Myth #1: Renting is like throwing away money. This one comes from two angles: The fact that you can deduct the mortgage interest on your taxes, and the idea that homes always go up in value. In reality real estate is like any other investment – it can go up or down.
Myth #2: It takes money to make money. The days when you needed a pile of cash to invest are long gone. Some savings accounts can be opened with just a dollar and you can buy as little as one share of stock at some online brokerage firms.
Myth #3: Carrying a balance on credit cards improves your credit rating. This is just plain false. In fact, the only thing it does is take money out of your pocket and give it to the credit card companies. If you want to improve your credit score, pay off your balance in full and on time every month.