6. ‘Must diversify investments’

Most of the people believe in this myth. It is true that diversifying your investments can help you avoid financial damage if you place all your money in one stock. Diversifying investments might reduce financial risk but it might not always. In order to properly diversify your portfolio, you will need a good amount of money to invest in different stock sectors. Not only money, in order to maintain a mixed stock portfolio you also require time and patience and it might make your taxes more complicated. Diversifying investments is often a good decision, but not a right decision for everyone.

7. ‘Everyone should aim to save 10 percent of income’

This myth truly makes no sense, as you cannot force everyone to do what you do. We all are humans and we tend to have different behavior and different goals in life. The same is in the case of financial matters. For example, there are people who save zero or even going into debt for a time, whereas there are people who would be saving 80 percent of their post-tax income. The point is that there is no one who saves exact 10 percent of their income. It purely depends on each individual on how and when they want to save and no myth can change this rule.

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