According to a recent article on LifeHacker, it seems that there are a lot of financial “facts” out there that actually aren’t facts at all. No wonder there’s so much confusion regarding personal finance!
Below are six facts that people often get wrong:
- A Higher Tax Bracket Does Not Mean All of Your Income is Taxed More
- When you Sell an Investment, You Only Owe Taxes on the Gains, Not on Everything
- Putting Money in your 401(k) Doesn’t Mean Tax-Free Income, It Just Means you Pay the Taxes Later On
- Renting Isn’t Just Throwing Money Away and Buying a House Won’t Make you Rich due to “Equity”
- Having a Big Tax Refund Costs you Money
- If you’re Unhappy, Having that Thing You Want Most Won’t Make you Happy