Sometimes it’s easier to avoid the bad than to follow the good.
When it comes to financial advice, there are many ways to succeed. Many people have achieved this in their 9-5 jobs, starting a business, or investing.
The thing is, there’s no one path to achieve it.
For this reason, telling people what to do doesn’t always work. People don’t want to know how you can save 80% of your salary or how good you are with a $10,000 credit card because we’re not leaving the same reality as you, and probably some of the advice you give are not what they need right now.
However, “What you should not dosometimes works better because people can be successful just by not doing things they know won’t work and focusing on what matters.
So here is a list of the 15 worst financial and business tips I’ve received and why they’re not as good as they seem. Knowing them will help you make better money decisions with your own reality.
While most of the time people buy a whole bunch of shitty stuff they don’t need or go out and spend all their money as soon as they get their payments, some people just don’t make enough money to get by.
For this reason, telling someone to “Stop spending to save money” is selfish and ignores the reality in which many people live.
I consider the best financial advice I’ve received when it comes to saving more money is that instead of focusing on the money I have, I look for other sources of income. that allow me to continue living the same lifestyle while earning more money for my retirement.
Also, if someone is making $40,000 a year, telling them to stop spending to save more will only save them as much as that salary allows.
So the only two valid ways to grow your wealth faster than stopping spending your daily $5 coffee are to:
- Increase your income
- Increase your rate of return
Focusing on earning more will help you have a better solution than just stopping spending because you’re looking for ways to grow instead of just adjusting your life.
This is very common advice among “financial gurus”. They basically tell you that having an old car is the key to financial success because you can use the rest of the money to invest.
However, having an old car can be the worst thing that can happen to your financial health.
My fiancé had a 2014 jeep that he bought for $23,000 last year. Although the vehicle seemed excellent at first, he had to buy many damaged parts due to the time the vehicle had. Over the two years, he spent at least $12,000 fixing it, and there were still problems.
What he finally did was sell it and buy a non-luxury but 0 mile vehicle with a five year warranty on everything.
Having an old car can be more expensive than a new one. Don’t let the price distract you from what a car actually has to offer.
Sometimes what you like isn’t what you need. Some people like to run, but that doesn’t mean he has to run for a living.
There are a lot of business ideas that most people won’t like to do, but it can give you the money you need to grow as much as you can so you never have to worry about it. what you do on a daily basis.
For this reason, instead of doing what I love, I spent the first 8 years of my professional life working on something that I know works to make money and save as much as possible, so now I plan to focus only on the things I enjoy doing.
Most people retire early because they did what they know works instead of focusing on their “passion”, and now they can have all the hobbies they want.
The person you choose to be with when building your dreams is an important key to their success. Someone who doesn’t believe 100% in what they are doing will show it through their actions and can have a big impact on the results.
When I was growing up, I told my friends about the business ideas I had and how they could give us a lot of money. I wanted them to be part of them because we got along well and I wanted us to grow together.
However, they weren’t always 100% sure that I would be part of it, and I ended up abandoning these projects for lack of motivation.
Just because someone is your friend doesn’t mean they’ll be a good business partner. If someone isn’t 100% in the project, that business won’t grow the way you want because it’s not their idea.
It is a fact that university graduates earn more than non-graduates and have more opportunities in the market. Exceptions may apply, but never count on being an exception if you want something that works.
Universities are not useless because there are very well paid careers that would not be possible without the help of education: any branch of medicine, most engineering, and even a good career in finance.
If you had to buy a house, one for a college-educated engineer and another for someone who never studied but learned the concepts of Twitter, which would you choose?
Work experience does indeed help you to have knowledge, but it will never be as deep as someone who knows why they should put a piece of wood in a corner because they are studying about it.
Don’t let people talk you out of changing careers.
Some businesses and some investments were possible thanks to a person who took out a loan to carry out this project.
Isaac French, owner of Airbnb, created a cell project for tourists who leaves him $500,000 a year. Talking about his vision and how he came to this idea, he said he saw the potential of a land and took out a loan to realize his concept.
Some investments are more profitable for you to take out a loan than to withdraw your own money. For example, I have investments that leave me between 7 and 12% per year, while taking out a loan for a house or a car costs between 3 and 6%, so it is better for me to take out a loan than to take out a loan. use my capital.
Instead of thinking there’s good debt or bad debt, think it’s okay to take out loans that directly increase your income or decrease your expenses in the long run, but focus on paying it back as quickly as possible. .
Retiring early is my goal. I love the idea of quitting working early in my life and I’m personally working to make it a reality. However, this is not the case for everyone.
Not everyone wants the same things out of life. And retiring early requires a lot of sacrifice.
I know friends who tell me they’ll never retire because their goal is to be productive all their lives, and people who can’t see themselves waking up every morning with no responsibilities.
Plus, you can do a lot of things instead of retiring early, like using your money to travel and buy expensive things you’re passionate about (like cars or experiences), which may be more exciting for you than just stop working.
So instead of just focusing on early retirement, a better way to see your money is to figure out what your true long-term goal is and what you’re passionate about, and focus your energy on achieving it.
The market plays when you don’t know what you are doing. People spend years of study and analysis to overcome this mentality. When you know what you are doing, you stop using luck to achieve something.
There are many ways to secure an investment in the market, one of them with index funds or by analyzing a company and its future before investing in it.
Most financial gurus will tell you to stop buying small, recurring things every day to get rich, like a cup of coffee or a subscription to watch your favorite show.
However, this advice is ridiculous because not only do you stop doing things that make you happy, but it has no impact on your long-term wealth.
What you need to make sure is to have a very clear budget and an investment plan with your savings, so you can spend your percentage on what you want without feeling guilty.
You can spend your money and still be rich.
I have a full time job that pays me more than most companies around me. My sub-decade retirement plan will come while I’m still working on my 8 to 5, and I have side hustles purely to support my hobbies more than to make enough to retire.
Financial freedom is more than having your own business and your own schedule; you can achieve this in many ways, not just with one company. So, if you are not an entrepreneur, you can find other ways to build wealth without any problem.