In an effort to enjoy the benefits of financial stability and adventures in gluttony we tell ourselves that ignorance is bliss, and choose to take the easiest route to immediate satisfaction. What we don’t think about is the long-term effects. Here are a few common misconceptions and financial planning and dieting.
Fact: Skipping breakfast helps you lose weight.
False: When you skip a meal your metabolism slows, and you are more likely to eat more at your next meal and also store more fat, ultimately leading to weight gain.
Fact: Ignoring your financial statement means it doesn’t exist.
False: If you don’t check your statements regularly you are more likely to overspend, miss any fraudulent charges, and have a harder time putting away any savings.
Fact: Eating just three meals a day is better than snacking throughout the entire day.
False: People tend to add more body fat when they eat fewer, larger meals than when they eat the same number of calories in smaller, more frequent meals.
Fact: Paying the minimum balance on a credit card means you won’t get charged a penalty.
False: Interest is charged on the balance owing at an average rate of 19-23% , which is added to your total owed every month. You can continue to pay the minimum balance but your outstanding amount will keep growing which is why statements show you how many years it would take at this rate for you to pay it off.
Fact: Trying a “no carb” diet is the solution to quick and easy weight loss.
False: Cutting out a food group entirely will never work out in the long-term, which is why most people gain the weight back after immediately after dieting.
Fact: Spending only the money which is left after paying your bills is called “Saving”
False: If you spent ¾ of your earnings on bills, and ¼ on recreation then you have ZERO left for a rainy day emergency.
These are just a few of the basic flaws in our thought process that continue to halt our progress and make your goals impossible to reach. So start your day right. Start your life right.
At Fast Access we offer support for those who don’t want to listen to the financial myths and are looking to improve on their planning skills. We report to Equifax to help repair you score because we know a strong foundation can be built upon.