a smart money.
Let us still bust some of the biggest money myths in 2025.
1. “Gold is the best investment”
Indians like gold. Even it is considered auspicious for buying gold during festivals, weddings and any major life. And while gold is a great defense against inflation, it is not always the best option for long -term wealth.
Recently, the government has reduced the tax from 15% to 6% on gold imports for buyers in India. As a result, gold prices fell more than 8%, ₹ 74,080 to ₹ 68,388 per 10 grams. While it was good news for those wishing to buy gold jewelery at low prices, it was not the same for investors keeping paper gold (such as Gold ETF and Sovereign Gold Bond).
The price of gold is greatly affected by government policies, global demand and ups and downs in currency, making you compare it with other investment options. Over the years, mutual funds, stocks and even REITs (Real Estate Investment Trust) have given high long -term returns than gold.
So yes, gold has an emotional value, but if you want to increase your money, consider diversifying other asset classes.
2. “Fixed deposit is the safest and best way to increase your money”
Your parents probably told you that FDS (fixed deposit) is the safest way to save money. And they are not wrong; FDS are safe, but the problem is that their returns often do not live with inflation. This means that over time, your money can actually lose value.
If you want your money to grow over time, consider diversifying mutual funds, index funds or even stocks. These options take some risk but provide better long -term growth than traditional FDs.
3. “Life insurance is a good investment”
Many people buy endowment or money-back policies, thinking that they are making a smart investment. But the truth is that life should be for insurance protection and not for investment.
If you want to secure the financial future of your family, a word insurance policy is a better option. It provides high coverage at low cost.
4. “You need a lot of money to start investment”
This can come true a decade ago, but in 2025? no way. Thanks to digital investment platforms and SIPs, you can start investing at least as per month of 500.
Whether it is mutual funds, ETF, or stock, small but frequent investment over time can increase in significant funds. The key is to start quickly and to be consistent.
5. “Credit cards are bad and they should be avoided”
Many people treat credit cards like financial enemies. But honestly, credit cards are only spoiled if you misuse them. When used wisely, they provide cashback, award, travel benefits, and most importantly help to build your credit score.
To avoid trick interest, pay your full balance every month. Correct, a credit card can be a powerful financial equipment and not a loan net.
Believing in old money myths can prevent you from increasing your money and making informed financial decisions. Whether he is investing in gold, avoiding credit cards, or was thinking that FDS will make you rich, it is time to rethink the way we deliver money.
