25 Common Money Advice That You Should Completely Ignore!

if I could give just one piece of advice to my younger self it will be this there is a lot of BS money advice out there ignore them honestly money advice is everywhere you hear it from friends family Tik Tok experts and even your neighbor who suddenly became a cryptocurrency guru but not all advice is good advice and blindly following outdated or oversimplified tips can c cost you big time in this video we're diving into 25 of the most common money advice you've probably heard and why you need to stop listening to them right now I'm not just debunking money meat here I'm talking from my own personal experience and I'm giving you the mindset to stop falling for bad advice and take control of your money money advice number 14 and 19 are Classics watch out for them have you ever heard someone say renting it's like pouring money down the drain I hear it all the time so money advice number one to ignore is renting is just throwing money away I even heard that advice this morning now here's what I think owning a home isn't always the better option between property taxes maintenance cost and Market fluctuations home ownership can quickly drain your savings renting can be the a smarter move if it means more flexibility or it allows you to invest elsewhere owning a home isn't the only way to build wealth it's just one option among many and renting is not throwing money away this famous coffee advice is very popular but it's overrated so money advice number two to ignore is cut your daily coffee to save thousands of dollars cutting your $5 coffee every day won't magically make you rich yes small expenses add up but the real impact comes from managing Big Ticket items like housing cars loans and Investments if your coffee gives you Joy like it does me and fits your budget keep it focus on cutting unnecessary big expenses not your daily coffee maybe for you it's not coffee but whatever it is keep it if it gives you Joy moving on if you think a six figure income is the ticket to Financial Freedom think again and that is the main reason you should ignore money advice number three which says a high salary guarantees wealth a high salary is great for sure but it doesn't guarantee wealth without proper money management even a big paycheck can disappear just as fast as it comes in lifestyle inflation which is the urge to spend more as you earn more can leave you leaving paycheck to paycheck regardless of how much you earn wealth isn't about what you make it's about what you keep this next one You definitely should ignore because I know millionaires that have budgets because they need them so money advice number four is you don't need a budget if you earn enough you should ignore this because without a budget you're just guessing where your money is going and that's dangerous a budget isn't about restricting yourself it's about understanding your spending and maximizing your goals no matter how much you earn a lack of planning can lead to overspending debt or even missed opportunities to save and invest you need to budget money advice number five is you must get a college degree to succeed financially it's not true agreed I have a college degree and I think that a college education is important no doubt but it's not the only path to financial success trades entrepreneurship and certifications can often lead to lucrative careers without a college degree and if you dig deep some of the wealthiest people skied traditional College Al together please go to school if necessary but focus on skills and opportunities not just diplomas now let's talk about investing while doing your own investing sounds empowering it's not for everyone some of us need help and that's why you should not pay any attention to money advice number six which says never use a financial advisor do it yourself financial advisors can provide valuable guidance especially for complex situations like tax planning or Estate Management even experienced investors sometimes rely on Professionals for second opinions the key isn't to avoid advisors entirely but to find one who aligns with your goals and charges Fair fees money advice number seven is debt is always bad that's not true it's not true at all first of all not all debt is created equal High interest credit card debt is bad but a mortgage or a student loan at a low interest rate that can be considered good debt if it improves your future financial position thatt is simply a tool it can help or hurt depending on how you use it learn the difference so you can leverage it wisely while being debt free sounds great rushing to pay off a low interest mortgage might not be the best financial move instead consider investing that extra money in a highin investment so when you hear Money advice number eight telling you that it's better to pay off your mortgage early take it with a pinch of salt there are many Investments that will provide higher returns than the interest you save on your mortgage besides paying off your home paying off your home too early could leave you cash strapped in an emergency no one is chasing you so don't pay back if you are not under pressure to do so believe it or not I used to believe money advice number nine for a long time until I realized it was BS to a large extent money advice number nine says only buy name brand products they higher quality main brand products are good no doubt but now I know that many generic or store brand products are just as good as their name brand counterparts whether it's food medication or even household items you often pay more for the brand name than the actual product itself a quick comparison of ingredients or reviews will convince you and can help you save without sacrificing quality we are at money advice number 10 and this one says buying new is always better than used the truth is we all love new but whether it's cars furniture or Electronics new is sweet but buying used can save you a ton of money new items lose money quickly you know like that car that depreciates the moment you drive it off the lot have you heard that before if you're smart about buying secondhand items you can get Nearly New Quality for a fraction of the price of a new item try it now just because you can afford the monthly payment on something does not mean that it's a wise purchase but that's what money advice number 11 says it says that as long as you can afford the payments you're good H not so much stretching payments over long periods often means paying way more in interest than if you purchased when you have the money so use this tip always look at the total cost of your purchase not just the monthly payment and that will give you an idea if that is a good purchase or not and please avoid financing things like Vacations or expensive gadgets if you can't pay in full money advice number 12 is not a good one and I wonder where it came from it says you don't need a wheel until you're old it's almost cliche but it's a very common and terrible advice thinking a will is for retirees is a common mistake if you have assets and dependent a will is essential without one if something happens to you the government decides what happens to your belongings and it's not always what you would have wanted if you had a choice it's never too early to plan for the unexpected and making a will does not mean that you will die I'm talking to you because that thought just crossed your mind don't lie now let's talk about savings even though we all know how important savings are money advice number 13 tells people that they need to be debt free before they can save hello this advice ignores the power of compound interest yes I agree do pay off high interest debt first but don't put off savings entirely building an emergency fund or investing a little each month ensures that you're prepared for the unexpected you can tackle debts and save simultaneously it's all about balance money advice number 14 is IC and I want to knock the head of everyone who gives this advice and the advice is you should always say yes to overtime oh my God extra hours mean extra pay I know but overtime can come at the expense of your health your relationships or your long-term goals I'm not saying never say yes to overtime if I did you will stop watching this video right now I didn't say that but instead of saying yes to every overtime opportunity say no sometimes and focus on growing your skills pursuing side hustles or investing that way you may not need overtime that much anymore your time is valuable spend it wisely not just on more hours at work money advice number 15 is you can skip insurance if you're healthy or young this is another Insurance hting advice skipping Insurance whether it's health insurance life insurance CRI IAL illness insurance or any kind of insurance at all can be a costly gamble a gamble that many of you are taking emergencies don't care about your age or your health status and one unexpected event can wipe out your entire savings Insurance isn't an expense it's protection for the life that you're working hard to build ignore this advice and stop giving it to others yourself I know everyone has heard the saying that money cannot buy happiness but not many people care while earning more money can improve your quality of life note that it doesn't guarantee happiness and even though money advice number 16 is quite popular in some quarters where you hear people say the more money you make the happier you will be studies show that after your basic needs are met additional wealth has diminishing returns on your happiness meaning more money might not necessarily make you happy so focus on Financial Security for sure but remember to invest in experiences relationships and your mental wellbe as well if you're finding this helpful or even one advice has struck you don't forget to like and leave a comment now on to money advice number 17 this one says that having a job is enough to build wealth well not exactly relying solely on your salary is risky in today's economy jobs can be lost and salaries don't always grow as fast as inflation so Building Wealth requires a mix of savings Investments and possibly creating multiple income streams a job is a start but it shouldn't be your only plan money advice number 18 is both harmful and untrue and it says it's too late to start saving if you're over 40 and I'm wondering if it's too late should they not even invest at all I agree that starting early gives you more time but it's never ever too late to start saving and investing even after 40 years old we say in my place that the time you wake up is your own morning even small consistent savings later in life can make a big difference the key is to start where you are and stay consistent time and discipline are your best friends in this money advice number 19 is very popular and I feel that business people spread this one and it says buy now because prices will only go up says who this is just foro at work foro or fear of missing out is real but it's a terrible strategy for making major purchases whether it's real estate stocks or a car prices FL to it it can't always go up haa rushing into a purchase because of fear often leads to overpaying or regretting your decision later take the time to evaluate the market and your financial situation before jumping in money advice number 20 is very popular especially when talking about emergency funds this one says you should have six month salary saved at all times well the idea of a six-month emergency fund is a solid advice but it's not Universal it is not set in stone and it should not put you under any kind of pressure if you're in a stable job with low expenses 3 months might just be enough equally if you're self-employed you might need a Year's worth of emergency fund the key is to tailor your savings to your lifestyle and your risk level don't stress over arbitrary numbers just focus on what makes sense for you money advice number 21 says never borrow money for a business okay these are people that hate any form of debt but now while avoiding that sounds wise the truth is many successful businesses started with borrowed money if you have a solid business plan and a clear path to profitability borrowing can be a smart way to grow the key is knowing when and how to leverage debt not avoiding debt altogether wow we are already at number 22 and this one concerns all of us and it's classic money advice number 22 is you should never mix friends or family with money people who say this have been borned it's great advice if you know what I'm talking about but while caution is important this advice oversimplifies the reality of life sometimes lending money or starting a business with a trusted friend or family member can be a great decision sometimes it's not it can swing anyway but saying never to mix friends and family with money is reaching too far the key is to set clear boundaries write everything down have a contract and treat it like a professional Arrangements money advice number 23 says that high interest savings accounts are the best place to keep your money okay High interest savings accounts are great for sure but while they are great for shortterm savings they are not ideal for long-term wealth building inflation often outpaces the interest that is earned meaning that your money loses purchasing power over Time Investments like ETFs or mutual funds are better options for growing wealth focus on those instead have some high interest savings accounts of course but only for shortterm goals money advice number 24 is not a good one I don't like it it says this that you can't save money if you have kids H is that why some people just don't want children I agree that having children can strain your finances but it doesn't make saving impossible what about the joy of children what about that anyway budgeting cutting unnecessary expenses and planning ahead can help you manage costs while still building your financial future even if you have children children don't have to derail your goals they just require more planning no matter how much pressure you might be feeling to start a business please note that not everyone is cut out for entrepreneurship and that's okay and that's also why you really really need to ignore money advice number 25 that says you need to own a business to be wealthy many people build wealth by working traditional jobs investing wisely and leaving below their means owning a business is just one path but it's not the only way to Financial Freedom take that advice with a pinch of salt remember money is personal financial advice isn't one size fits all what works for someone else might not work for you so stop blindly following one siiz fit all advice and start questioning everything always question what you hear and tailor it to your own goals and situation so tell me which of these money advice surprised you the most let me know in the comments if you found this video helpful don't stop here watch this six secret strategies to legally pay less tax in Canada next you'll be amazed at how much more you can save thanks for watching