Tuesday, April 8, 2014

Money Tip: Never Take Financial Advice From Broke People


Has anyone else ever noticed how quick broke people are to give financial advice? They love to tell you how you should spend ridiculous amounts of money on jewelry, vacations, clothes, new cars, education, and handbags. Oh and housing, don't get me started on housing, according to them you need to live in a better neighborhood and waaaay bigger house. Those broke people, I tell ya, they are an opinionated bunch and love spending not only their money, but the bank's money, and your money too!

I am here to tell you it is a very bad idea to listen to broke people when it comes to money, after all they are broke for a reason. Often times that reason is connected to their overspending and lack of saving. If you are not careful it can be easy to get caught up in their whirlwind of poor financial values and behavior. Being financially irresponsible appears to have become an epidemic in America, recent data from the Fed finds the average U.S. household owes $7,115 on their credit cards; looking only at indebted households, the average outstanding balance rises to $15,252. Furthermore, a whopping 40 percent of households spend more money than they make.  These statistics suggest there is a big chasm present between the big spenders and the big savers.

So how can you ensure you end up on the right financial team? I can help with that. From time to time I'll post nuggets of financial wisdom to help you stay on track. Lesson #1: never take financial advice from broke people. Always look to individuals with an economic standing you'd like to adopt for advice.

That's all for today. Have you had an experience with being pressured to overspend? Are you currently working to get your finances in order? I'd love to here from you.

***Please note by "broke people" I am referring to individuals who make a decent wage, yet spend it unwisely***

"If your friends that are broke aren’t making fun of you, then you are not on track. If your family says, “Look, they’ve joined a cult!” then you are right on track." 
~Dave Ramsey

5 comments:

  1. This is a tricky subject. A lot of us in today's world don't have proper financial education, so we take what we hear from the media and our friends. Often times we don't check to see if our friends are the people you speak of. I would love to hear what you think on the best way to use your money.

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  2. This is so true. I just read an article somewhere that discussed a very similar topic. It said if we want to improve our financial situation, we need to hang out with people who are financially doing well (instead of people who are broke.)

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  3. I needs to spend some time learning more or understanding more. Thanks for excellent information I was looking for this information.

    Independent Financial Adviser Weston-Super-Mare & Independent Financial Adviser Bristol

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  4. I would add another tip- be careful when listening to financial planners and advisors- they are salespeople seeking commission money.

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  5. Thanks for this great post, i find it very interesting and very well thought out and put together. I look forward to reading your work in the future. seo westchester ny

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