5 Outdated Money Tips That Everyone Still Believes

outdated money advice
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9 Responses

  1. Steveark says:

    Definitely agree budgeting is unnecessary for people with good money skills. But I do think debt taken out on an appreciating asset is fundamentally less risky than debt taken on a depreciating asset. College education, if it’s a carefully chosen major at a low cost college that you have the skills to master, is an appreciating asset, it’s an investment in you. An affordable house mortgage is low risk compared to a car loan and almost always appreciates at least in line with inflation. I would agree it isn’t good debt, but it’s much less bad debt.

    • Lisa says:

      I think college and house loan advice is actually incredibly dangerous as evidenced by your own descriptions of this advice.

      Your advice: college + “carefully chosen major” + “low-cost college” + “you have the skills to master” = great investment
      What most people hear: college is a great investment

      Your advice: “affordable house” ALMOST always appreciates
      What most people hear: a house is a great investment!

      And with these two investments, they’re INCREDIBLY EXPENSIVE. It’s hard to dig yourself out of these holes if you choose wrong – and there are more wrong turns than most financial “experts” are willing to admit.

  2. I think for most people that do not have high salaries or a more tenuous job an emergency fund is reality and necessity. I do agree that debt is debt. It just depends what you use it for.

    • Lisa says:

      I think emergency funds certainly help emotionally and practically when you’re beginning in your career. Once you’ve saved a few months of emergency savings though, you start to think, this money is just sitting there waiting for an emergency! I need to make my money work for me. But that realization can take years – both to save the money, and live without emergencies.

  3. Jay Rigler says:

    This makes me so happy. Moving away from overly complicated budgets has been a life (and money) saver. If it’s too complicated you can’t internalize it. Keep it simple and win!

    Five-stars, thanks for sharing.

  4. Fixed Credit says:

    Your tips are perfect! Very rational! And the “What’s the point of money if you’re more focused on saving it than getting what you want?” is something that I also believe in 🙂

  1. February 20, 2021

    […] Five outdated money tips that everyone still believes (a lawyer and her money); I still follow #4 and #5 […]

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