Experts: Avoid These 4 Financial Planning Myths In 2025

2025 is just around the corner, and as shocking as that timeline revelation is, it does put into perspective plans that typically start to formulate at the beginning of a new year. Setting good financial goals is one thing, but avoiding financial planning myths adds a different dimension to building your net worth .

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Despite access to vast amounts of tips and tricks from financial advisors online, many myths still cloud people’s decision-making. To help you navigate your financial future more effectively, sometimes it’s best to seek out the top money experts in real estate, retirement savings, investment management or even estate planning and follow their sage financial advice.

With expert takes from money professionals like Dave Ramsey and Suze Orman, you can navigate these five common myths and misconceptions about financial planning .

Money mistakes the super wealthy never make - that you might be doing now.

Myth 1: Financial Planning Is Only for the Wealthy

One of the most persistent myths is that investing is a privilege reserved for the rich. While this may have been more accurate in the past, the rise of investing through digital platforms and robo-advisors has democratized investing, making it accessible to nearly everyone.

Experts point out that you can start investing with as little as $10 through platforms that offer fractional shares. Here is hoping that by 2025, the barriers to entry will be even lower, with more inclusive financial products designed to encourage wealth-building for people from all income brackets.

Ramsey Solutions Take: “If you believe you’re always going to be broke, you’re probably right. And guess what — what you believe has a direct influence on what you do. So, if you believe you’re always going to be broke, you’re probably not actively seeking ways to get ahead.”

Suze Orman’s Take: “It’s never been easier to buy instant diversification with an exchange traded fund ( ETF ). They work a lot like a mutual fund, but unlike the high initial minimums for investing in a mutual fund (it can be $1,000 to $3,000 to get started with a mutual fund), there are no investment minimums with an ETF. Plenty of brokerages have no minimum to open an account, so once you open an account you can invest small sums in an ETF and instantly own shares of hundreds of companies. That’s smart diversification.”

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Myth 2: All Debt Is Bad and Your Credit Score Is Everything

Debt often carries a negative stigma, but not all debt is created equal. While credit card debt with high interest rates can be detrimental, other forms of debt, like student loans or mortgages, can be considered a form of good debt that helps you build your credit history and improve your score.

These are often investments in your future, helping you acquire skills or property that can appreciate over time. By 2025, experts predict a growing understanding of how to strategically leverage debt to build wealth .

If you do find yourself in the bad type of debt, there is always a way out.

Ramsey Solutions Take: “If you haven’t heard, your credit score is just another word for an ‘I love debt’ score. The finance industry has been working hard to secure the myth that a credit score is what you need to conduct business, purchase a house or buy a car. But the credit score really only judges you based on your relationship with debt.”

Suze Orman’s Take: “If you suddenly find yourself with unpaid credit card balances, don’t panic. You likely didn’t get much in the way of education on how to spend smart, and it’s not always easy to tell yourself no. That said, you must, must, must recognize that this is the biggest fork in your road to financial freedom. Get control over your spending today, and you will have a much better future. Let it slide, and you will likely make credit card debt a chronic part of your financial life, which is going to make it hard to build any sort of financial security.”

Myth 3: You Can Save Money Later

It’s a common belief that you must earn a high salary to save effectively for retirement . In reality, retirement savings depend more on consistency and good habits than on how much you earn.

Thanks to automatic savings tools, employer matching programs and tax-advantaged retirement accounts like 401(k)s and IRAs, even those with modest incomes can accumulate significant retirement savings.

By 2025, experts predict further innovation in retirement planning, including more accessible savings products that cater to lower-income workers. However, making up for lost time is hard when it comes to building your nest egg, so don’t put it off when possible.

Ramsey Solutions Take: “The key to building a solid future with your money starts with budgeting and saving. And it doesn’t start when you make more money — it starts today. The more you can set aside now, even if it’s just a little bit, the less you’ll have to worry about later.”

Suze Orman’s Take: “I know you’re thinking you will refocus on retirement savings once the kids are in college. But that’s a dangerous assumption. Are you sure you will still be working in the same high-paying job that will make it possible to turbo charge your retirement savings? The reality is that many people are laid off from career jobs in their 50s. Just something to consider.”

Myth 4: You Can Rely Solely on Social Security for Retirement

Many people believe that Social Security will cover all their retirement expenses, but experts have long warned against this assumption, especially if you’re years away from actually retiring. Social Security is designed to supplement retirement income, not fully replace it.

With the future of the Social Security program facing uncertainties, experts are advising individuals to diversify their retirement plans by investing in 401(k)s, IRAs and other personal savings options. Depending on the full retirement age, or FRA, based on the year you were born, your work timeline could also be extended.

Ramsey Solutions Take: “ If you wait until age 70 to start receiving retirement benefits, then you’d get monthly payments that are larger than your full retirement benefit (124% of your FRA benefit if you were born in 1960 or later, to be exact)… Let’s say you decide to take early retirement benefits at age 62. That means your monthly benefits payment would be $1,349. But what if you waited until age 70? Then, Social Security would send you monthly checks worth $2,389.”

Suze Orman’s Take: “I also want you to know about an even bigger potential Social Security payoff. Someone who has an FRA of 66 who is patient enough to wait until age 70 to start receiving Social Security, will be rewarded with a benefit that is 32% higher than their age-66 benefit. I want to make sure you took that in: Every year after your FRA up until age 70, your benefit will be increased by 8%. That’s a guaranteed 8%. There is no investment out there today that offers you a risk-free 8% guaranteed return.”

Final Take To GO: Debunking Financial Myths in 2025

The bottom line is that avoiding financial myths in 2025 can set you up for a better financial future if you are planning on retiring in the next 10 to 20 years.

Navigating what money moves to make right now can seem overwhelming but seeking some expert advice just to get your foot through the door of investing wisely is the first step to creating a financial plan you and your family can count on.

This article originally appeared on GOBankingRates.com : Experts: Avoid These 4 Financial Planning Myths In 2025