5 Examples of Bad Money Advice Financial Experts Share (and you follow)

58 thoughts on “5 Examples of Bad Money Advice Financial Experts Share (and you follow)

  1. Everyone thinks they know something about money. The key is to see what they themself have already done. Many people talk the talk but don't walk the walk. 😉

  2. Great advice as usual. I’ve been using since 2011 a legally free software for budgeting and other financial related analysis. It has been a key factor for my financial well-being. If I see enough interest, I can record a video with real-life data showing the software and how I set it up.

  3. 7:40 why not do both? I do the match on the 401k and put $115 a week in the Roth to max the $6k contribution. Haven’t tried the backdoor however

  4. You make a really good point: everyone's situation is different and what works for one may not work for all. Major drawback in taking blanket advice from Dave and Suze. Always great content here, Jeff. Thank you!

  5. The school teach us (literally) to stay poor.

    Working for $3 Mio, 40 years of your life a job that you don’t like.

  6. So Jeff going thru financial peace university is a bad thing? I was about to purchase it but after watch this video I'm having second thoughts…great information but now I'm confused 🤪

  7. I agree with MOST of the bad money advice…except Dave Ramsey's credit card advice. But I do love that you're basically telling us not to be MISERS. Because if we are pinching every penny, are we really living? There's a fine line so I do appreciate this video nonetheless.

  8. Biggest ones I hear as a college student are don’t use credit cards and buy a house as soon as I am out of college. Luckily I don’t crack under pressure cause I plan to rent at least the first few years out of school

  9. 0:00 no… No I have not.. Does this happen often to you? I'm wondering what brand refrigerator you own, as I question its value as a company and its products longevity.

    Oh, wait, it's just you being oblivious to the contents of your fridge. Ok, carry on.

  10. 10:00 on this note, being self employed and having to pay estimated taxes – I've switched to holding my funds in Marcus (fancy that) in a dedicated tax account and paying the estimation ONCE. That means that everything I estimate that I need to pay the fed/state sits in the bank collecting that 1.7%, until I lump sum it on a Q4 payment. There's nothing that says you need to pay them little by little, just that they expect estimated taxes to be paid before X date.

    Rehash your math against what you pay in taxes a year.

    That said, this does not work for people who have taxes withheld from their paychecks. Just us sorry lot who have to ensure we pay it ourselves. Just my two cents.

  11. Just think majority of people are not responsible with credit card debt and carry over a limit month after the month, so pretty much 150k of your viewers have some kind of credit card debt that they don't pay off fully every month, so if majority of people are not responsible to have a credit card than why influencers like you and many others keep pushing that having credit cards is ok if majority of us are not responsible to have one.

  12. I agree with all of it, except #3… I think getting the match could be great, even if it’s tax deferred. Luckily, I have a Roth 401k with Brokerage link so I have a ton of investment options. -Akeiva

  13. Okay, so I don't personally like retirement accounts, including the Roth–but I have a reason for that. I think a Roth is great IF you're not in extreme debt and IF you don't need to leverage the money that you put into that account. Currently I'm using a standard personal investment account that has a margin loan against it, and I'm using that to work my way out of debt much faster than I could have before. And just because, I like Dave's snowball method…I have no use for any of his other advice, and in some cases, I think it's horrible advice. The other thing I don't really agree with is buying vs renting, although I do understand your reason behind that argument. The problem my daughter ran into is that she was paying more in rent than a home would cost…and she was living in a slumlord apartment (she should have reported them), the conditions were horrible and she became increasingly depressed. After she purchased her house, she's been much better mentally and she's saving money even with the added utilities and taxes, plus she has the advantage of claiming the interest rate on the loan and the depreciation value of the house on her taxes. Now, is she real mobile? No, but if she wanted to move, she could always just rent the house out and then have a relatively passive income in addition to the tax deductions. So, those are the two things I disagree on, but it also depends on a person's situation. Anyhow, great vid!

  14. Jeff, you are trying way to hard with all the bad jokes and cameos. Stick to the facts and cut out the BS added jokes. Almost to the point of making your videos unwatchable. But love the content other than that.

  15. The biggest one for me was not to worry about credit scores. If we had started working on our credit score a year earlier we could've gotten us a much better credit score and would've saved us thousands of dollars!!

  16. For me, considering where I live, buying a house would be a HUGE mistake. The property tax average is so high that one would have to be making almost 70K a year to simply pay the taxes – let alone the mortgage.

  17. I’ve never heard anyone, until now, say don’t get a tax return. That’s ridiculous. Also I’ve been told about the whole no credit cards advice. Dude, credit cards are awesome! If, you use them wisely, which I do.

  18. Hey champ and any gurus I have asked many times in many places and don’t think I have received a legit response yet…. so being new I had no clue what to do when I started my 457 6 years ago. I now have 6 years in a 457 in the premanged 2050 fund. It’s a mix of pre and roth (100% roth for the last year +) and my question is…. I want to go more aggressive most likely to get out of the target date fund 2050 (do I let it ride till retirement or ) when is the ideal time to transfer it to something else? I don’t have many choices with my policy but I could easisily go equity small and mid caps (I think small or mid has high ratio). But is there a best time to transfer a position wouldn’t my time vested in the target 2050 fund of 6 years put me at some yield on cost ratio of positive ness compared to say swapping it all to the sp500 fund at the peak aka worst time to throw it all into it?! Idk just rambling but anyone have some insight into this topic thanks!

  19. My picks are investment type insurances and annuity 401k.
    Thank you Jeff for different perspective!
    I still love and follow David Ramsey and keeping the good habit.

  20. Thank you for the information. I feel all five examples are spot-on but #5 hits home for me. Once again, just last week, I had to defend myself for renting. Yes, I’m older but renting works well for me, for now. Do you have any videos discussing; renting vs owning?

  21. 1-4 is subjective and is beneficial for some people you can't just say it's bad advice. As an advisor you need to know your clients and for some this kind of options are what they need before they can get to the the point of the alternative options that you mentioned.

  22. I'm a bit mixed on the credit card part. I did use a CC for a course to help advance my career, not necessarily for my current job but for future jobs and it was a class I really wanted to take (no regrets, btw) and I couldn't pay cash for it so I paid with a CC and I did get it paid off in about 2-3 months. I feel I learned from being deep in Credit Card debt that I don't want to stay in it too long so I pay it off as soon as I can.

    I think the big problem is relying on Credit Cards like it's your own money and paying only the minimum, that bit me in the ass when I was younger and I don't want to be bitten by that snake again.

  23. Great point about having income streams for retirement! A house you live in usually doesn’t bring in money unless you AirBnB a room or two.

  24. Use your credit cards! Finally started seeing and understanding how using the points is like making your money work for you. Gas, Netflix, etc. You’re already paying, why not collect some points 🤷🏽‍♂️…. just make sure you pay before the interest hits😉 #TravelEnthusiast here!

  25. Caviot is the spending money for convienences is when you can afford to do that. It should be a small financial decision and shouldn't break the bank.

  26. easy loaded 7000USD into my account, I texted him on 612 361-4523 he asked for few details and after it all I got the money

  27. I'll go along with four of the five points made here. But I have to disagree with the point about a 401(k) match. The match provides you with an immediate 50% or 100% return on your money, and then your earnings continue to grow in a tax-sheltered vehicle. This does not preclude further investment in a Roth IRA or other product. The 4% or 6% pre-tax deduction from your paycheck should not affect your standard of living. Step 1: Make sure you have health insurance. Step 2: Pay off your credit card debt and continue to pay off the balance every month. Pay off your student loans. Step 3: Contribute just enough to your 401(k) plan to obtain the company match. Step 4: Contribute the maximum annual amount to an IRA or Roth IRA. Step 5: Invest further in your 401(k) plan or in a taxable account; with a goal of saving a total of 10% of your annual salary each year towards retirement. Step 6: Get up every morning and go to work until you reach retirement age.

  28. I agree, “owning” a home is not for everyone and renting is not bad. Home ownership comes with a lot of extras expenses, I am seriously considering selling my home and renting again.

  29. So use credit cards to get 1 percent back and take awesome vacation after you borrowed tens of thousands of dollars but don't reduce your withholdings and invest because interest rates on a savings account are low… Ok……

  30. Getting into student loan was the largest financial lie that I dealt with. The best thing for anyone to do is to evaluate for themselves what works best for them, which is what makes it so hard to give large scale financial advice.

  31. Thank you for the tax advice I thought like Susie before. I didn't realize how little or really is. Even if I invested in a general index fund with a rate of about 6% on the $2000 it's still only roughly $100. Let's not forget that we don't get the $2000 at the beginning of the year as well..only gets trickled in over the span of the year. I also turned down my 401k at work it was tough turning down free money but after your video I now know I made the right choice. Thank you very much for this video!

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