There are many blog posts out there presenting tips on financial planning both on the personal and small-business level. While it is important to heed the call to become financially prudent, many of these tips offered today are not foolproof or accurate enough to guarantee financial success. Here are some of the notable financial tips that you can perhaps ignore.
Cut on your expenses and save more
I am sure we can all agree that saving money is a good thing, but some strategies on how we can achieve this objective are highly controversial. Cutting your expenses is not necessarily the most effective way to save more. There is always a limit to how much you can cut from your budget, as many of the line items may be necessary. As an alternative to spending less, one should always endeavor to increase your income as a better way of having more money to save.
To be successful, you need a college degree
Education has an unquestionable power when it comes to influencing how you think and your ability to succeed in business. However, it is not overly true that going to college will guarantee a successful career. Success in any career undertaking requires passion, understanding, and good financial sense. A good college degree only supplements your ability to steer your investment to better success, and if you have already figured out a career path that can support your lifestyle, going back to school might be a waste of money.
Your expenses could be lower upon retirement
Many people think that their expenses will be substantially reduced when they retire as they will actively spend more time at home relaxing. This is a fallacious thought, which has been proven to be wrong. Upon retirement, household expenses actually tend to increase with particular areas of expenditure, including healthcare, food, utilities, and leisure.
All debt is bad for you
Debt is a financial liability on your income. However, not all debt is necessarily bad for your financial health. Some debt can actually help you achieve better financial performance by ensuring that you achieve your goals much quicker. Proper use of debt also helps increase your credit score. What matters most is the ability to spend within your means and manage a reasonable amount of debt (with on-time payments). For example, if your goal is to purchase or construct a home, you may take a bank loan and negotiate for a reasonable loan repayment arrangement with your salary – but it is important to make sure you don’t miss payments, otherwise, that will negatively affect your credit score.
This blog/website is only made available for educational purposes. It is designed to give visitors general information and a general understanding of select financial topics. It is not intended to provide specific financial or investment advice. Conduct your own due diligence or consult a licensed financial advisor/broker before making any and all financial/investment decisions