There’s a mountain of information and money tips out there, but not all of it is useful. Some of the money tips dished out to us can actually set us up for a major financial fall-down. Therefore, there are certain money tips that we would be better off ignoring.
When you hear the following 5 money tips, you may want to let them go in through one ear and out through the other one:
1. You must attend college if you want to make good money
Many people rush to college to get degrees and diplomas so as to increase their chances of higher pay. Indeed, many employers now require a college degree as a minimum entry requirement.
However, there are also plenty of other jobs for people with technical training. There is absolutely no reason to keep piling up student loans for courses that will get unexciting somewhere down the road. You may end up dropping out, and that will be a waste of not only your money, but also valuable time to perfect a particular skill that could earn you more money.
2. Don’t ever get into debt
This should top the list as far as conventional money tips are concerned. It is generally a bad idea to take in some debt. However, this is only a half-truth because a properly structured and targeted debt can be quite useful. It is possible to leverage debt in your business and even personal life to get ahead financially.
3. Always go for the highest returns
Logically, anyone who wants to get ahead financially would want to dabble in investments that promise the highest returns. However, this is not always a brilliant strategy. You should also understand the risks involved, which may be too high including possible set-up fees.
The key is to understand your own investment goals and find the right investment that is likely to deliver the desired results.
4. Purchasing a home is always a great investment
Wait; is it not a very good idea to buy your own home? Many people imagine that if they rent instead of buying a home, they are losers. Incidentally, renting can save you some more money in the long run. If you are not looking to settle down in that particular area, you should consider renting instead of purchasing a home or apartment.
Homes come with running and maintenance expenses that may be more expensive in the long run. In fact, purchasing home usually comes with steep transaction costs and there’s no guarantee that it will appreciate in value. The bottom line is; carefully consider your options and the prevailing situation before making the decision.
5. You don’t require a professional to help you pick stocks
This one is probably driven by the do-it-yourself craze that has virtually taken over the current generation. Therefore, people will always be tempted to try and pick their own stock portfolios. After all, there’s a lot of information out there on the stock trends and prices.
However, no individual investor can match the depth and breadth of experience and knowledge of an investment professional. While not all investment pros can provide great money tips all the time, it is generally a good idea to work with one.
What other money tips have you had to take with a pinch of salt? Share with us in the comments section.