I guarantee you can recall one instance of terrible financial advice you received in the past. Whether it was an innocent statement from a friend or a long talk with a well-meaning relative over a family meal.
Unfortunately, it’s these well-meaning pieces of financial advice that can actually inhibit our financial progress.
It’s time for you to take a step back and choose the financial advice nuggets you want to keep and ditch those that make you feel restricted, bad about yourself, or guilty in any way....
I guarantee you can recall one instance of terrible financial advice you received in the past. Whether it was an innocent statement from a friend or a long talk with a well-meaning relative over a family meal.
Unfortunately, it’s these well-meaning pieces of financial advice that can actually inhibit our financial progress.
It’s time for you to take a step back and choose the financial advice nuggets you want to keep and ditch those that make you feel restricted, bad about yourself, or guilty in any way.
It’s very “normal” to struggle with finances - financial conversations, knowing what to do first, and even knowing HOW to do some things with our money just simply wasn’t shared with us when we were young.
A common misconception is that as we get older and our income rises, we’ll be able to pay off any debt we accumulated in our early adulthood. The unfortunate truth is that those accustomed to living beyond their means will always live beyond their means, whether they make $50,000 or $500,000 per year.
Not only were we not taught how to manage money well in school, but the ever-circling bad financial advice is also working against us too! It might stem from a great marketing ploy, persuasive economic report, or a well-meaning relative simply because it worked for them, but it might not work for you and your situation.
In this episode, I'm going to share some of the poor financial advice I received in the past and how I came to this road of self-discovery to find what works best for my family and me. If you've been given terrible money advice, this episode will not only help you become aware of it, but it will also help you get the courage to dismiss it totally.
Establish Credit As Early As Possible - As a teenager, I was told that I should get a credit card as soon as possible in order to establish credit. Unfortunately, since I wasn’t taught to manage the credit or understand the statement, that led me toward a game of financial roulette each month.
Your Credit Score is Important- The great myth here is you have to “work” on your score. Of course, when you make a big purchase, such as buying a home, you need a good standing score, but you don't need a perfect score to survive. With solid financial habits in tow, your credit score will naturally improve.
Renting is a Waste, Homership is Key- It was engrained in my brain that owning a home is better than renting. Without a more in-depth explanation or financial strategy, this advice has first-time homebuyers overcommitting themselves, putting an undue burden on their career and potential income.
If you can afford the payment, you can afford the thing - Our desires and budgets are focused month-to-month, and this short-term vision leads to years of creditor pressure and our incomes being siphoned away by payments.
Just Save $1,000- For many people, this is a key factor in moving toward financial abundance and away from credit reliance. Establishing a $1K emergency fund isn’t about just saving $1K. Ideally, you start saving, it becomes a habit, and then you continue to make progress.
Cut Up Your Credit Cards to Get Out of Debt - Credit is a tool, and there are several advantages to having credit cards. Close any you aren't using or that you don’t like. Credit only becomes a problem when you’re consistently spending beyond your means.
In this episode, listen for:
- Should you use a credit card if you don’t have the cash?
- Breaking the cycle of credit dependency
- What is your priority? If it’s investing, can you own a home and still remain focused on the goal?
In this episode, you’ll also hear:
[00:16:27] Using an example to help you better comprehend how you will pay off your credit card
[00:21:35] Practice positive controlled reasonable financial behavior
[00:26:23] You don't need equity unless you want to utilize it, just like you don't need credit.
If this episode hit home for you, share it with a friend. Simply copy & paste this link: https://link.chtbl.com/EG1droGz
Learn more about how you CAN create the abundant life you've always wanted at www.reachingabundance.com
Follow me at www.instagram.com/reachingabundance
This episode brought to you by famzoo.com - creating healthy spending habits for your children
