The Worst Financial Advice I've Ever Heard
There's much advice out there about how to handle your money. Some of it is good, and some of it is, well, not so good. In this blog post, we'll look at some of the worst financial advice out there so that you can avoid making the same mistakes. After all, when it comes to your money, you want to avoid as many mistakes as possible!
Financial health is essential at every stage of life. It's never too early or late to start making smart choices with your money. From saving for a rainy day to investing for retirement, sound financial planning can help you achieve your goals. And, if you're already retired, maintaining good financial health is essential to ensuring that your nest egg lasts as long as you need it to. This is why it's best to avoid some of these ridiculous pieces of advice.
Here are some of my favourite money myths:
1. Spend like you're rich
Having money doesn't mean you have to spend it all. One of the smartest things you can do with your money is to save it. If you live within your means and save for the future, you'll be in a much better financial position down the road. So, don't go spending like there's no tomorrow—spend like you're building a future.
I was in a group of other women entrepreneurs, and the leader who taught money mindset also encouraged the women not to hold back on spending on themselves. She reasoned that if they believe they aren't worth wealth and buy themselves luxurious items, they'll never attract wealth. That is the most ridiculous thing I've heard, but I could also see some brainwashing she was setting themselves up with so they could buy her $100k programs. That is manipulation, and I felt terrible for the women and men who believe in that type of manipulation. It's a recipe for creating massive debt. I'm not against buying luxury items; just be sure you have the funds to back that up.
2. Money manifestation
Money manifestation is the belief that you can attract wealth simply by thinking about it or visualizing it. While it's true that having a positive attitude towards money can help you make better financial decisions, manifestation will not magically make money appear out of thin air. To manifest wealth, you must be willing to put in the hard work required to achieve your goals.
The law of attraction is a powerful tool, but it's essential to understand that it is not a magic wand. Manifesting wealth does not mean that money will appear in your bank account out of thin air - you still have to work hard for it. The Manifesting process is a way of aligning your thoughts and actions with your desired outcome, but it cannot do the work for you. So if you're hoping to manifest wealth, don't sit around waiting for a windfall. Instead, focus on making wise financial decisions and taking action steps to move you closer to your goal. With hard work and dedication, you can create the life of your dreams - money manifestation or not.
3. Get a credit card as soon as possible
While having a credit card can help build your credit score, using one irresponsibly can lead to debt problems. If you're not sure you can use a credit card responsibly, it's best to wait until you're sure before getting one. And even then, be sure to use it wisely! If you are in credit card debt and want to create your debt repayment plan, read How to Get Out of Credit Card Debt.
4. You can get rich quick
Anyone who has ever fallen for a "get rich quick" scheme knows that the promise of easy money is often too good to be true. In reality, these schemes tend to cost more than they return, leaving victims frustrated and out of pocket.
There are several reasons why get-rich-quick schemes don't work. For one, they usually require a significant upfront investment with no guarantee of returns. These schemes often rely on soliciting new members, which can be difficult and time-consuming. Finally, get-rich-quick schemes often involve complex or risky financial instruments, which can quickly turn sour. For all these reasons, it's best to steer clear of get-rich-quick schemes - the only thing they're likely to generate is empty promises.
Find out How to Become a Self-Made Millionaire Woman.
5. You don't need to save for retirement if you have a good income
This is one of the worst pieces of financial advice I've ever heard. The reality is that you can never start saving for retirement too early. The sooner you save, the more time your money will have to grow. Additionally, if you wait until later in life to start saving, you'll likely need to save much more money each month to reach your retirement goals.
6. You don't need insurance if you're healthy and have no dependents
This is another piece of bad advice. Everyone should have some form of insurance, even if they're healthy and have no dependents. Insurance protects you financially in the event that something unexpected happens, such as an accident or illness. If you don't have insurance and something happens, you could be left with tens of thousands of dollars in medical bills or other expenses that would be difficult to pay on your own.
The bottom line is that when it comes to financial advice, there's much good information out there—but there's some wrong information too. In this blog post, we've looked at six pieces of bad financial advice you should definitely avoid if you want to stay on the path to financial success. Remember, when it comes to your money, always err on the side of caution and don't take any unnecessary risks!
When looking for good financial advice to follow, you can read up on The Top 5 Habits of Wealthy Women to create good financial habits that will build wealth for yourself.
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