One way or another, you must have encountered financial advice at some point. And often, such guidance could be tempting, making you want to take quick action on it.
But, before you give in to such recommendations, you should know that when it comes to finances, much of what you hear can be outdated or of no use. It would be best if you stayed away from such counsel to avoid causing a massive blow to your hard-earned money.
To help you comprehend this better, we’ve prepared a list of the financial recommendations you should avoid following. Read this, and store the pointers your mind so that you don’t make a blunder with your finances.
When someone says “budgeting is essential”
Yes, budgeting helps you have control over your expenses and save some cash. But for some people, it’s a headache to jot down every little cost. An anti-budgeting advocate recently wrote about how he saved nearly $325,000 in his 20’s without any budget.
When someone says “renting is like throwing money away”
We bet you’ve heard this a million times! But trust us, it doesn’t work. If you need a house for a short while, renting is the best strategy. And that’s because, according to experts, to cover the amount you’ve spent in buying and selling you have to live in a house for five to seven years.
When someone says “high risk means high returns”
People often say, “the more money you invest into something, the more returns you get.” Well, this saying isn’t true. Many times you can go on putting money into something and still get only losses out of it. It’s best to stay away from such tumbling investments.
When someone says “if you borrow money, you’re robbing your future self”
While borrowing without a genuine reason when you can’t repay is discouraged, if you’re doing it for the right reasons and are determined to pay it back, there’s nothing wrong with borrowing.
For instance, if you borrow money to further your education, we don’t see it as robbing your future self. Your future self will only thank you for doing it.
When someone says “don’t waste money by buying in bulk”
People often suggest that if you don’t need something soon, don’t buy it at the moment. That’s true for things that can perish with time. But in the case of stuff that can last years, you can save quite a lot by buying in bulk.
Be cautious not to cross the limit, though since there may be others who need that stuff more than you.
Wrapping it up
We hope our list above helped you understand some crucial facts, and you’ll be able to steer clear of these not-so-good financial suggestions. Be diligent with your finances; that is the best way to save and make your money grow.