If you’re looking to find financial information online, be prepared to dig through a lot of BS. There are hundreds of content creators who talk about finance and money, and many of them pack their channels with valuable information. I admit I’ve learned a lot from them and I’ve been able to apply the information to my personal situation. Much of this advice is beneficial, but there are also times when I disagree.
When you consume information online, you need to remember that anyone can write anything. Of course, many people prefer to build a positive reputation, but they also need to get views. This means you’ll find some polarizing opinions or “advice” that is flat-out wrong.
I acknowledge the irony of writing an article online where I critique advice shared by content creators. Everyone has their own style, but some people post buzz-worthy information that’s too good to be true. In all actuality, this can be counterintuitive. Not only does it make it difficult to build financial strength, it can actually hurt your situation. After years of using the internet for financial knowledge, there are a few concepts and ideas that still make me cringe.
Don’t Talk About Money
Perhaps this is more traditional advice that’s regarded as proper etiquette, but there’s certainly a time to talk about money. While you can do a lot of research online, talking to others can apply this information to your personal situation. Through these conversations, you’ll become more fluent in financial topics and you will gain the ability to manage your money more effectively.
This advice is most prominent in the work environment. It’s also the area where you should work hardest to break the mold because salary discussions can help ensure equitable treatment in the office. While I never advertised my salary, I was always willing to share that information with people who have a reason to ask. I want to ensure my work is compensated appropriately, and it’s also important that incoming employees get equal pay for equal work and qualifications. Withholding this information never benefits the employee. An employer who asks you to keep your salary confidential likely has some secrets to hide.
“Pay Yourself First”
Many finance “experts” will advise people to take their paychecks and pay themselves first. When they say this, they mean you ought to contribute to your personal savings, retirement, and investments before spending any money. This is well-intended advice, but it doesn’t always serve your best interest. At times, you need to prioritize other expenses. For example, it may benefit you to buy a car this month and forgo some of the savings. While this is a big expense, the sooner you can reap the benefits, the greater its impact can be.
This advice was never meant to be taken literally, though that may get lost in translation when many people repeat the words. It’s meant to represent a shift in your mindset, and that sentiment remains. Normally, you should contribute to your future goals and focus on financial security. It’s a great idea to invest rather than spend money on new clothes, but there are times when you owe it to yourself to direct your money elsewhere.
Buy A Home
When deciding whether to buy a house or rent an apartment, there’s a lot of factors to consider. Owning a home is a definite asset, and it can feel like renting is throwing money away. Still, renting allows for much more flexibility. You can cut down on expenses by having a roommate and avoid maintenance costs associated with ownership.
While homeownership does have its benefits, it also has a huge barrier to entry. Down payments are expensive, and the buying process is a major time-suck. Plus, many people rely on a mortgage. This means houses have interest, property taxes, and (sometimes) homeowners associations. This is money you’ll spend that isn’t directly applied to the value of the house. Of course, when you do sell the home there is a good chance you’ll make a profit. This is great in the moment, but it’s a result of years of work and maintenance.
Work to Build Your Credit Score
There are various ways to measure financial worth, but many people place an emphasis on the credit score. When your score is strong, you’re definitely going to feel the benefits. You can qualify for better credit cards, get approved for loans, and navigate financial obstacles with less resistance. This score is usually the result of many good behaviors, but a lot of financial gurus try to help you improve your credit score. To do this, they’ll tell you to follow some specific steps.
If you want to maintain a good credit score, you’ll need to demonstrate that you’re financially responsible. This means you make payments on time, you’re not relying on loans to survive, and you can reliably repay debts. There’s no special app or credit card that will catapult you to a higher score. The truth is, you need time to prove your creditworthiness. You need to manage your financial commitments, and absorbing new responsibilities might make this process more difficult.
Investing in New Crypto/ Meme Stocks
If you want to invest in the stock market, there are ways to earn a profit that are fairly safe. Right now, cryptocurrency is a huge trend. BitCoin has seen its ups and downs, but it’s safer than a lot of the investments that get discussed. In 2021, it feels like the term “investment” has taken on new meaning. People are buying stocks of GameStop or AMC hoping to turn a quick profit, and DogeCoin has yo-yoed in value.
A few people have won by making some risky investments, but the odds are never in your favor. When it comes to investing, the recipe is simple. Pick secure funds and give them time to grow. Anyone who is telling you to buy new crypto right now probably has ulterior motives. That person has probably already invested and wants to generate some artificial interest. There’s usually no merit to this advice, and you certainly have nothing to gain by listening to it.
Keep Reading, But Be a Skeptic
While there’s a lot of bad advice out there, I know I will continue following my favorite creators. Truthfully, I’ve found more good advice online than bad. Even if I explore topics that don’t apply to my particular situation, it doesn’t make the advice worthless. The advice you should ignore is the advice that can hurt you in the long run.
Following financial trends can be interesting, but it’s also a gamble. Many of these topics are designed to be sensational, and they’re published to get attention. The valuable information is boring, and it won’t get as many views as newer concepts.
When consuming information, take everything with a grain of salt. A lot of things don’t apply to you, and that’s fine. Financial advice is being recommended to you. You’re not obligated to follow, or even believe, all of it.
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