Myth 2: Owning a House is Better Than Renting

You will have certain problems living in a rented house like loud-mouthed landlords, poor maintenance and annual rental hikes. This would already have made you think that buying a house would put an end to all these problems. But buying a house requires a huge investment and taking home loan could be a costly affair as the interest rates are ruling above 12 percent. If you have just begun your career, settling down into a particular city might block your mobility. Because of this you will simply miss emerging job opportunities in other locations. Buying a house will make sense for bigger pocketed. So it’s advisable that instead of buying a house with a huge home loan, start saving money from early stages of your life so that later you can gather a huge amount to buy a house of your own.

Myth 3: Making Investments over Illiquid Assets

Illiquid investments may offer higher returns but it can limit flexibility. An illiquid investment doesn't allow partial withdrawals and you cannot easily cash them in. If you are an investor, your investments may not be bad but make sure you pour only a small portion of your money in an illiquid investment. Although you will not have to pay a penalty to get out of them but investing in solid asset when prices are overheated and interest rates are high is an investment mistake.