Money Myths You Need to Stop Believing in 2025
Money advice is everywhere. Your parents, your colleagues, even that one friend who just discovered crypto and won’t stop talking about it. But not everything you hear is true. Some financial myths have been around for so long that they feel like facts, but in reality, they might be stopping you from making smart money moves.
Let’s bust some of the biggest money myths people still believe in 2025.
1. “Gold is the best investment”
Indians love gold. It’s even considered auspicious to buy gold during festivals, weddings, and any major life event. And while gold is a great hedge against inflation, it’s not always the best choice for long-term wealth building.
Recently, the government lowered the tax on importing gold from 15% to 6%, making gold cheaper for buyers in India. As a result, gold prices fell by over 8%, from ₹74,080 to ₹68,388 per 10 grams. While this was good news for those looking to buy gold jewellery at a lower price, it wasn’t the same for investors holding paper gold (like Gold ETFs and Sovereign Gold Bonds).
Gold’s price is heavily influenced by government policies, global demand and currency fluctuations, making it less predictable if you compare it with other investment options. Over the years, mutual funds, stocks, and even REITs (real estate investment trusts) have delivered higher long-term returns compared to gold.
So yes, gold has a sentimental value, but if you’re looking to grow your money, consider diversifying into other asset classes as well.
2. “Fixed deposits are the safest and best way to grow your money”
Your parents probably told you that FDs (Fixed Deposits) are the safest way to save money. And they’re not wrong; FDs are safe, but the problem is their returns often don’t keep up with inflation. That means over time, your money could actually be losing value.
If you want your money to grow with time, consider diversifying into mutual funds, index funds, or even stocks. These options do carry some risk but offer better long-term growth compared to traditional FDs.
3. “Life Insurance is a good investment”
Many people buy endowment or money-back policies thinking they’re making a smart investment. But the truth is, life insurance should be for protection, not investment.
If you want to secure your family’s financial future, a term insurance policy is a much better choice. It offers high coverage at a low cost.
4. “You need a lot of money to start investing”
This might have been true a decade ago, but in 2025? Not at all. Thanks to digital investment platforms and SIPs, you can start investing with as little as ₹500 per month.
Whether it’s mutual funds, ETFs, or stocks, small but consistent investments over time can grow into significant wealth. The key is to start early and be consistent.
5. “Credit cards are bad and should be avoided”
A lot of people treat credit cards like financial enemies. But honestly, credit cards are only bad if you misuse them. When used wisely, they offer cashback, rewards, travel benefits, and most importantly, help build your credit score.
The trick is to pay off your full balance every month to avoid interest. Done right, a credit card can be a powerful financial tool and not a debt trap.
Believing in outdated money myths can keep you from growing your wealth and making informed financial decisions. Whether it’s investing in gold, avoiding credit cards, or thinking FDs will make you rich, it’s time to rethink the way we approach money.