The 5 myths about saving money every smart woman should know.

Credit cards are unsafe

Paying with credit gives you extra protection in terms of fraud and allows you to borrow money in times of hardship or emergencies. In terms of travelling credit cards are the safest option. Most hotels only accept credit cards for liability and insurance reasons. Also if you lose your wallet you will most likely never see the cash inside again.

However, if you have a credit card you can just cancel the card and get a new one and your money will be protected. With credit cards there are rewards for those who spend more. This can be a good incentive as long as you pay back the money in time to avoid high interest rates. The use of a credit card can improve your FICO score which will allow you to borrow more money.

You need to be rich to invest

This is not true. You become rich by investing. Even if you start by investing in one or two shares you could experience capital gains and those shares will grow.

Any investment is a good one, small or large. Start investing in companies early on to broaden your financial portfolio. If you’re not sure which companies to invest in you should invest in companies to do with your interests and passions.

I have a high income so I must be rich

This is a big misconception. High income doesn’t equal wealth if you’re spending it on temporary assets that don’t reap any return. Someone whose assets are higher than their liabilities will be wealthier than someone who has a higher income but also a large amount of debt. It is all about spending money wisely, investing in valuable assets and generating income.

Renting gives you freedom

With renting you aren’t earning equity like you would on a home. Therefore, it is better to save up and purchase a home than pay rent. With renting you have no power over the property, the landlord does. Once you’re locked in, it’s difficult to get out of a lease. Often you have to pay fees to break your lease. It is a better investment to buy a house than rent a property.

Saving money makes you rich

Not true. Although saving money does contribute to your overall wealth, most of it comes from your income. A lot of money problems come from not too much spending but not enough income generation. Those who want to be wealthy should consider taking up a career with a high income or investing in assets that will increase equity.

By employing strategies to combat these five myths you will be well on your way to managing your personal finances smartly and securely.

This post originally appeared on The Ascent, you can read it here. If you want to educate your kids now so they can be financially secure and independent when they’re teenagers, Pennybox is a free app that can help. You can access the beta here.

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