We could all do with some financial advice at one point or another in our lives. But how can you be sure that the stuff you’re hearing isn’t a bunch of baloney? To help you make your decisions yourselves, we’ve collected some of the worst financial advice we’ve ever heard. So if someone tells you one of these points, don’t listen to them. You’ll certainly thank us later!
Use Your Student Loan For Everything
This point is mainly for all you students out there. If someone says that you should max out your student loan and use it for as much as possible, don’t take the advice. Sure, it may be great at the time, and you will be able to have a blast at university or college. However, it will come back to sting you in a few years when you are desperately trying to pay it back. If possible, try and save up for your studies before you embark on them. This will give you some extra cash to play with!
Buy; Don’t Rent
These days, the property market is saturated with investors. Just take a look at real estate investor websites to see just how lucrative it is! However, if you are a first-time buyer, you might find it difficult to get your foot on the ladder. But, thanks to all the property investors, that means that there are plenty of affordable rental properties. Unless you are planning on staying in your next place for more than five years, it makes more sense to rent in the current climate. It also takes the pressure off from trying to save for a deposit right now if you can’t afford to.
Get Your Life Insurance Before You Are Uninsurable
You might have heard that some insurance firms don’t like to give out life insurance policies to anyone who is uninsurable. How do you know if you are uninsurable? Many people think it is once you reach a certain age or suffer from a chronic illness. However, this simply isn’t the case anymore. In fact, some insurance salesmen will be so desperate to hit their commission; they will give a policy to everyone and anyone!
You Should Focus On Retiring Early
This piece of advice isn’t a particularly bad thing to tell people. However, as the years go on, it is becoming more and more achievable. These days, people have to work for longer so that they can afford to retire. So don’t try and work towards early retirement if it isn’t something within your reach. Instead of your end game being early retirement, you should focus on your investments. Think of an investment goal and work towards that.
Buy New Cars That Will Last Longer
A new car will indeed last you much longer than a used one. In fact, they often last for a decade. However, its value will depreciate in the first few years of owning it. So once you are ready to sell up after a decade or so, you might not get much money for it if you sell it second-hand.
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