Conventional Financial Advice I Don’t Follow
I don’t like being told what to do.
Never have. Never Will. Except during nasty times. OBVIOUSLY.
When I started working on my finances, I encountered a shit ton of people saying, “This is what you need to do and if you do it any other way, you’re wrong and that’s why you suck at money.” Okay, maybe not exactly that way. It’s always a little more passive aggressive in it’s presentation.
We hear all the time that personal finance is personal. Yet, some people don’t practice what they preach and still perpetuate ideals that don’t fit in with a lot of financial situations. Each of us is living a real life that doesn’t always fit the standard for many reasons. We need financial resources from all parts of the spectrum.
I want to share some conventional financial advice that I don’t follow because I don’t think it’s realistic or helpful for people in my same situation. If you do follow some of these, that’s cool. You do you. Some of us need other options.
You can’t save, pay down debt and invest at the same time.
Bullshit you can’t. There is so much conflicting advice about this. That there’s a certain order or you have to do one first then the others. Nah. That’s not true.
I do all three. Comfortably I might add. I choose to do this because I think all three are equally important and each one affects the others. If you choose to focus on just saving because you want to have a nice cushiony emergency fund, get at it. That’s a great choice. If you want to pay down debt first because it eats away at a large chunk of your monthly income, do that. Paying off debt will eventually free that monthly payment up to be used for something else. If you want to save up, skip debt for a minute and beef up your Roth IRA instead, awesome. The sooner you start investing the better because compound interest is *chefs kiss*
Funding these doesn’t have to be grand deposits or payments. I only invest $75 total a month to my investment accounts. It gets me in the game and allows me to start building my retirement but it’s an amount that doesn’t take away from my savings or debt payments either.
However you choose to do your big three is correct because it’s for your reasons and budget.
Avoid using credit cards.
I think y’all know which asshat marketed this one. If you have a spending problem, then yea, you should probably avoid using credit cards until you can manage your spending tendencies. However, credit cards are an excellent way to build up your credit score if used correctly. Most offer cash back too, which means the things you buy make you money. You can also earn points that allow you to pay for things like rental cars, travel etc. Basically, credit cards offer you a shit ton of perks. The main caveat is that they are a positive addition IF USED RESPONSIBLY.
Never loan people money.
I recently posted on my Instagram why lending people money is more than okay. Check it out here.
Never finance a car.
Well, too bad bitch because I did. Being able to save thousands of dollars to avoid financing a vehicle is a privilege. Period. Shaming people who have to finance because they need transportation is ugly. Finance that car babies! It’s fine! Having safe, reliable transportation is a massive necessity for a lot of people. It’s so stressful having to deal with constant repairs or the possibility that something goes wrong and causes an accident. Just finance the damn car! There are good things that can come of this.
It can boost your credit score as long as you make on-time payments.
It builds up your credit history.
It reduces the likelihood of expensive repairs.
It gives you peace of mind that things are in working order.
It can lower your car insurance due to new safety features.
It can save you on gas.
Before you just go and take a loan out, make sure you’ve done your research first. Understand what your budget is for the monthly payment. Always shop around for the best interest rate you qualify for. You do not have to take the first offer that’s presented. If the initial loan isn’t the best, remember you can always refinance after at least 6 months of on-time payments to help reduce the interest rate and save you money.
You need a side hustle
There are pros and con’s to this one. Having a diverse way to make money is like a safety net. If your main job reduces your hours, having another thing that brings in money means you have a way to cover that shortfall. It’s also a great option if you want to pay down debt faster or save for a vacation or to cover time off. A side hustle is not a requirement though. You already work hard. It’s not required that you give up additional time and energy just to make extra money every week. Not everything you spend your time on needs to be equated to making money. If you decide to side-hustle, do it because it works with your plans. Not because you feel the need to be productive and making money all the time.
Conventional money advice is just that, conventional. Not all of us can plop ourselves into these common rationales because our situations are not common. That doesn’t mean however you set up your finances won’t work out in your favor. I’ve broken so many “rules” and yet I’ve still made incredible progress financially. Your situation will require a personal solution.
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