When it comes to planning your finances, you usually seek financial advice from people and experts around you to make your position more stable and never fall into any financial crisis. But do you know that not every financial advice is true and if you follow it instead of gaining benefits you can face major issues? That is why there is some major financial advice you should avoid and know that they are not really a benefit, along with these ten bad pieces of financial advice you will also get to know how they are harmful in long financial planning:
1. Don’t worry about student debt and loan:
When you or your children are selecting colleges and universities, we always talk about the student debts and loans. It is one of the most underestimated elements that we ignore.
Do you know that some people are unable to pay the interest and amount of student loan even after ten years of taking it?
It’s true that not only these loans consume a big chunk of your income and monthly budget, but it will continue to do so for many more years to come. That is why taking these loans can be the worst financial advice you can take in your life. Instead, you can try any other financial support to study and avoid many problems related to it.
2 - Pay taxes when you wish:
You can save lots of money if you never overdue your taxes and make it as low as $0. That is why discuss it with your CIS Tax Return Experts and get the best deal which allows you to save more efficiently and without doing any more efforts.
3. Keep trading your old car with a new one:
We have heard it many times that you can update your car with the better car by just adding more amount in it. But buying a new car can not only cost you a handsome amount but also if you take a loan you have to pay interest and amount to the bank. This entire amount needed to pay from your income and salary reducing the amount you have in hand. That is why if you change your car very often, it will lead you in the long-term of debts. On the other hand, if you save money from your income and update the car from cash, it will cause less harm and allow you to save additional money on your interest.
4. Carry a credit card balance is good and effective:
Well carrying a credit card is a good option but it can be a terrible financial advice that you carry out a credit card balance. It not only makes you a compulsive shopper and takes your money out of your pocket without many realizations. Also, the additional interest can be really hard to pay and your money can slip away from your hands without much knowledge.
5. Buying a house is better than renting it out:
Well, its one of the biggest myths related to the financial advice I have seen many times. When you buy a house, you have to pay loans and interest and many more issues come along with it. Moreover, you can end up being bankrupt cause by just buying a house for yourself. That is why when comes to buying or renting the house you can always see how much money do you have in the pocket and how much more you need to buy it. On the other hand, you can rent out the house for living and save money to buy one in the future.
6. Don’t save for retirement plan until you are old:
If you don’t save it today, you will never have enough to save tomorrow. Also as you age your life and job become unpredictable. That is why start saving for your retirement plan today instead of tomorrow before it’s too late.
7. You don’t need to plan monthly budget:
For those believe the monthly budget is useless, think twice before applying it in your life. On the other hand, if you plan your expenses on a monthly basis you can save much more money and able to spend when it requires the most.
8. Pay your bill just before due date:
Don’t wait for the due date to arrive, pay your bills as soon as you get them ideally and if you can’t, make sure that you pay them as soon as you receive your money in the account. You can also make your bills automated using various financial tools, it helps you pay your bills first thing when the month starts and your salary falls in your account. This method prevents any issue from causing like missing it the date and also make sure that your expenses are paid before spending.
9. Save money when you have it:
It should not save this month, but instead, I will save in the coming months!
I know you have thought about it all the time, but it is not a good approach to do it. On the other hand before doing anything else you should take out some amount of money to save. It can depend on your income and also at your expense but make sure that you do it before spending your money.
10. You don’t need a financial planner:
If people say that you don’t need a financial planner, think again. You can save much more bucks by simple consultancy and planning from a financial advisor.