Whenever you think about the right or easier way to manage your finances—how to save, where to put your savings, where to invest or what kind of insurance plan to go for, get financial advice from credible personalities and not just from people you know. That’s only good, sensible common sense.
However, sometimes you might have a tendency to pattern your financial plans or goals after those of other people’s—people you believe are successful or financially stable. And more often than not, these ways don’t really suit you.
It is good to research and watch TV programs that have different financial advisors tackle a variety of money issues, to read up on problems or simply consult a financial expert before you make a move. But access to these things aren’t possible all the time.
And if you can’t wait, if you have money issues you need to resolve right away and you can’t make up your mind, it’s best to—at the very least—be on the lookout for the kind of advice you need to stay away from.
Here are a couple of the worst financial advice you need to steer clear from:
You’re not yet ready to investing in anything
Don’t listen to this advice. You have the right to grow your money even if you don’t have enough funds yet. All big things start small, and you won’t get anywhere if you don’t start right away. If you’re debt-free, with a good financial standing, you can always get started. You may consider looking for a broker who doesn’t ask for extra fees and who aren’t only intent on making commissions.
Relax, you’re young. Don’t rush into things.
Most young professionals, especially those who start in their early 20’s, tend to ignore the idea of saving. But since you’re young and still have years of toil and work in your future, this is also the best time to start saving. Save while you still have the energy to do so. Take advantage of your ability to take on side jobs for some extra cash.
One of the things young people ignore is retirement. The concept of retirement for many is that it happens last, that it could wait. But time flies so fast you don’t notice you’re losing it and tomorrow, you wake up, you’re thirty and haven’t a single cent saved to your name. This is why it’s important you start saving for the future even at a young age.
Don’t worry, there’s no risk
Of course there is. If you’re investing in anything or even starting on your business, there will always be risks. If you talk to a licensed financial advisor, he would probably tell you all the possible risks—along with steps to overcome these risks. Even if your investment is doing good, economic downturns and market changes have a way of reversing that situation.
Your new house is the best investment
Investing in a new home is a good idea but the only possible issue is volatility. You have to find the perfect time to invest. It can be an investment but you have to always measure for the variation of the property’s value over time. You also have to consider other factors such as closing costs and property taxes even if you can afford to buy the property.
You may also consider applying for a home loan. Look for conventional or flexi options depending on what you can pay for. However, interest rates for home loans vary and additional charges may apply. There are banks that provide an option to lock interest rates for a time. Look for those. Also keep an eye on the annual re-pricing that makes interest rates increase.
You can expect a big return on your investment
This is a big cliché for all advisors and agents in the world if they are convincing someone to invest in anything. A possible return in any investment is always unpredictable. If you hear this line in the opening spiels of a financial advisor, ditch that advisor, and get someone else. Listen to advice that’s more realistic and therefore, more sensible.
So now you have a fairly solid idea on the kind of advice you should clearly stay away from. At the very least, it’ll give you enough of the basics so you won’t be gullible to a piece of bad advice.
- A Few of the World’s Worst Financial Advice
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