WORST Financial Advice

[@mio.giardino]

Worse piece of advice I got was sorta financial....it was someone convincing me to join a multi level marketing company (similar to Norwex, Tupperware, Pampered Chef, Mary Kay) and sell stuff at home show parties. I wasted SO much money on kits, training, marketing literature, advertising that now when I'm approached I get them to go away by saying (a lie) I'm still in debt from the last thing I did.

[@hunkydude322]

the bottom line is life throws curves at us so you just have to learn how to be wise with your money no matter if your seeking an education or want be a blue collar worker or just be self employed, you as an individual will have to learn that on your journey of life and what direction you want to go. good luck.

[@azkaland]

I've heard this one from people I know personally and even from some clients when I was working as an underwriter for a credit card company, that basically carrying a balance on your credit card is how you raise your credit score! NO that's not at all how it works. I've seen a handful of people with perfect 880-900 credit scores and NONE of them carried balances on their cards, they pay them off in full each month and pay extra on their mortgages. The cut-and-dried way to get a good score is don't make late payments, don't carry a balance on your cards, and don't go apply for a bunch of stuff. And be sure to check your credit reports to make sure there isn't anything inaccurate, or especially any unauthorized accounts which can be extremely costly to your score and even your wallet.

[@keke8880]

I've heard that too. My parent had the lowest score possible with massive debt and never paid any of it back. Now, 15 years later, they have a near perfect score with offers coming in every day 🙄

[@annas8392]

I think buying a new car, maintaining it properly and running it 15+ years is going to be similar in the long run to buying several used cars, especially if you consider time and the risk of costly repairs.

[@kakelinga]

I have purchased three brand new cars in my life and have driven them until the tires practically fell off. 20 years +. Latest one is 5 years old.

[@monicaleite5058]

I think it's fine to buy any car you want as long as you can pay cash for it.

[@empowered4993]

Buy a car that is 2 years old and still has garanti on it. Since the first 2 years it losses the most amount of value

[@robynperdieu3434]

Best thing I ever did was psy cash for a car. I drove it for sixteen years, but you have to weigh the costs of repairs. I had 245k on it and had to decide whether to keep it or not. I gave it up.

[@gregorov14]

Lots of good points. I like the part about how a credit card is used. It's certainly not evil, just can be easily abused. If you don't have the funds to pay for something on credit, then don't buy it is how I like to see it. The whole "go to college" does bug me too, even if it's true that college graduates make more in general. It is a short sighted one size fits all and puts the whole goal of life into how much money can I make vs life satisfaction.

[@janettemetzger7644]

I wanted to comment on what you said about college and student loans. There are many great professions where college isn't necessary but there are also many professions where it is. The great thing is that we have the option to choose and I believe that kids should choose what they really want to do. So if you or someone you know really wants to go into a profession where college is necessary there are so many options out there besides student loans. I'm an educator and these are things that I tell kids if they ask me: 1) Stay in state and go to a state school. There are lots of state-funded grant options that you lose when you go out of state (personal experience speaking here). Also private schools tend to be the most pricey. 2) Do your homework and look for scholarships. There are a ton available and many don't get used. 3) Consider community college for the 1st 2 years and live at home. Community college is way cheaper and a large part of college expense is room and board. 4) Speaking of community college, many have programs where high school students take classes for free and the credits count both towards their H.S. diploma and as college credit. 5) Look at on-line options. I'm currently in a really great doctoral program that is completely on-line but is very rigorous. I do it one class/semester at a time which allows me to pay as I go. I hear a lot of people write off the idea of college because of the cost but there are lots of options that don't include student loans.

[@kakelinga]

Great Advice! I work at a community college and see kids getting into a lot of debt using student loans when our tuition is reasonable and very manageable if they had a part time job or work study.

[@keke8880]

I think she gave a balanced take on the outlook for college grads from her generation and it's really accurate. Of course the need for college may change again in the future, but from 2006ish to now, undergrad college degrees (and even masters in many cases) are useless for most. Talk to millennials and early Gen Z'ers.

[@shawnkovac1042]

i agree with all you shared, with the exception of one thing (and how that relates to other things). you said a 3.875% 30-year mortgage results in an 'effective' interest rate of about 67%. but the mistake in that thinking is that this 'effective' interest rate is even any number that matters. the yearly interest rate is the only number that matters: the 6%. now it is true that banks tell us that our interest rate might be 3% yearly but our actual or effective or real interest rate is really 6% yearly. yes banks lie to us (drastically & fraudulently). but that 6% yearly is the one interest rate that really matters. compounding it for 30 years and saying that it is 67% of the original would be important _if our measurement units (dollars) did not lose _*_more_*_ of their value_ in the same time. but since dollars don't buy as much from one year to the next, nor one decade to the next, this is why that 60% interest is a number that just does not really apply to us because our currency system has truly been turned up-side-down because what we buy today will cost us about twice as many dollars right around 10 years from now. the real deflation of the dollar (inflation of prices) is about one half (50%) per 10 years. this means that 60% more in 30 years is a GREAT investment! the part that makes so much turned around backwards is because a dollar today is worth twice as much as a dollar ten years from now. this means that saving dollars is throwing our wealth down the drain. but saving true assets or real money (which is not dollars) is smart. Hidden Secrets of Money is a super (free) teaching serious here on KZbin that explains the core concepts in the first 30 minute episode. FGG, you are very practical and smart. keep up the great life! :)

[@MyPinkHelloKitty]

Totally agreed with you about Dave Ramsey endorsing the mortgage company on his show. It is really fishy, but I guess lots of people still follow him around, and he makes a lot of money off of those people. I used to listen to his show a lot, and then it got really annoying when he brought his daughter in and selling her book, talk show, and even her money managing wallet! (Who needs another wallet!) That's where I stopped. I think when the main target audience are struggling with money, he and his daughter should not try to sell more stuff to those people.

[@Margar02]

My hubby and I have the Amex card that gets 5 or 6 percent cash back on groceries, 3 percent on gas, and 1 percent on everything else. We use it for everything and pay it off immediately. It's free money and our credit score has soared :) when we first got it we balanced transferred a huge chunk from another card and have used the zero interest introductory period to pay it down. We are on track to be out of debt in 2 years.

[@CentsibleLivingWithMoneyMom]

I love how you have such a balanced approach with life.

[@heavymechanic2]

I read the book *Dumbing us Down* that explains the government intentionally teaches us to be consumers and not know how to do for yourself. This reflects upon credit, college, student loans, buying a new car with a warranty, and other ways of living beyond your means.. This is good content and I am putting some home repair on a credit card in small amounts to be repaid in just a few months vs doing a lot of work at once and becoming a debt slave to the bank.

[@keke8880]

Boy was I brainwashed too! Now I have college debt for nothing. I didnt want to go but my family made it seem I wouldn't be able to feed myself otherwise. I wish I'd listened to my gut. I graduated in 2008 into the recession. My older sibling graduated in 1998 and in their case, the degree did help them "get their foot in the door" and get enough experience to be ok when the recession hit 10 yeqrs later. But in my case it was a waste of time and money and a dead end. Plus I didn't want to do it and didn't pursue my dream because of it. I was told anything other than college->9-5 job in an office was unrealistic and almost shameful. I'm about your age.

[@robynperdieu3434]

Me too. Graduated in August 2000, right after Clinton's NAFTA. The jobs went away and then people refinanced their homes, with swindlers like Ameriquest, run by Zionist Roland Arnall, owner. Both of these actions destroyed the middle class.

[@robynperdieu3434]

I was told over and over that the jobs for college grads were starting at $25,000. Then Clinton signed NAFTA into law and the jobs went away overseas and the ones we had were lower paying. I graduated in August 2000. I don't regret my degree in Communications, however, as it taught me critical thinking, organization, time management, and perseverance.

[@mio.giardino]

'God will provide.' Yes, but, even the birds in the sky need to fly around to find their food. We paid off our mortgage ASAP and paid in extra towards the principal as much as we could. People were amazed that we didn't have a mortgage payment before our second child. It was the BEST thing ever because as pay raises came we could enjoy them in moderation.

[@clarissahallowell5436]

I do agree with you. You do need to work and not just think God will drop things in your lap. I grew up with this mentality and it didn’t work for people I have seen waiting on God. I believe God gave us brains we should use them and work. I am with you on theDave Ramsey thing too. I just found your channel and I love it. ❤️💰

[@kittenlover6580]

Can you please start doing more planting things... like, plant sale, planting seeds or planting something!

[@harrytinker2328]

I can think of two reasons one might let their credit score die: -If one is unable to control their use of credit. It would make it harder to go into debt. -If one wanted to not "play the game" of the banking "industry". (protest) In both of these cases, unless you are able to save enough yourself for all of your needs you may make things hard for youself or limit your options.

[@TheKrystolMethod]

I’m currently using Dave Ramsey method to get out of debt. He talks about not having credit cards and saving to buy a house. But, I cut up my credit card and will keep it open to raise my credit score. When I become more reliable about it I’ll order a new one. Great video.

[@mmmVIEWER1]

the Suzie Orman of financial frugality.

[@johnsmith-zx5er]

such great down to earth advice. thanks as always

[@matthewlangley3524]

I contacted Churchill Mortgage. The agent i got had no idea what I was talking about when I said I would need manual underwriting done. Another lender did know and more than willing to get me my present 2.25 rate without a "traditional" credit score.

[@mijadelsol]

What about the one where people believe you can rack up debt because of some belief that the system is going down due to some sort of end of the world senario. Over the years I have heard so many people say something to this effect.

[@thinkingitthrough2220]

A credit score only "Doesn't Matter" if you're very wealthy.

[@brerrabbit4265]

For me.... Credit cards are BAD!!! Credit is BAD!!! If I can't pay cash I don't need it.

[@sonalibarve7231]

U r really smart and good understanding of life.... U will prosper.... God bless u dear..!!!!!

[@ibislife]

Great thoughts and advise as always. And the most sensible way to do it. But, there is a but. I feel that the main thing for young people is to get into the property ladder, If that means you need to have a long time mortage, so be it. You are not taking into consideration the inflation of money. Over years the money is worth less, and your property worth more (hopefully). Normally your starter home is not the one you live your whole life in anyway. But after staying there for a couple of years, you will earn a small lump of money when selling. I have bought and sold properties my whole adult life, until the house I´m now building. I have now a small mortage, 25 years. When I get tax refund, and bonus at work, or extra cash, I put it towards my mortage, and cut the years that way. But in the normal month, my mortage will not strangle me from doing what I want or need. And it is doable for everybody. Even single mothers like me, on an average income. Budgeting is the key!

[@rainbowphoenix8168]

So glad to see a new video up! Very good advice.

[@ash86marie]

I love your page. And everything you say!

[@kellybarrett1561]

I just love your videos and have learned so much. I am one of those frugal people that others think are strange and has even gone as far as pittying my honey! I work hard have a budget and just refuse to work for stuff and he feels the same way and he appreciates my frugal way especially since he was able to retire this year! I love to "to do the math" I work part time at a very good part time job and my side hustle is house cleaning I make my money by 10:00 am and have the rest of the day at home. Your videos are comforting because it makes me feel not alone or weird lol. We are happy and practice the art of contentment daily and the people who call me weird seem stressed and unhappy with their life. Thank you for making these videos and keep them coming!

[@betterlifebroadcasting7547]

Hubby has no college degree and a basic GED..he makes a 6 figure salary. You do NOT need a college degree unless what you want to do is a "specialty" like law, science, medicine, etc. As far as the credit score goes, please, everyone, keep in mind that life may have twists and turns that you don't see coming! Ok, say you own a house so screw that credit score, right? WRONG..if your house burns down..what then? Grandma needs to move in with you and you need to renovate for the wheelchair ASAP? No credit score? Hope you enjoy carrying Grandma to the bathroom! Family emergency in another state so you have to fly there, rent a car, get a hotel (or at least eat something while you're there), no credit score and no credit card..guess you won't be attending.. also most companies check your credit score these days as a prelude to actually hiring you, especially for any job where you'll have access to a budget, payroll, cash register. The worst piece of financial advice we've gotten (that wasn't covered above..good job btw!) was, oh you don't need to buy a house, renting is just as cheap and you don't have the taxes and upkeep! I could not believe that there was anyone naive enough to think that some property owner was going to subsidize my life by paying all of the taxes and upkeep out of their own pocket and NOT pass that on to me as a rent increase. Rents go up every year on any apartment or rental you live in, and while a mortgage is a huge debt, at least it's FIXED so that payment is the same next year as it is this year.

[@frugalgreengirl]

Very well said!!

[@nataliairizarry6347]

I enjoy your very informative videos, thanks.

[@mrs8792]

If your credit score is lower, you’ll pay a lot more in interest if and when you need to buy something. I’m buying a house this Fall, but my credit will be higher, or the interest will bite me.

[@nicidevine6670]

We only pay 2percent on our loan bill and it almost paid for

[@keke8880]

Great video!!! I really dislike Dave Ramsey tbh. His advice is outdated and not helpful in most situations, especially in this economy. "Start deliverin' pizzas" is his solution to everything lol, even single moms who call in desperate for help after their husbands leave.

[@jacksprat1556]

Solid advice 👍

[@patwagner9308]

I don't know if it's a blouse or upper half of a dress....but what you're wearing is very cute. If you were talking about Dave Ramsey, I have watched some of his videos. I stopped when I saw one where he talked about engagement rings. He'd bought a 1/4 carat ring for his bride when they had very little money....but then he said you could hardly see it....so when he could, he bought her a larger one. Sounded like he was advising a caller to get the biggest they could afford. That offended me. Everybody doesn't want or like big stones......or we received a small stone when proposed to & don't want any other ring....don't want a larger diamond. We love the original. It's not about size. It's about the love behind it. Everybody doesn't need to spend a small fortune for an engagement ring.

[@ossifkiki7574]

My uncle sat me down my senior year of high school and told me take out as many student loans as I needed for college 😒. Luckily I only did that my first year and was able to pay it off quickly.

[@keke8880]

Ugh same. I was told my whole life that thered be money for me for college and I'd better go if I wanted to not be homeless. When we got to the financial aid office, my parent told me there was nothing and I had to take out as many loans as possible, all in my name, in order to start school that week so id have a chance at getting put of poverty. I literally hate myself for staying when I hear about other people who got when they could.

[@kakelinga]

I don't think Dave Ramsey teaches that your credit score does not matter. He will tell you that it's not a good thing to have a bad credit history or a bad credit score. He does teach that a credit score is not necessary because his plan teaches that one should never borrow money (with the exception of purchasing a house) and that one must always have the cash to pay for the things that one buys. He does endorse Churchill Mortgage to do a manual underwritten loan if one cannot pay cash for a house.

[@frugalgreengirl]

He does teach that a credit score does not matter. He says the score to strive to have is 0. I have heard him on many occasions say that people who care about their FICO score are idiots. He even harshly makes fun of them. Coincidentally, he also makes thousands in kickbacks every year from his endorsement of Churchill Mortgage :(

[@monicaleite5058]

I agree with what you are saying but the only issue I have about DR's encouraging to not focus on your credit score is that Churchill Mortgage seems to be the only mortgage company he can recommend that will do manual underwriting. That means you are limited to only Churchill Mortgage to finance your loan. Doesn't seem like a good idea to me to leave the largest purchase of you life in the hands of only one company.

[@kakelinga]

I am sure he make money off of the companies he endorses. I also know that he is telling the truth when he says that a credit score is based 100% on debt. I think this may be the one issue that we each see differently but never the less, I still love your channel and I believe you give great advice!

[@travisjones1593]

Can you talk about your glasses and visible in a video

[@BLANSTAR21]

I disagree about college. I think most good jobs require college education. You just have to make sure the degree you're getting has a job market.

[@keke8880]

Unfortunately this isn't true anymore. Undergrad college could help the average person get jobs those without degrees couldn't about 20 years ago. It stopped being useful around 2006. That might change again in the future of course, but for now a BA alone will get you no further than a h.s. diploma (or less). Most millennial with BA's are paid minimum wage.

[@BLANSTAR21]

@@keke8880 You have to choose a degree in which you can find a career in. That's the problem, many people have disagrees in which the job market is not available.