The worst financial advice you’ll hear 🤑
Written by Glen James
Host of the Retire Right & money money money (formerly my millennial money) podcasts & author of The Quick-Start Guide to Investing.
I have zero doubt that someone has given you some truly terrible money advice. There’s an old wives tale for every aspect of your money. There’s also an expectation that you should copy what someone else has done, blindly, without thinking or assessing your own situation. Don’t do it! At many social gatherings you’re likely to hear some unruly “advice”. I asked our community what are the worst pieces of advice they’ve been given and shared my candid thoughts below:
Spending
Ali: Just AfterPay it.
Sammy: If it’s on sale, you’re technically saving money by buying it.
NO. Don’t AfterPay it. Just don’t. Buy-now-pay-later schemes are predatory—they seek to entrap users into financial arrangements that cripple them. And when it comes to sales, if you never planned on buying that item but you’re considering buying it simply because it’s on sale, you need to put your debit card down and walk away. If you had planned to buy that item, had saved the cash, and THEN it went on sale, go for it. Otherwise if you never intended to buy it, you shouldn’t do it now. And you especially shouldn’t use buy-now-pay-later schemes to get it. You will ‘pay later’ — with debt and regret.
Superannuation
Emma: I had a family member tell me recently that super was a scam.
Andrea: I was told not to worry about super until I was in my 30s or 40s! Worst advice ever.
Simon: Super is a crock, it’s your money and you should be able to have it in your pay packet.
Sigh. Superannuation is not a scam, plus waiting until your 30s or 40s to invest in superannuation, what?! As with all investing, the earlier you start the better. Superannuation is your money, you aren’t losing it by putting it into superannuation. Don’t stash cash in your mattress for old age! Put it to work by investing it in your super.
Investing
Shell: Investing is gambling, it’s the same as playing lotto. Just keep all your money in cash.
Sasha: ‘Don’t invest in shares, it does nothing’.
Investing is not gambling. Investing is boring, but it works. If you’ve read my new book, the quick start guide to investing, you’ll know that both Nick and I share that a good investing strategy is actually boring. And investing absolutely does something! So many people’s futures are looking brighter because they’ve invested money. So many people’s goals will be achieved because of investing—whether it’s to retire earlier, pay for children’s education in 10 years or pay for an amazing holiday in the future. Investing is smart, and if you’re doing it despite the advice that it ‘does nothing’ then good for you.
Want to understand what to do with your money leading up to retirement? Have a listen to the Retire Right podcast!
This podcast touches on:
superannuation strategies
receiving inheritances
seeking financial advice
investment bonds
determining when and how to retire
the age pension
insurances
tax strategies
and much more!
Retire Right is an Australian Retirement podcast.
