3 Totally Common Financial Tips You Should Probably Ignore

IMG_3167Whether you get your financial tips by asking friends and family or checking out library books, attending seminars or searching online (at sites other than DailyFinance), impractical pieces of advice abound.

Too many personal finance experts tend to populate their cable appearances, books, columns and blogs with the same simple tidbits. But some of that common advice is also … useless. For each of these three cliched tips, let’s look at some better alternatives.

1. In Debt? Cut Up Your Credit Cards

Certain financial gurus advise people in debt to cut up all their plastic and consider using credit cards the eighth deadly sin. Here’s some advice: don’t.

Find out why and other pieces of advice to ignore on DailyFinance.

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11 comments on “3 Totally Common Financial Tips You Should Probably Ignore
  1. Awesome post! Bad financial information doesn’t come only from scammers, even our loved ones can unwittingly steer us wrong. That’s why knowing what not to do with your money is often your biggest asset.
    Alicia @ Monster Piggy Bank recently posted…Enjoying the new Carseldine Markets and Buying Local ProduceMy Profile

    • Broke Millennial says:

      Dead on. Parents, grandparents, siblings can really end up giving bad advice. Sometimes, it’s great advice! But always do some research yourself.

  2. Alexis says:

    I don’t think cutting up credit cards is a good idea either. I think it’s better to simply freeze them! Lol, just kidding. I think cutting up the credit cards doesn’t let the owner learn from their mistakes and how to control their spending.

    • Broke Millennial says:

      Freezing can be a great tactic (well, not literally of course!). Or cycle the cards you use. I don’t keep all of my cards in my wallet, some stay locked away. It’s also a safety precaution in case my wallet ever gets stolen.

  3. Yea I normally try to pay my CC balance every month and keep at least 10-20% buffer in my checking account. Also I have a 3 – 6 mo emergency fund if needed.
    J @ the expat investor recently posted…July 2014 Recent PurchaseMy Profile

    • Broke Millennial says:

      A buffer is ideal if you can have one, but some people can’t due to their circumstances. An emergency fund is also important! I try to keep 3 – 6 months as well, but that could be gone in a flash if something drastic ever happens. It makes me understand why low-interest rate credit cards or a preemptive line of credit from a credit union can make sense.

  4. Love my parents…but they give some of the worst financial advice EVER! Some old tips just needs to die.
    Holly@ClubThrifty recently posted…Tips for FreelancersMy Profile

  5. Great post, Erin! I keep an extremely close eye on my checking account and I am very careful with credit cards, so I don’t see the need to follow either of those pieces of advice. Plus, I like the credit card rewards. I agree that small expenses add up, but indulging here and there is important to avoid feeling majorly deprived and totally splurging.
    Addison @ Cashville Skyline recently posted…Why I’ve Quit My ‘Dream Job’My Profile

  6. I agree with not cutting off your credit cards! I can always rely on balance transfer for emergencies. Sometimes you just have to do some research on your end as well. Better safe than sorry.
    Thea @ Monster Piggy Bank recently posted…6 Tips for reading through contracts and the fine printMy Profile

  7. John says:

    Thanks for sharing such a great topic and also very helpful for us.Anything too much is not so good, like Too many personal finance experts.
    John recently posted…What are bacteria?My Profile

  8. Jpost says:

    People who are broke and in debt tend to take advice from others they know who are just as broke as they are. They also usually make the pursuit of constant entertainment their first priority in life. Acquiring financial knowledge isn’t a big priority for someone living from one pay check to the next.

    Making a decision to cut expenses and save money can be very scary, at first. It takes courage to break out of the same spending and debting pattern that everyone you know is following. But, you won’t feel that uncomfortable forever. After a while when you see your savings balance growing

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