Home Debt 26 People Share The Worst Money Advice They Were Ever Given
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26 People Share The Worst Money Advice They Were Ever Given

Darren RydingMarch 16, 2022
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10. Take Out A Loan To Pay Debt

Debt is a terrible thing but the worst way to deal with it is to take out a loan. Yet that’s exactly the advice that one Reddit user received. Filthyburrows said: “Pay off your debt by taking out a loan I understand the logic of debt consolidation. But seriously why are you still borrowing money if you don’t know how to pay it back.”

This creates an inescapable and neverending cycle. The interest mounts up higher and higher before the entire family melts down. Many people borrow from dubious moneylenders and then have bailiffs knocking on their door. It’s a terrible hole to fall into.

Be The Budget

9. Keep Saving

This Redditor has an interesting perspective. They said that the worst money advice they received was simply to keep saving. DrinkWaterOkur wrote: “While yes saving is good but just saving is terrible. People will literally “save” until their late 60s just to realize they haven’t saved nearly as much as they thought.”

It’s a good point because smart investments are a better way to ensure a long-term return. They don’t have to be risky but the benefits will be greater. Hoarding money isn’t as productive as putting it into something that will make more money.

Literary Hub

8. Investing Is Like Gambling

Many people of the older generation believe that investing is extremely risky. They hear about cryptocurrencies and think that the devil is coming to take their money. In short, they believe it’s the same as gambling. One Redditor’s mother gave the following advice.

“Work my ass off, don’t invest and hoard- mom. No, I don’t think I will,” Valakaydin wrote. That’s probably a smart decision because we live in a different time. It’s important to maintain different revenue streams because this isn’t an easy world.

Managing Finances

7. A Mother’s Love

Some Redditors said that their mothers were terrible when it came to money. They revealed that their moms promised to hold money for them as children. However, they never received it when they were older. It’s crazy but never trust anybody with money.

MemedMe20 said: “My grandfather was pretty wealthy and gave us $50-$100 each birthday. My mom “kept it safe for us”. I’m pretty sure she used it at least once to pay the light bill when the power got shut off so at least it went to good use? Never saw a dime of it myself.”

Brookings

6. Monthly Payments Don’t Matter

Monthly payments add up over time. That’s why it makes sense to buy something outright in the beginning. Unfortunately, one Redditor’s aunt has a different perspective. She was oblivious to the long-term cost of this payment system.

Rleash said: “My aunt took me to a car dealership when I was looking to buy my first car. I was looking at the clunkers I could afford, but she said I should be looking at the new cars. She said, “the total price doesn’t matter because you make monthly payments.”

Toronto Star

5. Overtime Tax

“I’ve had people tell me that overtime hours were taxed extra… no matter how much I tried to explain about tax brackets, they just didn’t believe me,” dr-moon88 wrote. It’s amazing the number of people who have no idea how the tax system works.

This is sad because they’re potentially missing out on a lot of money in the process. Schools and parents should ensure that everybody knows what’s right. It’s also why many workers reject pay raises because they mistakenly think they’ll make less.

Go From Broke

4. Spend It Before It’s Stolen

This is probably the most paranoid advice on this list. Somebody told ChilledGopher to spend their money quickly, ‘before it gets stolen.’ We’re unsure what their basis for this theory was. However, it’s about as logical as putting on shoes before pants.

Another person claimed that their grandfather told them “to spend their money before it’s gone.” This is one of the most philosophical statements we’ve ever read. It’s also some of the worst money advice ever. People shouldn’t listen to their family members.

Nerd Wallet

3. Max Your Credit Card

Maxing credit cards is never a sensible decision. But somebody failed to tell this Redditor’s father. He believed that it was the sensible course of action because he doubted the ramifications. Of course, he could receive a jail sentence but that’s not a big deal, right?

LuluTopSionMid said: “My father would tell me to max my credit card on a new car and if they asked for payments just say F*** em, what are they going to do? My father is several levels of debt hell deep that he’s trying to get out of now, but he’s at least trying.”

Live Mint

2. Invest In Equity Schemes and Debt Funds

One of the worst things a person can do is to invest in something that they don’t fully understand. The likes of debt funds and options trading are all dangerous if the investor doesn’t know what they’re doing. Sadly, it’s easy to fall into a trap.

BellerophonBhattu said: “I regret getting pressured prematurely into buying one, didn’t have the opportunity to research adequately. It’s a huge money drain.” This is an unfortunate reality for many people because they were too afraid to say no.

Vox

1. Trading Is Evil

Over the years stocks and trading are popular forms of investment. In contemporary society, crypto is also growing. It remains a fact that people who don’t understand these systems doubt them and condemn them. This can also cost their families opportunities.

EasyPete58 wrote: “When I got interested in stocks and also crypto (I was 16 at the time) my parents just told me that “trading was for rich and criminal people only” and that if I wanted to make money I have to go to university and study since everything banking-related was “evil.”

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