5 Financial Myths That Could Be Holding You Back

Why Financial Literacy Matters Now More Than Ever

With so much financial advice out there — from TikTok tips to things your parents always said — it’s easy to feel unsure about what’s true. Some financial beliefs sound right, but when followed blindly, they can actually slow you down or leave you feeling stuck.

Whether you’re saving for your first big trip, learning how to budget, or just trying to make smarter choices with your money — understanding your finances is key. And part of that starts with clearing up common misconceptions that many of us still carry.

Let’s clear up some common financial myths so you can move forward with better knowledge, less stress, and smarter financial decisions.

🔍 Myth 1: You need a high income to start saving or investing

The truth: You don’t have to be earning a lot to take control of your finances.

Many people believe they need to wait until they earn more before they can start saving or investing — but it doesn’t work like that. What really matters is building the habit of setting money aside consistently, no matter how small the amount may be. That small step today could become something meaningful tomorrow.

One helpful way to start is by saving with a clear and specific goal in mind. For example, if you're dreaming of a trip to Japan, begin by estimating the full cost — flights, accommodation, meals, transport, and activities. Once you have a total amount, break it down by how much you need to save monthly or weekly to reach that goal within your timeline.

Having a goal like this not only keeps you motivated but also makes your savings journey feel more achievable. You’ll know what you're working towards, and each ringgit saved will feel more purposeful.

💡 "The journey of a thousand miles begins with a single step." — Lao Tzu, Chinese philosopher.

Start small, stay consistent — that’s how wealth is built.

🔍 Myth 2: Keeping all your money in a savings account is the safest strategy

The truth: Saving is important, but letting your money sit too long in one place might not help it grow.

Savings accounts are a great place to build your emergency fund or manage short-term needs. But if you leave your money there without a plan, its value might slowly decrease due to inflation. A smarter approach is to save with a purpose and explore simple ways to grow your savings safely.

For example, if you're setting aside money for a big purchase or long-term goal (like buying a new laptop or planning a wedding), you might consider separating your savings using digital features like saving pockets or goal-based tabs. This helps you stay organised and on track, without mixing up funds for different priorities.

💡 "Don’t just make money. Make money work for you." — Robert Kiyosaki, American businessman and author of Rich Dad Poor Dad.

Keeping all your cash idle might feel safe, but it’s not always the smartest move.

🔍 Myth 3: Investing is only for the wealthy or finance experts

The truth: Anyone can learn to invest — one step at a time.

You don’t need a financial background or thousands of ringgit to begin investing. Many platforms today let you start with as little as RM10. What’s more important is to understand your comfort level with risk and start small while learning along the way.

Here’s a simple tip: before putting any money into investments, write down what you're saving or investing for. Is it a 3-year plan to further your studies, or maybe to build a fund for your future home? Once you’ve set your intention, you can start exploring the tools that match your timeline and risk appetite.

💡 "The best investment you can make is in yourself." — Warren Buffett, American businessman and philanthropist.

With the right knowledge, even small steps can lead to big financial wins.

🔍 Myth 4: All debt is bad and should be avoided

The truth: Not all debt is created equal — it’s how you manage it that makes the difference.

Instead of fearing debt altogether, try to understand the difference between what’s considered good debt (such as financings for education or buying a home) versus bad debt (like overspending on credit cards with high interest).

A practical tip is to always ask yourself: “Is this debt helping me grow, or is it holding me back?” Before applying for any loan or credit, write down the reason and calculate whether the monthly payments will fit comfortably within your budget. If the answer is yes and it supports a long-term goal, then you’re using debt as a tool — not a trap.

💡 "The rich get richer by using debt to their advantage." — Robert Kiyosaki, American businessman and author of Rich Dad Poor Dad.

Used wisely, debt can be a stepping stone, not a setback.

🔍 Myth 5: Budgeting is boring and restrictive

The truth: A budget isn’t a punishment — it’s a plan that gives you more freedom.

Budgeting doesn’t mean saying goodbye to fun or the things you enjoy. It’s actually the opposite — a budget gives you permission to spend on the things that matter most, guilt-free.

One simple trick is to start with just three categories: essentials, wants, and savings. For example, if you love café hopping or going on holidays, set aside a fixed amount just for that. This way, you won’t feel bad when you spend it — because you’ve already planned for it.

💡 "A budget is telling your money where to go instead of wondering where it went." — Dave Ramsey, financial guru.

It’s about spending with intention, not restriction.

Break the Myths, Own Your Financial Journey

When it comes to money, what you don’t know can hold you back. The more you learn, the more confident you become — and that’s what financial empowerment is all about. Financial freedom isn’t about being perfect; it’s about being intentional, informed, and true to what works for you.

Note: This blog is intended for informational purposes only and does not amount to financial advice. For personalized guidance on your finances, please consult a licensed financial advisor.