Outdated Financial Advice That Is Just Bad

September 23, 2019

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When it comes to your finances, there's a lot of old advice that isn't necessary good anymore. Even though many of us were taught as kids that it’s not polite to talk about money, the world is overflowing with people who want to tell you exactly what you should do with yours and what they say, many times, is just flat out wrong. For instance, Millennials get a lot of flak over buying expensive coffee. Sure, $5 here and there can drain your bank account quicker than you might realize, but it isn't by far causing you to lose millions of dollars if invested in savings or in the stock market. Consider if you were to take $5 a day and invest it for 30 years, you wouldn’t have anywhere near a million dollars. You’d have about $200,000, which may be enough motivation to cut back on extra purchases a bit. But cutting coffee, or soft drinks, or takeout lunches, or happy hour out completely won’t suddenly transform your finances overnight. Although people with higher degrees of education make more money over a lifetime, strongly consider the return on your education investment.  While a bachelor's degree is a necessity in many career fields, a graduate degree doesn't always match the financial level you might expect an advanced degree to offer. If you begin your higher education knowing that you may need a higher degree to succeed in your career (say, to be a doctor, attorney), then the value of investing in a graduate degree is clear. If you can’t clearly lay out how an advanced degree will accelerate your career growth (with numbers, it’s time to rethink the whole idea. While owning a house is a wise investment, especially as property prices continue to increase, it isn't perfect for everyone. For many, homeownership just doesn’t make sense. High debt, constant traveling and unstable relationships are all reasons to delay home purchasing.

SOURCE: Two Cents

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