3 Financial Tips That Should Be Ignored

Let’s face it: not all money advice, however well meant, isn’t suitable or good for that matter.

This could be your family, friends or even workmates offering financial tips that might be completely wrong.

Having said that, here are 3 of the worst financial tips that you can ever get:

#1: No Need to Save Money

A number of spend-happy often give this advice to their loved ones who are being financially responsible. While you can’t take the money to the grave, one should hardly spend freely and worry about the consequences later on. Without a doubt, your spending habits will catch up with you and will, in all probability, leave a mess of debts for your loved ones to clean up.

#2: Cheaper to Buy a New Car Every Few Years Instead of Using an Old One

For the first five, the cost of owning a vehicle every year can amount to about $9,100. However, if you continue to keep the vehicle up to eight years, the cost drops to about $7800 per year. In other words, keep the old vehicle until the cost of its repair bills exceed that of buying a new car.

#3: You Don’t Have to be Able to Afford a House

While taking in a roommate might seem financially-savvy, it’s never a good idea to buy a home not unless you can afford the monthly payments yourself. You must remember that roommates will come and go, and depending on them to help you with the payments can result in defaulting on a mortgage and foreclosure.