7 Stupid Financial Tips From Personal Finance Blogs

Stupid Financial Tips

I read a number of personal finance blogs on a frequent basis. Some of them offer a lot of sound advice. Others not so much.

The following are 7 stupid tips that some personal finance blogs offer as advice.

1. Ideas that are too frugal

frugal

Make a plan to do all of your monthly grocery shop on one trip, only drink tap water, make toilet paper yourself.

There is all kinds of stupid advice that tell you how to save a few cents here and there and lead a miserable life instead of enjoying yourself and focusing on those things that are the most important.

Being frugal is something I am all for as long as there are some reasonable limits. If your old phone is working just fine, you probably don’t need a new one. It probably isn’t necessary to have the most expensive wine since the taste isn’t that much different compared to $10 bottles. Of course if you would like to purchase a $50 bottle to enjoy on your birthday that isn’t such a bad thing. Don’t allow frugality to make you miserable. Trying to focus on saving every dollar is a surefire way of wasting your time on things that are unimportant.

2. It is always smart to invest in gold (or whatever).

invest in gold

Anyone who tells you that a certain type of investment is “green” at all times is stupid. There isn’t such a thing as something being a good investment at all times. It might be a good idea to buy gold today, but tomorrow you might be better off selling it. Everything has its time for being hot. The key is knowing when to buy something and when you should sell it. You can make money out of rocks if you have the right timing. If you get it wrong, investing in diamonds could lose you a lot of money.

3. Buy on credit

There are some blogger that are in love with the trend of “living in the now.” You can just buy everything on credit now and pay later. However, living on credit is what keeps you in the rat race. Just don’t do it. Avoid it at all costs. Unless it happens to be something life-saving, don’t buy something if you can’t afford it.

It is a completely different matter entirely to get a loan for investing in your business.

4. Live today instead of tomorrow

Similar to the previous “tip,” there are some bloggers (who tend to have affiliate links for pay day loan companies) would like you to believe that everything should be purchased now rather than you are able to actually afford it. So you won’t be living the good life if you don’t purchase the latest and greatest game console.

This is complete nonsense pure and simple. A majority of things are not important. Don’t buy things until you can actually afford them. It is often a great ideal to delay your purchases until you are able to save up the money since better and new things will come out and you can pay the same money for them. When it comes to gadgets this is especially true.

5. Early retirement should be your goal.

Early retirement

Why is early retirement such a big deal. You want to sit around all day long and watch TV? Your real goal should be avoiding the rat race instead of not working at all. Instead of wanting to retire and do absolutely noting – aim on working when you want and on what you like.

Aiming on an early retirement and making calculations with a basic low income really is complete nonsense. You don’t ever know what might come up. You don’t know whether you will be healthy or not. You could discover a new passion, a new need, a new love that requires you to have some money. Try to figure your entire life out and then plan down to the very last cent? No thank you!

6. Real estate is a type of low risk investment.

No, it never was, isn’t now, and never will be in the future. Real estate is very expensive. It requires maintenance. It has very low liquidity. The prices can also go down.

7. Day trading is a high risk investment

No, actually day trading isn’t an investment at all. It is a form of gambling with some semi-scientific prediction methods. Find something better that can you do with your money and time.