5 Pieces of Money Advice to Be Wary Of
Money is one of the hottest topics that have ever been discussed. Lots of people strive to earn more and afford more. And those who prove to be unable to stash enough cash often seek advice from pundits that promise to set them on the right financial path. But should you take expert money advice at face value? Not all of them.
Below are five pieces of advice and money philosophies of which you should be wary.
#1 Carry a balance on your credit card to improve your credit score
It could take ages to explain where this myth comes from. But what is important for you to know is that it’s 100% false. There is never a need to carry a balance on your credit card from month to month by not paying it off in full.
The best practice for both your wallet and a healthy credit score is paying your credit card bill on time and in full. This will help you prove your reliability and get higher credit approval rates. So, you’ll always have money to buy a cute date night box or even pay your rent.
#2 Renting is a waste of money
Speaking of rents! Undoubtedly, you’ve heard other people say that renting a house or apartment is a rip-off. And it’s much cheaper to invest in your property. Well, while this opinion isn’t devoid of common sense, you have to do the math to determine whether or not to agree with it. Maybe, you live in an area where the property taxes are low. So, it might be reasonable or affordable to buy a home there. In this case, it doesn’t make sense to give your hard-earned money to some landlord. But what if you live in a high-cost-of-living area, where home ownership seems completely unattainable, at least in the short term? It’s totally OK to be a renter! Plus, some people can really use the flexibility of not being a homeowner at the start of their careers when they’re not sure where they can end up in the next year or two.
#3 The universe will provide
There’s certainly nothing wrong with charitable giving and religious beliefs. However, you would be well advised to be wary of gurus promising you can manifest money just by focusing on the laws of attraction. Some religious organizations might convince you that god will endow you with wealth if you just make a hefty donation today. For one, it takes control and empowerment completely away from you to create wealth for yourself because the universe will bestow it. And two, it puts the entire burden on you if you fail to attract money correctly. It’s great to be a positive thinker and have specific goals you want to achieve. But it’s also important that you put in your sweat equity to make them happen.
#4 Treat yourself
Much to the disappointment of many people, ‘treat yourself’ is a terrible piece of money advice. There are moments you can splurge, preferably, when you’ve saved up to do so, but not at the risk of your financial situation. There are too many times (suffice it to mention the wedding industry) that people invoke the idea of ‘treat yourself’ or ‘you deserve it’ to overspend or even incur debt.
#5 You are your best investment
This is a controversial take, of course. But adages like ‘you are your best investment’ or ‘if you do the job you love, you’ll never work a day in your life’ can be a bit dangerous. The reason you’re your best investment can be bad advice because, at some point, you can overinvest. You can put yourself deep into debt in pursuit of your dream or a business idea that just may never pay off. So, while you should believe and invest in yourself, you should also set up parameters and have people who can hold you accountable.
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