There is so much TERRIBLE financial advice out there.
What is true?
What is fake?
Here are 6 pitfalls to avoid in your finances.
There's so much terrible advice when it comes to personal finance and I'm pointing the finger at all the finance people who know nothing and are giving advice and at times that was me, but thankfully I've done a little more research here are six different pieces of financial advice that I encourage you never ever ever ever take but actually instead of saying that taking how about you to do your independent?
Research before listening to anybody or anything because that's what's really important the ability to think and make a decision for yourself. First one is credit cards are the devil. Well just like a coin. credit cards have three different sides heads tails. And the side get a figure out which one is correct for the situation.
I actually just finished and uploaded a video about seven lies about credit cards. I will link to that in the description. However, before you do any any any any any choice with credit cards figure out what's best for your individual situation, they can be very very good tax preparation tools.
However, they can also be the reason why you are burdened with debt. Based upon your own decision. So before you make a decision do your research and I will get that helpful video link as well buying a home is a good idea. There are so many people touting around this idea who are usually a little bit older.
Thank you Boomers my parents age. However, it's not always the best situation again research research research. There are so many benefits to renting compared to buying as an I'll give you about five right now. My first year of homeownership I had rats come in twice and I've someone eating my avocado, which I wanted to murder which I did.
And Home Maintenance the roof the HVAC system making sure it's maintained the lon any plants and shrubs property taxes mortgage insurance if you have that. The list goes on and on and on and on so it's not always the best idea to do it. However, there are some benefits, you know, the equity side.
However. being very very house Rich can sometimes make you very very cash-poor which that means you have a home that's worth a lot of worth a lot of money on the market if you were to sell it, but you're not selling it. However, the payments are burdening. So I'm not going for the equity principle.
Although at times that works. It doesn't help all the time. So do research again. This one is so annoying. So frustrating budgeting every dollar takes too much time really? Well, I do it for my whole entire year. In about one hour and I do plan on doing a tutorial for that. It's in the work. So keep an eye out for that.
But that's not an excuse how many episodes of Netflix TV shows have you watched this week? I would imagine at least a few at 40 minutes of Pop Let's just say three that's a hundred that's two hours of your time. You could have spent. Looking at your budget. Getting your finances in order getting serious about being an adult as opposed to just hoping it works out with your fingers crossed and praying.
I mean fingers Crossing and praying may be a good thing for some things. However, not when it comes to money not when it comes to numbers numbers are finite finite numbers can be defined. So no, excuse the time excuse stop just I'm so sick of it no more get serious about the things that are important and finances are important.
Using credit is for weak people. I've heard this from many people who taught the cash-only principle, which may be a great thing. If you have a bunch of cash sitting around or you have an income that can. Supply Cache, however, if you're making by and sliding by having a credit score is very useful and even if you're not so if you want to rent an apartment.
Almost always they are going to run your credit and run run your score at least or at least your history to see what's going on. If you are totally Off the Grid off the bureau's of credit the likelihood of you being able to rent an apartment go down drastically applying for a job. Same thing. A lot of times.
They will run your credit to make sure. You are a ethical and responsible individual every case is different. It's not like they're going to not hire you because you've gone through financial difficulties or collections or bankruptcy. However, it's always good to have that credit score nice and high and I just finished a video blogging again where I explain how by age 25 I was able to make it to the 800 club, which is a great code to be a part of and I hope to see you there.
I will link to that video as well buying cheap clothing is a good alternative. No, I'm a firm firm firm staunch believer in buying high quality items. Even if they may cost three to four times as much now because I really care about the quality which I kind of do. However, it's the lasting impact.
It's the impact of first off sustainability when it comes to the Earth the last things we put in the landfill the less we have to burn the left. Make carbon jump carbon emissions which can be a good thing. However, also the time principal my goodness. Have you ever been to a shopping mall reselling?
They're kind of dead and kind of vacated nowadays except during the holiday season. It's not fun for me at least to spend a bunch of time looking for something when I can buy something high quality and make it last for years as opposed to something like an H&M shirt for instance that. Six months and it cost six dollars.
It's a good deal. Right? Mmm. I don't know either spend $30 to make it last a few years. So sheep clothing is not a good option. I've heard this so many times debt is the devil avoid it like the plague. Hmm. Well, here's an example. Well more depth has actually helped me a couple years ago. I had to buy a new car my car finally said goodbye.
So I took out a $10,000 watch. Over three years two hundred and eighty seven dollars negative cash flow every single month the interest rate because I had a very very good credit history was two point one nine percent. When money is that cheap it is foolish foolish not to take a loan out. So two point one nine percent was how much I was having a pain interest which over the three-year period.
What's 341 dollars? That is a little over a hundred dollars a year to not have to put the money up front. Also, I had the money sitting in a savings account at about 1 & a half percent 2.19 – 1.5 again, it's foolish not to borrow money when it's that cheap. That's really funny. Now on my high yield savings account, I burning about 2% and paying two point one nine percent interest.
So in reality, I'm really paying zero interest, which is crazy to think about. Well, those are my six terrible Financial advice tips for the day never take them. And if you do make sure to do your own research and really really make sure they're good for you. However, what else have you guys heard that a terrible Financial advice comment below make sure to like And subscribe to the channel and I will see and talk to you guys but along the signal.