A Quick Look at Money Advice You Shouldn’t Pay Attention To

Advisor February 13, 2021

There’s no shortage of advisors in today’s world. But the sad part is that while finding genuinely helpful advice is like spotting a rare diamond, coming across ill advice is pretty common. People probably don’t realize that something that might have worked for them may not work for you. And hence, a one-size-fits-all approach isn’t always ideal.

Unsplash | People with half-baked money knowledge often pass down advice that you’re better of ignoring

This is especially true when it comes to finances. People with half-baked money knowledge often pass down advice that you’re better of ignoring. And just so you have an idea of what we’re talking about, we’ve compiled a list of some such counsel which you shouldn’t follow.

Have a look.

Don’t use credit cards

Probably one of the most common things you’ll hear is that using credit cards isn’t good. But in reality, it isn’t the credit cards that are at fault; it’s their users who don’t pay their bills on time. Responsibly using credit cards is actually better than not using them at all.

Credit cards help you earn reward points, which can be used to gain benefits like low-cost travel or shopping vouchers. Plus, you can also avail of cash-back offers on the usage of credit cards when shopping from eCommerce websites like Amazon.

Read – Best use of reward points given by credit/debit card companies

Unsplash | Credit cards help you earn reward points, which can be used to gain benefits like low-cost travel or shopping vouchers

Avoid spending on a house-help

Agreed, hiring a house-help will take away from your monthly budget, and it can really pinch if you have a restricted income. But if you’re earning well by putting in several hours of your day into your job, and managing household chores also, have you evaluated at what cost you’re accumulating wealth? Evaluate the worth of a house-help not in terms of the money you’ll spend on them, but they will allow you to spend with your family or do something productive in terms of the time.

Buy a house rather than paying rent

Owning a house is a big decision indeed. It comes along with never-ending financial responsibilities. From paying interest on the installments to property taxes, everything needs to be taken care of. Why take such a heavy financial responsibility when you can easily pay a fixed monthly rent and be done with it? Instead of thinking of rent as a waste of money, keep in mind that when buying a house, you have to factor in its associated long-term costs in as well, and as compared to that final amount, paying rent is way better.

Rent – Renting v/s owning a house

Unsplash | Why take the financial responsibility of owning a house when you can easily pay a fixed monthly rent and be done with it

Final words

When someone gives you financial advice, taking a second opinion might be a good idea. In fact, you should accompany that with your own research to be thorough. Blindly following a financial expert might not be good in the long run. Instead, follow the golden rules of saving regularly and prioritizing your expenses. Just these two practices can land you in a good financial position within a few years.