Most will give you their opinions on how you should handle your money matters. But not everything you hear will be helpful advice. Here are a few money tips that you should ignore.
Don’t ever go into debt – Sometimes taking a loan is the only way to progress in the areas of buying a new house, a car or to go on that holiday of a lifetime. In this case, it is important to take a loan that does not leave you overextended and unable to pay back your debts.
Pay off your debt before savings – What you should do is weigh your investments in comparison to the loan repayment period. Remember that most establishments earn from interest and therefore paying off your loan will cost you a penalty.
College is a must if you want to make good money – Some employers will require a college degree, but some well-paying jobs are offered to those with a technical training. The point to note is, don’t go to college if you don’t feel motivated to do the course.
Only invest in stocks that provide dividends – Most people will want their annual dividends to be paid on their stocks to consider them profitable. However, dividends are deducted from the earning of the company and therefore this could reduce the amount of each share.
Buy bonds to generate income – Bonds are a risk reducer and it is good to invest in bonds, as this will ensure your money is safe. However, remember that you will not make much money from them.