Four money rules that no longer hold true
At the rate at which things are changing, some of what we believed in and was passed down generations is now becoming obsolete.
After what happened in 2020, most of us got a wake-up call. In a minute everything could change and shudder our reality as we know it.
And true to that, we saw it happen with the pandemic that brought the whole world to its knees.
The financial world was turned upside down with job losses, salary cuts and complete closure of businesses that once sustained our economies.
Lessons of what we did wrong or could have done better are still ongoing as we wade through an uncertain future.
This has proven that what worked just a few years ago is no longer applicable and we have to move with the times to ensure our financial survivability.
Here, we look at some money rules that were once held true and are no longer the case.
1.Home ownership is the way to go
Well, yes and no depending on how you choose to look at it. If you don’t intend to live in one place for more than five years or your job requires you to move around, renting a home may be a smart financial option than buying.
Buying a house comes with high costs and it would not make financial sense to do so if you don’t intend on settling down in that house.
There is also the concern of the housing boom and bust cycle especially now when most world economies are on a slump.
Paying out a mortgage should be examined seriously because anything can happen.
Due to the volatility of the housing markets and inflation, mortgage loans are becoming harder to secure and you must prove your credit worthiness.
2.You must pay cash
As the fear of contracting Covid-19 looms, more and more people are opting out of using cash. Digital and mobile transactions have become more attractive offering convenience and protection.
Instead of dangerously carrying wads of cash in a brief case or envelope to purchase say a car or property, you can safely make payments through bank transfers and other available online services without risking loss.
Online shopping has also been made possible by conveniently paying through PayPal and similar money transfer services.
3.You can’t retire until you’re 60-65
Many still hold the belief that you cannot retire until you reach the retirement age so you can start to reap the benefits of your hard work.
That is absolutely not true.
Thanks to new digital opportunities and ways of making money regardless of age, people as young as 40 are now capable of retiring early due to good income revenue sources and savings.
4.You must be employed
I’ll be the first to admit that I was of the thought that jobs were the answer to financial freedom. Well, not anymore.
Due to high cost of living, most of us have been forced to supplement our employment with side hustles to make ends meet.
Gone are the days you were almost guaranteed of a well-paying job straight out of college hoping to work until your 60’s to enjoy a hefty pension when your time is up.
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