5 money saving myths

Wow.. It is absolute shock after read about this 5 money myth from MSN.com . Read first about this myth :

My money is completely safe in the bank

Saving your money in a deposit account is safer than stuffing your money under your mattress but your money is not 100% safe in a bank. There is still the possibility that your bank can fail and you might not be able to withdraw your funds. Government agencies often insure only up to a certain amount in case of a bank failure. The Bank Negara Malaysia’s deposit insurance program puts a limit on the coverage to RM 250,000 per depositor at member banks. The central bank raised the limit to protect at least 99% of retail depositors in the country.
Rising graph and dollars
// I know this as not all bank could have bright future. Sometimes there’s merge bank that could effect our money in bank but I think it is better than put into mattress as we know there’s many burglar will come to our house while we dunno when the bank will down.
| How Hackers Attack Account |

My money is earning when I keep it in the bank

Yes, your money can earn interest in the bank if you keep it in an interest-earning deposit account but whether it grows in value is another matter. If the interest being earned by your money in that deposit account does not exceed the inflation rate, then it has actually lost some value. However, this does not mean that you should take out all of your money from your bank and invest it. It just means there is a need for you to diversify your financial positions in order for you to beat the negative effect of inflation on the value of your money.

Your deposit account should be there only to make your funds more liquid and you should not rely on the interest from your deposit account to sustain you. If you do not see yourself withdrawing a large portion of your deposit even for emergency purposes, you could look into putting this amount into a time deposit account as this usually provides you with higher interest rates than regular savings accounts.
// I’m also agree that it can’t grow much more for the interest earning. Investing to others type of investment that help us to earn more and hope that inflation rate will not up too much.

Paying cash is always best

Cash Advance
Not all the time! You could be missing out on reward points if you used your credit card instead. If you already have a habit of living within your means and you do this by paying for cash for everything you buy, then you could be rewarded for this habit if you used a credit card for your purchases. The key is to pay off the balance on your credit card every month so you could avoid paying interest on your card. Compare credit cards and look for a card that offers the most rewards that fit your shopping habits. If the bulk of your purchases are for groceries, then you should find a card that offers the best cashback rates. You could also look for a card that lets you earn air miles if you want to earn a free vacation.
// I don’t agree as sometimes reward points is not worthy to get. Some hypermarket also accept reward point using cash. For me, why make credit while we can do cash.

I save a lot when there is a store sale

Do not be enticed to buy something just because it is on sale. Take advantage of special sales only when you really need an item. You can save if you really need that item but if you spent on something just to take advantage of a sale, then that is not really saving.
// Yes. Store sale not really save because sometimes we will buy more than we need.

It is always cheaper to buy a new one when the old one breaks

In today’s era, when everything seems disposable, there are some things you can fix before you decide to replace them with something new. It is easy to buy new household appliances like electric fans or washing machines if these break but it is worth checking first if these are still covered by a warranty. That way, you could have these fixed at no cost or to have these fixed by a repairman if the appliances break. Any reputable repairman would advise you whether it would be much more economical for you to just buy a new one rather than to have it fixed with them.
// Some of appliance especially electronic will cost more to buy one than fix it. It depend on the thing.

Okay, do you agree with the myths ?

Going shopping in supermarket will slash money than your budgetting if you not properly plan.
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