Financial Misconceptions

Belief is like a compass leading us to various directions. Good belief leads us to a good life, but wrong belief may cause your life to lose its way, as well as financial belief. Today, ACU PAY comes with misconceptions of finances that you have to forget. Let’s change your mindset and improve it!


1. “All “Debts” are bad

Sometimes, being in “debt” is not bad if that debt can build up future or long-term stability. For example, taking out a loan for study or housing. The debt that should be avoided is debt that doesn’t generate income or build up financial stability such as utility debt and credit card debt. 

Being in debt requires lots of discipline in repaying capital and interest, fines, and other additional expenses that will follow. If you cannot differentiate  between “good debt” and “bad debt” and also lack good management, it could be an endless debt bond.

2. “Cash” is always better than “Credit Cards”

Credit cards are often seen as bad things that cause people to be in debt. However, credit cards are more useful than you thought if you use them wisely. Many credit cards return benefits to the holders in the form of refunds, discounts, or points to redeem goods and services. In addition, having a credit history can help create credit for other loans by using credit cards wisely and most useful, such as on-time payments, not paying at the minimum rate, and always having cash reserves.

3. Pay debt and other expense first, then save later

It is very wrong to save money after deducting other necessary expenses because it may result in insufficient emergency savings reserves and incur further debt. Therefore, it is important to focus on savings first. When you receive your income, you divide it for savings first. You should have emergency savings at least 3-6 times the monthly fixed expenses.

4. การลงทุนมีไว้ให้กับคนรวยเท่านั้น

Investment is something anyone can do. Warren Buffet always says that “Do not invest in something you don’t understand” He said that before he invested in a company, he will try to understand how the company earns income. If it is too complicated for him to understand, he decided not to invest with that company. Apart from investing in assets, investing in yourself is also important whether skills, health, and knowledge. The more you know, the more you can make money.

5. Insurance is unnecessary if you are still healthy

Sometimes an unexpected thing happens suddenly. Some are not interested in getting insurance because they think they are healthy. However, this is the perfect time for you to get insurance when you are healthy. You should get insurance when you have no disease so that you can be covered for all diseases. If you decide to get insurance when you have health problems, it will be more difficult to get insurance and more expensive premiums.

6. Need not to think about retirement now since we are still young

Anyone who thinks retirement plans are distant is very wrong because late retirement planning or postponing plans can keep you short of saving money. Starting to plan retirement early will give you more time to plan for savings and invest in a variety of investment portfolios, using the power of compound interest to keep retirement life from stumbling.

7. Banks is the safest place to keep money

It is true that banks are the safe place to store money, but keeping money in banks, whether it’s saving accounts, fixed accounts, or special accounts that offer more interest than regular ones over time, has not helped your money grow to overcome rising inflation. The way to overcome inflation is to invest in a variety of risky assets such as mutual funds, money instruments, short- and long-term debt instruments, stocks, and other alternative assets.

What is your opinion about this article? Do any of you have any of these financial misconceptions? If you think like that, create new beliefs, adjust your attitude for growing financial opportunities, and manage finances in the right way to secure life until retirement.

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ACU PAY Thailand

ACU PAY Thailand

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