Social media platforms have brought about many influencers to teach, talk about, and even try to influence people on their money decisions. Honestly, there are a bunch of grifters out there trying to make it for themselves. Then there are those trying to help people create wealth and do well financially.
Here are 10 of the Worst Financial Pieces of Advice That is Making You Poor
1. Carry A Balance On Your Credit Card
Whoever gave this advice does not know what they are talking about. Carrying a balance on your credit card will show that you cannot pay your bill on time. The interest rate on the balance is anywhere from 15-26%, and the compounding effect on that can be so significant that you could be stuck with credit card debt for a long time.
Take this piece of advice. Pay off your bill at the end of the statement every month. No balance means no interest on your payment. If you can’t pay for it then don’t buy it.
2. Save 10%, And You’ll Be Set
Saving is significant for the budget and for getting you ahead. Breaking that paycheck-to-paycheck cycle is one of the best things, but only saving 10% is no way to be set. A 10% savings rate that is invested will allow you to stop working in 51 years. So if you start work at 22 years old, you can retire at 73.
The more you save, the less time you have to work. At 15%, you can stop working in 43 years. That is the whole eight fewer years by saving an additional 5%. So try to keep as much as you can early on.
3. YOLO (You Only Live Once)
People say life is short. That is true, but if you live to be 100 years old, spend all your money, and never save, that life will feel very long. Try to save money to have it when you need to retire. It is better to be prepared than have spent everything and need to work until you are in your 80s.
4. Never Use a Credit Card
Credit cards get a bad rap for credit card debt. Some people need to improve their finances and not overspend. That is why they must learn to control their spending with better budgeting and personal finance education.
Credit cards are not evil. They give great sign-up bonuses, some which can reach up to over $1,000. They also help you get some cash back on the items you already pay for. They give insurance and warranties and protect you from fraud. They can even help build your credit if used correctly. So they are a helpful tool.
Don’t be afraid; get educated and use credit cards to enhance your wealth.
5. Renting is Throwing Away Your Money
Owning homes is a costly undertaking. It can be expensive, from property taxes, property maintenance, homeowners insurance, interest on the loan, and so many other things.
Renting can give you options. If you need to move, you can go without putting up your house on sale, find a new place to buy, and miss opportunities.
6. Crypto is The Future
Cryptocurrency may be the future, and it may not be the future. Who knows what will happen in the future? We could be trading coffee beans as our primary currency. If some people try to influence you on cryptocurrency is the future, research and figure out what you should do. Just know that we may not know what the future holds.
7. College is Useless
A recent Forbes Study, showed that a college education gives more job opportunities and higher salaries than those without a college education. In 2021, the year after the pandemic started, 86% of college-educated people had jobs, while only 68% of those with high school diplomas were employed.
A college education opens up more doors than not having one.
8. There is No Such Thing As Good Debt
There are plenty of places where debt is good. If you can pay for something that brings value to your life, it can be good debt. Buying a house can be considered good debt. It allows you to have a place to live and create a habit of saving money as you pay your mortgage monthly. Business loans can be good debt.
9. Don’t Worry About Saving; Just Earn More
Earning more does not mean you are saving more. If you are not saving now, what makes you think you will save when earning more? The best place to look is to cut expenses that are not necessary. If you can work on trying to save 10-20% of your income, then earning more will increase that. So living on less is much better.
10. Investing is Gambling
With gambling, the odds are stacked against you. Investing is much different. There is a history of investing in the S&P 500 will make you rich. The markets go up and down, but buying a simple index fund that follows the market will do well enough to create great wealth. Many people have made their fortunes from just simply investing.
The 10 Things Rich People Never Waste Their Money On – And You Shouldn’t Either!
Do you ever wonder why some people are so much wealthier than others? Well, one big reason is they know what not to spend their money on! That's right – wealthy people have a secret that helps them stay rich. They know how important it is to be frugal and budget wisely, which means being very selective about where they choose to put their hard-earned cash.
The 10 Things Rich People Never Waste Their Money On – And You Shouldn’t Either!
10 Pitfalls To Paying Off Your Mortgage Early
n an online financial forum, a user is worried that by paying off their mortgage early, they might have less available money for other things. They're concerned that putting so much money towards the mortgage might limit their ability to comfortably cover their other expenses, which is sometimes called “house poor.” They want to make sure that focusing on paying off the mortgage early won't negatively impact their overall financial situation. His concerns trigger several reactions from other users.
10 Pitfalls To Paying Off Your Mortgage Early
12 Night Jobs That Pay Well and Won’t Make You Want to Scream
Night jobs have a bad reputation for being low-paying and unfulfilling. They are considered tiring, exhausting, and thankless. Even some jobs don't even pay as much as they should. This is why many people tend to avoid night jobs and choose daytime employment instead. But the truth is, plenty of night jobs out there pay well and won't make you want to scream.
12 Night Jobs That Pay Well and Won’t Make You Want to Scream
11 Surprising Ways to Save Money You Never Knew About!
As costs of gone up, many of us are looking for ways to save money. It can be challenging to find things that save money. Eating at home, cutting the cable, and driving less are things we may already be doing, but here is a list of some surprising ways to save money. Some of these you may have never heard about.
11 Surprising Ways to Save Money You Never Knew About!
The 12 Biggest Expenses That Hit Harder After Retirement
Retirement should be a time of relaxation and enjoyment – but financial stress can often rain on your parade if you're unprepared. You've worked hard all your life; now it's time to enjoy the fruits of your labor. But what happens when those fruits aren't as sweet as you thought? The reality is that certain expenses can hit harder once you bid adieu to your 9-5 job.
The 12 Biggest Expenses That Hit Harder After Retirement
This thread inspired this post.
I’m Steve. I’m an English Teacher, traveler, and an avid outdoorsman. If you’d like to comment, ask a question, or simply say hi, leave me a message here, on Twitter (@thefrugalexpat1). Many of my posts have been written to help those in their journey to financial independence. I am on my journey, and as I learn more I hope to share more. And as always, thanks for reading The Frugal Expat.
