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6 Worst Financial Suggestions Given By Your Friends

6 Worst Financial Suggestions Given By Your Friends

We often turn to our friends for advice in our day-to-day lives. Whenever we encounter a problem in our relationships or a bump in our jobs, the support of our friends manages to help us get through it. This is why we talk to them about our money management as well. Friends stick together, right?

However, if these six worst financial suggestions are what you hear coming out of your friends’ mouths, perhaps it’s better for you to take a step back, reflect on this and turn to a professional financial advisor instead:

1. “If you can afford it, go and buy it.

Peer pressure is not just relevant to drinking alcohol or participating in illegal activities. It’s also highly prominent when it comes to spending money. How so?

When we’re with our friends, we subconsciously fall into the trap of lifestyle inflation. We think that we can just buy anything – even if we don’t want or need it – just because we can afford it.

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Is your friend wearing a branded dress that you don’t even like the style of? It doesn’t matter! You’ll buy it anyway, just to show to everyone that you have enough money.

2. “Use your credit card all the time – it’s free money!”

One of the worst financial suggestions is telling someone to use their credit card because it’s free. “No one gets imprisoned by drowning in credit card debt,” they’ll tell you. “Spend as much as you like; it’s like free money handed out by your fairy godmother.”

Well, the next time you use your credit card for something that you know you can’t afford, think about this: is that item really worth the trouble of getting blacklisted by banks, being denied loans and receiving a bad credit rating?

Credit cards aren’t free. They are ridiculously expensive. Take time to read the fine print!

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3. “Take as much time as you want going to college, it’s worth all the debt anyway.”

Going to college is a noble act of its own. But if you’re just going to study because you can’t find a job yet, or because you’re not sure what your passion is yet, then don’t.

Consider the opportunity cost involved in this scenario. How much money could you have earned working instead of getting your Master’s degree?

4. “Want easy money? Put all your money in ABC Inc.”

A universal rule in investing is that it always carries a risk. Investing is all about diversifying your investment so that you can manage the risks. Diversifying means that you won’t put everything in one company and in one security.

Instead of putting all your efforts in stocks and in just one company, why don’t you spread out your money in different companies? Take this one step further and hold different securities, such as treasury bills and term deposits too.

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If you put all your money in one company and that company folds, then you’ll be sorry. Believe me: I learned this the hard way firsthand.

5. “Let’s travel luxuriously. We’re only young once.”

You might have heard this one before: “It’s easier to earn money than to earn moments.”

Now, that statement may be true. It may also be false.

But don’t you think it’s better to save money and earn moments at the same time? Traveling is about experiencing new cultures and being immersed in a new way of living. It’s not about checking in at five-star hotels and eating at hugely overpriced restaurants.

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6. “Just save and you’ll be fine!”

Saving is important. It’s the first step up the financial ladder. But, if you want to manage your money wisely and let it work for you, don’t just settle with saving money. Start investing, tooFirst, start with investing in your knowledge by reading up on personal finance books. Then, save enough money for you to start an investment account.

Our friends may have our best interests at heart. But if they’re not experts at finance, they need to think twice about giving these terrible financial suggestions. Don’t you think so too?

Featured photo credit: DSCF1734.JPG/ronnieb via cdn.morguefile.com

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Published on July 4, 2018

Top 10 Recommendations on Money Management Apps

Top 10 Recommendations on Money Management Apps

Don’t want to overspend your budget, swipe your credit card too many times, and feel like a financial mess? Instead of beating yourself up for the bad financial decisions you’ve ever made, create a new plan!

The solution is simple, save more and spend less. But, we all know it’s easier said than done.

One problem is finding quality apps that save you time and money, and aren’t just hype.

Luckily, there’re many great money management apps available at your fingertips. Here are 10 reliable money management apps that can help you save money, and crush debt.

1. Personal Capital

    When was the last time you’ve tracked your net worth? Probably months ago or maybe never. Personal Capital allows you to easily track your net worth and plan for retirement.

    Here are some of its main features:

    • Sync many investment accounts, and expenses (mortgage, credit cards, etc.) in one place
    • Discover hidden fees and how much they’re affecting your retirement plan
    • Wealth management for investors requiring a long-term strategy

    With Personal you’re free to track your expenses and net worth.

    Available for: iOS and Android

    2. Mint

      If your smartphone could only install a few apps, Mint would be one of them. Why? Because Mint tracks all your balances and bills in one place.

      Here are some of its main features:

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      • Effortlessly track all your bills and balances in one dashboard
      • Categorized expenses to understand where you spend your money
      • Uncover hidden fees, and determine your investment style with sophisticated retirement tools.

      Feel at ease with managing your money by a reputable company that isn’t going anywhere.

      Available for: iOS and Android

      3. YNAB

        Everyone needs a budget, there’s no way around it. YNAB (You Need A Budget) is an easy to use app that will change the way you think about money. Their motto is to “give every dollar a job”, and you’ll quickly discover why.

        Here are some of its main features:

        • Easily sync all bank accounts in one place
        • Visually see your debt paying progress with eye-catching charts and notifications
        • Customized categories setting saving goals

        The best part about YNAB is the community that comes along with it. You can hop on the YNAB forum to receive support, listen to the YNAB Podcast or stay tuned for their weekly videos.

        Available for: iOS and Android

        4. Wealthfront

          Albert Einstein once said “compound interest is the eight wonder in the world”, and for a very good reason. The problem is, most people are scared or unwilling to learn the basics of investing. This is why Wealthfront is the perfect solution for the hands-off investors.

          Here are some of its main features:

          • Variety of investment account options including IRA, Roth IRA, and more
          • Your portfolio composed of 7 different asset classes
          • Automatically rebalanced portfolio
          • Daily tax loss harvesting

          Wealthfront is perfect for people requiring investment guidance, or prefer a hands-off solution.

          Available for: iOS and Android

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          5. Clarity Money

            If you’re staying on top of your budget but want to take your finances to the next level, Clarity Money can help you. Clarity Money helps you stay under budget and build a personalized savings plan.

            Here are some of its main features:

            • Easily cancel subscriptions with one click
            • Synchronize bank accounts fast
            • Transfer money effortlessly between different accounts

            Clarity Money isn’t an app that does it all. But, it does make transferring money and canceling subscriptions fast and efficient.

            Available for: iOS and Android

            6. Acorns

              What if there was a way to quickly gain confidence in investing your money, without too much risk? There is, and Acorns is your solution. With Acorns’s technology, you’re able to make investments as small as $5.

              Here are some of its main features:

              • Automatic contribution option
              • Customized portfolio tailored to your needs
              • Low management fees ranging from $1-$2 per month

              Stop wasting dollars on expensive coffee. Instead, invest them towards a brighter financial future.

              Available for: iOS and Android

              7. Albert

                Do you budget by only subtracting your expenses from your income? If so, how would you discover any overpayments or extra money you could save? This is where Albert shines, and it does it all free.

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                Here are some of its main features:

                • Receive notifications for overpayments, hidden fees, and low balances
                • An Automatic budget that’s built around your spending and income
                • Easily track debt and set new financial goals

                While Albert does offer a paid option, most of its core features are FREE. So, what better option to save?

                Available for: iOS

                8. Prism

                  Have you recently forgot to pay a bill because life got in the way? Prism automatically tracks your bills and syncs your bank accounts in one place.

                  Here are some of its main features:

                  • View all your account balances in one glance
                  • Bill due dates are automatically pulled and tracked
                  • Receive early reminders for upcoming bills

                  If your budget is on “fleek” but can’t seem to stay on top of your bills, Prism is your go-to app.

                  Available for: iOS, Android, Windows, Amazon

                  9. Mvelopes

                    Remember hearing about people using envelopes to budget their money? Well, Mvelopes is the new envelope system for this generation. Easily create monthly budgets and track your saving goals.

                    Here are some of its main features:

                    • Connect unlimited bank accounts
                    • Real-time budgeting with auto transaction syncing
                    • Low monthly $4 fee or $40 annual

                    Mvelopes can help you crush debt, save more, and help you stop overspending. With its low monthly fee, it’s worth a try.

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                    Available for: iOS and Android

                    10. Wallaby

                      Most people don’t have time to track their credit card’s changing rewards and interest rates. Because of this, you need help reaping the most of your credit card’s rewards. Wallaby is the app that will help you do just that.

                      Here are some of its main features:

                      • Automatic recommendations for the best credit card to use for each transaction
                      • A friendly user interface, displaying credit cards with their corresponding images
                      • Free to use

                      If you’re using the same credit card to make your purchases, you may be leaving money on the table. Give Wallaby a try if you’re ready to maximize your credit card’s rewards.

                      Available for: iOS and Android

                      Take control of your finances and experience financial freedom

                      Picture yourself staying on budget and saving more money than you’d ever imagined.

                      It took hard work and dedication but you’d finally learned how to manage your money. You have to start taking control of your spending and saving habits.

                      You now have a list of reliable apps that can help you build better money habits, what are you waiting for?

                      Featured photo credit: Pexels via pexels.com

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