If you are a bit old-school, your gut reaction to free financial advice from anywhere is likely a resounding, “No.” However, a survey published by Bankrate revealed that a third of Americans sought money tips online. Let’s see if there are any gems among the gigabytes of trash…
Examples of Top #Money Advice
Believe it or not, “financial influencers” are a big deal on social media — especially, TikTok.
THERE ARE 15.3 MILLION POSTS TAGGED WITH #MONEY ON THAT PLATFORM ALONE.
Statistic from The Washington Post
Naturally, you gotta be discerning with any advice you take — financial or otherwise. With that in mind, here is some of the “information” these influencers put out there…
And, what I think of it…
Save Your Way to Wealth with High-Yield Savings Accounts
This popular tip advises people to put all their money into savings accounts with high interest rates. The idea is that down the line people will look in that account to find exponentially more capital from interest…
Unfortunately, this “huge payout” is not going to be what they expect.
Those of you who’ve followed me for a while will know my opinion on this one…
Instead, I suggest using accounts to store money until you’re ready to invest it in something with positive cash flow.
Negotiate Down the Price of EVERYTHING
Now, this is a free piece of financial advice I can not only get behind — but have given to others myself.
Thousands of #MoneyTok videos share negotiating strategies for everything from lowering your rent to getting a higher salary.
There is nothing wrong with that as long as everything is legal and all parties are in agreement.
After all, you don’t get what you deserve in life…
You get what you negotiate.
Buy a House For Your Children — When They’re BORN?
Yes, this is a real example of the financial advice people are taking — I’m not shocked it’s free…
The “logic” behind this concept is that you buy a home when your child is born at a low price at the time…
Then, you rent it out until they grow up…
And after, you sell it for beaucoup bucks for their college education or something similar. But, as most people know, there’s a glaring problem here…
MARKETS DON’T ALWAYS GO UP.
If you were around for the housing crash in 2008, you know that the tides can change at any moment.
So, let’s let this “hot tip” go cold.
Make ALL Purchases with Reward Credit Cards
This last nugget of financial advice to take advantage of the free rewards certain cards offer is not all bad…
AS LONG AS YOU USE YOUR CREDIT CARDS RESPONSIBLY.
The credit card trap is something many Americans fall into. Nevertheless, buying on credit and paying it off each month has benefits…
- It builds your credit.
- They have a built-in accounting system (statements).
- And, if the card has rewards it can help reduce certain expenses.
Just don’t use these reward cards to buy more than you normally would and it’s a decent tip. In fact, take that into all the “good advice” you’re given…
Think About What Free Financial Advice Could Cost You
The only issues that can arise from free financial advice are not because it costs you nothing…
It is because it comes from a misinformed or unreliable source.
For that reason, vet all the methods these “influencers” you to make money — as well as the individual themselves. Because at the end of the day, they ain’t gonna pay your bills if you get in hot water…
Be great and create wealth the right way.
—Grant Cardone
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