Six Basic Personal Finances Facts People Constantly Get Wrong

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:

1. A Higher Tax Bracket Does Not Mean All of Your Income is Taxed More
2. When you Sell an Investment, You Only Owe Taxes on the Gains, Not on Everything
3. Putting Money in your 401(k) Doesn’t Mean Tax-Free Income, It Just Means you Pay the Taxes Later On
4. Renting Isn’t Just Throwing Money Away and Buying a House Won’t Make you Rich due to “Equity”
5. Having a Big Tax Refund Costs you Money
6. If you’re Unhappy, Having that Thing You Want Most Won’t Make you Happy

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