Money myths we believe

DROP BLANKET ASSUMPTIONS: DEBT NOT ALWAYS BAD, OWNING PROPERTY NOT ALWAYS BEST

- Craig Torr

DON'T BE FOOLED. Popular financial sayings contain a grain of truth but may be misleading.

(Picture: AdobeStock)

Financial advice comes from all directions - friends, family, social media, even the occasional well-meaning stranger you meet at a braai. Some of it is solid, some of it is harmless, and some of it, unfortunately, can be quietly damaging to your long-term financial health.

What makes the latter so dangerous is that it often sounds sensible. It's usually been repeated so many times, or packaged so persuasively, that it feels like an established truth.

We explore some of the most common examples of so-called "good advice" we've come across.

All debt is bad debt

Debt can be expensive, stressful and risky if mismanaged so it's easy to understand why this idea persists. But lumping all forms of debt into the same category ignores the role that strategic borrowing can play in building long-term wealth.

The danger of the "all debt is bad" mindset is that it can lead people to avoid useful leverage altogether, or to settle low-interest loans early at the expense of building an investment portfolio with higher potential returns.