2 Exceptionally Common Saving Money Myths You Should Avoid

2 Exceptionally Common Myths About Saving Money You Should Avoid

The irrefutable truth about making money becomes obvious: it’s hard especially in harsh economic conditions as the the decisions of top politicians affects us immensely.

However, that doesn’t mean that it doesn’t get easy. In fact, there are many instances where you can bag a huge amount of money with little effort. But that isn’t the defining situation. Also, you can make a substantial amount of money over a given period of time, if you avoid some myths floating around that seems logical and undeniably sensible.

You should know this: it’s very damaging when a lot of people do it. That’s why you should avoid these myths at all costs.

Without further ado, let’s delve into 2 Exceptionally common myths about saving money you should not do:

1. Stay away from FSA (flexible spending account) setup by employers.

It is use-it-or-lose-it. Most people who know about FSA think that it is not worth the unique benefits it provides. They are focused on the idea that, if you fail to utilize (or spend) the money in the account before the coverage period expires, the money in the account is gone for good!

Sadly, a lot of people buy the idea and decided to stay away. It’s always better to play it safe, even when you are uninformed about a concept. Actually, especially when you are uninformed because that sounds scary right? You should run for the hills as fast as you can, right?

Wrong! If you make this mistake based on this reason, it’s nothing but a pitiful excuse especially when your FSA covers a lot. Confused? Or you don’t agree? Here is the irrefutable truth about it.

The Facts about your Qualifying Medical Expenses.

Although employers have the prerogative to choose what their FSAs will cover, your qualifying medical expenses much more cover for it if you plan, which isn’t hard. You should make a functional and realistic list of these expenses.

You have done that? Then start small to build confidence. What I mean is way smaller than your medical expenses. Easy right? Good! You’ll be surprised that you will walk your way up pretty quickly when you start enjoying the immensely valuable benefits that FSAs provide.

You could start by signing up for $500, if you are a family of three or more. You’ll be surprised that by the following year or the third year, you’ve double or triple that amount! That’s how valuable this account is.

And speaking of valuable, do you know FSAs acts as a quasi-saving device? Wait, that’s not all. If you know what FSAs really are (which I can’t go to great lengths in this article), you will know it’s free money.

Great news–about 85 percent of enterprises offer them. Yet, only 25 percent of employees take advantage of them according to The NY Times. Wonder why so many people go broke, or stay broke? Bad or poor financial decisions repeat over and over again!

2. There is no need to track your income and expenses.

It’s unnecessarily boring. And it’s hard work. Nothing could be farther from the truth. It’s not hard work. And it’s immensely beneficial also.

In sum, FSAs are good news. And tracking your expenses and income is a great habit you should do always. Remember, your friends or loved ones would want to know about this, so why not share it on Facebook or Twitter.

Image Credit: Pixabay

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