Bogus advice all over
When you want to get serious with your finances, it is always best to first do your research about it in its entirety so that you have a better understanding on how to deal with your finances in a wise manner. Some people seek advice from people whose rooftops are falling and then wonder why theirs is falling too.
Listen less and do your research
Reading is a great way to get your self out of a bind. Looking up to people who are not professionally equipped with informative details is a set up for failed financial advice. Having the desire to pursue great information about good financial decisions is a start.
There is some failed financial advice that I have come across and quite frankly, even I, being no expert in financial matters, knew that it was bad advice. It didn’t sit well with me and I have always wondered if people actually give this advice to other people. It is annoying to know that it is crap and yet it is treated by the majority out there as the financial gospel.
Failed financial advice is all over the internet. People set up blogs to mislead others with pointers that only point them to financial mishaps. There are authors of books that are deemed to be of financial expertise, but are selling nothing but mixed facts and half truths.
Below are a few things that you should never do financially. They are all failed financial advice. In actual fact, they get you to spend money, instead of saving it.
The curse of the Credit Card
Whoever invented credit cards must have studied the weaknesses of the human psyche and decided to profit from the inevitable direction a decision takes when given a card that offers you a hefty spending limit. It creates an illusion of being rich and when you hold that card in your hands, you actually start to believe it. You start to think everything can be bought and paid for later. This is the worst failed financial advice you can offer anyone. Credit cards are there to put you in debt. In some cases, it helps relieve your credit score, but in more ways than one, it will wreak havoc to your financial life.
The automatic Bill Pay
When you give your debit payment information out, there is likelihood at some point that some money will be charged that you may not be aware about. They make it seem like they will never charge your account if you don’t authorize a payment, but how many times has money been removed from your account unauthorized?
Signing up for automatic bill pay is failed financial advice. Once you forget to transfer money to pay a bill, your account is automatically withdrawn and you have to pay fees as high as 30 dollars for the lack of funds!
Don’t leave your money in the hands of those who ultimately want it. You have to be in control of your funds at all times and automatically having them take your money; bad things are bound to happen. Some swear this as a great way of paying bills, but if you are okay in having someone else other than you making financial withdrawals at will then more power to you. But when the tough gets going, don’t say you weren’t warned.
Using Credit Cards for the rewards
This can be very enticing once you start using it. Earning rewards for extra cash or vacations. But with time, you start spending more money than if you had a debit card with you.
It is definitely a failed financial advice. Like stated above, Credit cards make you want to spend more and make you feel invincible. Accumulating points is just another way of saying ‘Buy more stuff’, nothing more. A lot of people are still in denial about credit cards. The failed concept for the citizen has worked wonders for the companies that offer these cards. While you wallow in debt, they are swimming in money.
Don’t get a tax refund
I would rather get one than owe any day. Having a tax refund at the end of the year is so financially gratifying. Telling someone not to get a tax refund is giving failed financial advice. What better way to save your money? You get a lump sum of money which you can use to pay off a debt or fix your house.
Rarely do you get this kind of money, so letting the government save it for you is a very good idea. You won’t be able to touch it until you get it in the beginning of the year. How you would discourage someone not to get it is beyond me. Financially, it will help you to save more.