When seeking advice, many people are interested in asking others about ways to stay financially successful and savvy. Finances are something that many people struggle with, especially at a young age. Therefore, they look to seek out advice on how to better their financial standings.
However, not everyone’s advice is “good.” In fact, sometimes, people give advice that overall is pretty bad.
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This doesn’t seem like a great idea.
“My cousin bought a camper, went camping once, and then decided camping wasn’t for them. Rather than selling it they decided to just stop making the payments and “let the bank come and get it.” Which, eventually, they did,” one person said.
Letting your mom “keep hold of your money.”
When you’re a kid, many times your parents say they will hold onto your money for you.
Some people shared that their mother and fathers held their money for them, and then they never saw a dime of it later on.
Going above your means.
“My aunt took me to a car dealership when I was looking to buy my own first car. I was looking at the clunkers I could afford, but she said I should be looking at the new cars. She said, ‘the total price doesn’t matter because you make monthly payments,'” one shared online.
Take out loans, even if you can afford college.
One person shared on a Reddit thread that a public university told them that they “shouldn’t” pay their tuition in full, even though they could, and instead should take out the loans to see the “full value of their education.”
Only pay the minimum on credit cards.
[Many people] online shared that a lot of individuals tell them to “carry over” the balance of their credit card month-to-month and “only pay the minimum” balance to build credit.
On multiple cards. This definitely backfires in the long run and does not help your credit.
You don’t need a retirement plan!
“My FIL when I mention our retirement plan ‘I never contribute to my retirement account. Money now is always better than money later.’ I needed to have a conversation with my husband how we would NOT be supporting his mom and dad,” shared one wife on Reddit.
Emergency funds are unnecessary.
One person shared that many people talked him out of “emergency” funds and “rainy day” savings, as it’s easy to take out a loan or even use your credit card in the meantime if you need the money that badly.
Spend that money you have.
Another person shared that you should spend the money you have leftover in your bank account the day before you get your paycheck because that money is obviously not “needed” if it’s still in your account and not spent at all.
Going to the ER is totally free.
“I used to know a guy whose family had always told him while he was growing up that the ER was free. He was getting his mail sent to his family home for years as an adult. One day he needs to buy a car and guess what? His credit is trashed,” one person said.
Cutting up a credit card means it’s completely done forever.
One Reddit user shared that her cousin used to tell her that if she owed a lot of money on a credit card, you can just cut it up, and then you don’t have to pay it off at all.
Open up as many credit cards as you can.
“A friend’s family taught them to take out as many store cards and credit cards as they could, and as long as the minimum was paid, they’d be able to live a luxurious lifestyle.
They were almost $100k in debt when they finally told me,” one person shared.
Rent, don’t buy.
In 1976, one person said they were talked out of buying a home for only $35,000 and to keep renting instead.
Decades later, they went back to the neighborhood in San Francisco and saw the same homes going for $1 million.
Do it for the “free stuff!”
“About 5 years ago, I had a friend who was trying to convince me to study through a private college because they “gave her a free iPad.” he never finished the course but kept the iPad. Four years later, I get a call from the college asking for her contact info,” one person shared.
Don’t take the raise.
Some people say that they were told by coworkers and family that taking a raise of working overtime is “foolish” because it would put them into the next tax bracket, which can be hard and backfire in the long run financially.
Collections calls can go to voicemail.
“‘Just ignore the collection call and eventually they will leave you alone….’
I didn’t follow this advice. I had a parking ticket I didn’t know about that ended up on my credit and the guy I mentioned it to gave me that bit of wisdom,” one person said.
