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The Worst Money Advice I’ve Ever Heard

Last Updated: July 15, 2019 BY Michelle Schroeder-Gardner - 101 Comments

Disclosure: This post may contain affiliate links, meaning I get a commission if you decide to make a purchase through my links, at no cost to you. Please read my disclosure for more info.

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As a personal finance blogger, I get asked many personal finance questions. Before I respond, I usually ask what they think they should do.

One of the first things I usually hear is advice they were given by someone else. Sometimes the advice is great, but other times I can’t help but cringe and then I have to try my best not to let my jaw hit the ground.

I really wish I made up the advice below, but sadly they are all true. Some I heard first hand, and some I heard from others asking me if the advice was something they should follow.

Below is the worst money advice I’ve ever heard:

 

1. You don’t need to save money when you’re young.

I’m all about living life and enjoying yourself. I also think money is meant to be enjoyed.

However, I think there is room to do that AND save money. Just because you’re young doesn’t mean you don’t need to save.

I’ve heard people say you don’t need to save money when you’re young because retirement is far away so you should spend all your money now and enjoy yourself. I’ve also heard that you shouldn’t save when you’re young because you can rely on others.

Both of those reasons just make me cringe. You can’t predict the future and who wants to rely on someone else for money just because they are young?

It won’t kill you to save at least a little bit out of each pay check. Plus, the more you save now, the less it will hurt later.

 

2. Just use your student loans for everything!

I recently heard a story that I still can’t believe. Sadly, I’ve heard it more than once and I actually know a few different people who do this.

This particular person takes out around $40,000 in student loans each year at interest rates of around 6% to 8%. They’ve done it for around 6 years now, so they have a significantly large amount of loans.

Thing is, they’ve never gone to an extremely expensive school. They take around $10,000 out for actual school purposes each year, and then they spend all the leftover money on vacations and multiple timeshares (they don’t use any of it for living expenses, as they work full-time and use that income to live off of).

So, they spend around $30,000 a year from their student loans on having “fun.”

NOPE, I’m not even kidding!

My mouth dropped. I didn’t even know what to say.

Sad thing is this person was telling other people to do the same.

 

3. Co-signing a loan doesn’t mean anything.

I recently heard about a person who has co-signed on several different loans. They don’t think it matters because they’re not the first person on the loan. They also thought it was okay to co-sign because all you’re doing is helping someone with their credit, and that nothing bad could come from it.

WRONG!

This advice honestly scared me. A lot of damage can come from this.

If you co-sign a loan for someone, you are liable for it if they fail to make payments on it or if they sadly pass away.

 

4. Buy anything and everything for your business because you can write it off.

Now that I have my own business, everyone keeps wanting to give me tax advice. The advice I find funniest is when someone tells me to start buying more stuff so I can write it all off on my taxes.

I just don’t get this way of thinking.

Just because you get a tax write off doesn’t make the item free. I understand buying stuff you need, but why would I buy stuff I have absolutely no use for?

 

5. Only people with money problems have credit cards.

I’ve had a credit card pretty much since the day I turned 18. I’ve always used them, have never carried a balance and I have never paid money towards interest.

A few years ago, I took my credit card out to pay for a purchase. One of the people I was with told me to put it away and that they would pay for it since I couldn’t afford it.

I looked at them confused…

I said: “What do you mean I can’t pay for it?”

This person started to tell me that only idiots carry credit cards and that I must be tens of thousands in credit card debt, and that they couldn’t believe my debt had gotten that bad.

They told me to get rid of my credit cards immediately and that I was ruining my life with them. They also said there was no way to responsibly use credit cards.

I remember standing there laughing because I had no idea where all of this was coming from. I tried to convince them I was okay, but I’m positive they still don’t believe me to this day.

Don’t get me wrong. I DO understand there are people out there who should only stick to cash, but I also think there is a way to use credit cards responsibly and to your advantage.

What do you think of the above? Would you follow any of the advice above? What’s the worst money advice you’ve ever heard?

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101 Comments
Filed Under: Budget, Debt, Life Tagged With: Budget, Debt

About Michelle Schroeder-Gardner

Michelle is the founder of Making Sense of Cents, a blog about personal finance and traveling. She discusses how her business has evolved in her side income series. She paid off $40,000 in student loans by the age of 24 mainly due to her freelancing side hustles. Click here to learn more about starting a blog!

Comments

  1. Layla says

    August 6, 2014 at 2:06 am

    Great post. I look back at how much I wasted in my late teens and early twenties and wish I made more of an effort to save. It’s a shame I wasn’t as financially savvy 10 years ago as I am now.

    Reply
    • Michelle S. says

      August 6, 2014 at 12:26 pm

      Thanks Layla! And same here, I wasn’t the greatest when I was younger with my finances.

      Reply
  2. NZ Muse says

    August 6, 2014 at 5:24 am

    Ohh man, YES on #4. Last job T’s bosses were trying to talk him into being a contractor so that he could ‘claim’ everything as a tax writeoff. No point getting the tax kickback on things you don’t need… you’re still coming out worse spending on unnecessaries.

    Reply
    • Michelle S. says

      August 6, 2014 at 12:42 pm

      Yeah, it just doesn’t make any sense to me. Things don’t just become free once you write it off!

      Reply
  3. Deb @ Saving the Crumbs says

    August 6, 2014 at 6:25 am

    Wow, all these made me cringe, too! Thanks for helping to debunk some of these “financial myths”. Another one we get told a lot is, “I don’t want to pay off my mortgage early because the mortgage reduces my taxes.” But people often don’t realize that only the interest is deductible and only if you itemize (which not everyone does). But a simple way to look at it is, would you take out a mortgage for a paid off house just to help your taxes? Usually the answer is pretty obvious. 🙂

    Reply
    • Michelle S. says

      August 6, 2014 at 1:16 pm

      Thanks Deb!

      Reply
  4. Autumn @ The Barefoot Budgeter says

    August 6, 2014 at 6:27 am

    #4 kills me every time I hear it. Sure, you can deduct any legitimate business expenses on your tax return, but that only saves your 30% (or whatever your tax rate is). It does not make the item free. I really think some people believe that if you deduct a business expense you get 100% of your money back.

    Reply
    • Michelle S. says

      August 6, 2014 at 1:17 pm

      Yeah, I don’t know why people think that!

      Reply
  5. Charlotte says

    August 6, 2014 at 6:59 am

    These are positively cringeworthy! I can’t believe people actually take this advice.

    Reply
    • Michelle S. says

      August 6, 2014 at 1:20 pm

      Yes, I know!

      Reply
  6. Kasi says

    August 6, 2014 at 7:05 am

    Ah all of those do sound like some terrible advice! Especially the student loan one, it’s really sad that some people take out loans and don’t realize that they will have to pay all of that money back with interest.

    Reply
    • Michelle S. says

      August 6, 2014 at 1:27 pm

      Yes, it is sad! I really don’t know what this person is thinking and why they think it’s okay that they tell other people to make the same mistakes as them.

      Reply
  7. Christine says

    August 6, 2014 at 7:28 am

    Working as a banker I hear all sorts of crazy money advice people have gotten. I’ve had quite a few people tell me that they were advised to carry balances on their credit cards because that’s the only way to build credit! So not true!!! I do the best I can to educate people but the ‘advice’ they get from family and friends is sometimes outrageous!

    Reply
    • Michelle S. says

      August 6, 2014 at 1:28 pm

      I’ve heard the “carry balance on their credit cards” as well. I don’t know why people think that’s true!

      Reply
  8. Jayson @ Monster Piggy Bank says

    August 6, 2014 at 7:55 am

    I am young but I was raised with the idea of the importance of saving. I’m not like others who spend too much on fancy clothes, phones, and other gadgets. I thinks it’s not what you wear that matters most, but it’s what’s in your pocket/bank (I am referring to saving). #1 worst advice when corrected will lead to a better future!

    Reply
    • Michelle S. says

      August 6, 2014 at 1:29 pm

      Thanks Jayson!

      Reply
  9. Brittany says

    August 6, 2014 at 7:57 am

    Wow, those are bad! I hate the “We might as well spend it. We’re not going to have any left at the end of the month anyways.”

    Reply
    • Michelle S. says

      August 6, 2014 at 1:31 pm

      Yeah, that’s bad too!

      Reply
  10. Stefanie @ The Broke and Beautiful Life says

    August 6, 2014 at 8:22 am

    I think a lot of people really don’t understand how tax write offs work. Like you said, nothing comes free.

    Reply
    • Michelle S. says

      August 6, 2014 at 1:32 pm

      Yeah, too many people don’t understand it.

      Reply
  11. Will says

    August 6, 2014 at 9:30 am

    Ooooh, that’s one intense Dave Ramsey follower.

    Reply
    • Michelle S. says

      August 6, 2014 at 1:33 pm

      Haha which one? I don’t know much about Dave Ramsey.

      Reply
      • WEL @ FQF says

        August 6, 2014 at 1:37 pm

        The person who gave you the ignorant, unsolicited response about using credit cards. Dave Ramsey says no one should use credit cards – citing end-of-the-world type scenarios for those who choose to swipe them.

        I don’t think DR is crazy or whatever but his views on credit cards are pretty strong.

        Reply
        • Michelle S. says

          August 6, 2014 at 1:39 pm

          Interesting. Credit cards aren’t bad and I’ve earned some awesome rewards from using them.

          Reply
          • Jason says

            August 6, 2014 at 3:47 pm

            I agree they are useful tools when we understand how to use them.

            Reply
        • Sarah says

          August 6, 2014 at 2:34 pm

          Keep in mind though, that Dave Ramsey is all about getting people out of debt and keeping them out. Most of the people who follow Dave Ramsey are those that are in dire financial straits and have WAY too much debt. His target audience, should not – ever – be using credit cards.

          Reply
  12. zaby says

    August 6, 2014 at 9:39 am

    the student was spending $ 30,000 on fun, that is very interesting

    Reply
    • Michelle S. says

      August 6, 2014 at 1:33 pm

      Haha, yes I agree.

      Reply
  13. Holly@ClubThrifty says

    August 6, 2014 at 9:41 am

    #4 drives me nuts. People think that “writing something off” makes it free. NOPE!

    Reply
    • Michelle S. says

      August 6, 2014 at 1:34 pm

      Makes no sense!

      Reply
  14. Mrs. Frugalwoods says

    August 6, 2014 at 10:13 am

    Oh my goodness, those are terrible bits of advice! I see friends adhering to #1 all the time–they just do not get the value of compounding interest. It’s such a misconception that you can just “catch up” on your retirement savings when you’re 50 or so. Truly sad.

    Reply
    • Michelle S. says

      August 6, 2014 at 1:35 pm

      Yes, it’s sad. I’d rather save now.

      Reply
  15. Aldo@MillionDollarNinja says

    August 6, 2014 at 10:51 am

    These are all pretty terrible advice.
    The one that I wish would be different for me is saving money when I was younger. I didn’t save anything at all, not because somebody told me to, but because I wanted to party and have fun. Oh well, now I know.

    Reply
    • Michelle S. says

      August 6, 2014 at 1:35 pm

      Yeah, I didn’t start saving until pretty recently. Wish I realized sooner.

      Reply
  16. Christine Berry - Wealth Way Online says

    August 6, 2014 at 11:11 am

    Wow…! Some of these tips make me want to smash my head against a wall…! No wonder debt is the norm these days…

    Reply
    • Michelle S. says

      August 6, 2014 at 1:36 pm

      I agree!

      Reply
  17. Stephanie says

    August 6, 2014 at 11:13 am

    Holy moly, these are awful! I opened an IRA when I was only 21. I put in something like $1000 or $1500 and just let it sit until I finished college and had a full-time job, but I figured an extra year or two for that money to start working for me was better than nothing!

    I have to admit, I did pull some shenanigans with student loans when I was in grad school, but I truly worked to my advantage. I got subsidized federal loans (didn’t start accruing interest until 6 months after I graduated) that exceeded my tuition by a couple thousand dollars each year. Instead of immediately paying back the excess, I put it into CDs (back when CDs were actually earning a decent amount of interest!) until the month before the loans started to accrue interest. Then I cashed out the CDs and paid back the original excess loan amount plus a few hundred dollars worth of interest!

    Reply
    • Michelle S. says

      August 6, 2014 at 1:38 pm

      Stephanie! I haven’t heard from you in forever! I was actually thinking about you the other day. Haha I hope you are doing well!

      Reply
      • Stephanie says

        August 6, 2014 at 2:19 pm

        I am doing well! Life got crazy for awhile after I went back to work full-time and I accidentally took a year-long blogging break! I didn’t write or read pretty much anything since last August, oops? But now I’m trying to get back into blogging and catch up with what everyone else has been up to. It looks like you’ve been doing quite well yourself! Congrats on the wedding and your successful venture into self-employment! 🙂

        Reply
        • Michelle S. says

          August 6, 2014 at 5:11 pm

          Glad you’re doing well! I’m also glad that you’re going to get back into blogging 🙂

          Reply
    • Rachel R. says

      April 13, 2015 at 8:12 pm

      I had similar thoughts regarding those unsubsidized loans. It’s actually kind of silly to pay back the excess right away. Even sitting in a plain old SAVINGS account it will still go (a little) farther to pay back the loans once they come due than if you just turn right around and pay it straight back.

      Reply
  18. Tania says

    August 6, 2014 at 11:28 am

    Oh, wow! I think people are doling out “live it up and don’t care about your future advice” instead of “sound financial advice”. They certainly aren’t doing their friends any favours. Glad I never had any “friends” like that–LOL.

    Reply
    • Michelle S. says

      August 6, 2014 at 1:38 pm

      Haha yes these people shouldn’t be giving out advice.

      Reply
  19. Kipp says

    August 6, 2014 at 12:23 pm

    Arrrg at #2. I don’t know many people who vacationed off of student loans, but there are probably quite a few I know that lived above a minimal existence being subsidized by student loans. Instead of working they were using it to buy food, pay for apartment (or house), or whatever. But… if you don’t have a job you should try to keep that crap to a minimum, like cheapest housing, or cheapest semi-healthy food, and they didn’t really.

    Reply
    • Michelle S. says

      August 6, 2014 at 1:41 pm

      I will say that I took out extra a few semesters, but nothing too crazy. I think it was an extra $2,000 that was taken out accidentally (got a few extra scholarships at the last minute and I had already paid for the semester so I received a refund), but this person has taken out over $100K in extra loans which is INSANE!

      Reply
  20. Michelle S. says

    August 6, 2014 at 12:28 pm

    Yes, the co-signing comment is just scary!

    Reply
  21. Money Beagle says

    August 6, 2014 at 12:31 pm

    One time a recent college grad was commenting on how much they had in student loans when someone told them to go back to school because then the loans are deferred. It took about every piece of me to not lay into the person.

    Reply
    • Michelle S. says

      August 6, 2014 at 1:42 pm

      Yeah, that’s one I’ve heard too. Going back to school just to defer loans is such bad advice!

      Reply
  22. Shannon @ The Heavy Purse says

    August 6, 2014 at 12:54 pm

    #2 is a big problem for lots of students because they actually believe it’s okay and nobody tells them any differently. Until year later, as they are paying and paying and paying off those student loans. They now realize that all those trips, rounds at the bar, etc … shouldn’t have been paid with student loan money. And #5 – Wow a bit presumptuous on your financial situation. We can laugh and cringe at the bad advice people dole out but the worst part is lots of people believe this bad advice. Yikes!

    Reply
    • Michelle S. says

      August 6, 2014 at 1:43 pm

      Yes, it’s sad that some people actually believe their bad advice. It’s even scarier when they try to convince others to follow their bad advice too.

      Reply
  23. EarlyRetirementGuy says

    August 6, 2014 at 1:26 pm

    Ignore #1 and ignore years of compound interest! I’m in my 20s and know so many people yelling YOLO while they pile everything onto their credit cards and ‘live for the moment’. These are the ones likely to be working into their 60s and buried under piles of debt.

    Reply
    • Michelle S. says

      August 6, 2014 at 1:49 pm

      Haha people who say YOLO and rack up credit card debt scare me.

      Reply
  24. Michelle S. says

    August 6, 2014 at 1:32 pm

    It’s crazy how expensive some sports are. Ignore the haters! 🙂

    Reply
  25. Alicia says

    August 6, 2014 at 1:42 pm

    Oh my gosh, I am laughing at that credit card comment. I know loads of people who use credit responsibly.

    The opposite of your bad money advice: one of my friends took out way more student loans than they needed because they had full ride scholarships and lived at home. He then threw it in a decent GIC (10 years ago when they were OK), then paid it off when he graduated from university without paying a dime of interest. Talk about a smart thing to do in undergrad when I didn’t even know about that kind of stuff.

    Reply
    • Michelle S. says

      August 6, 2014 at 1:50 pm

      I had a professor who did that too. He said his student loans were at a 2% interest rate so he invested all of it. He was a finance professor and a genius so he knew what he was doing haha.

      Reply
  26. Jon @ Money Smart Guides says

    August 6, 2014 at 3:42 pm

    I’ve heard the student loan advice before. Sadly, I’ve known a few people that took the entire amount they were awarded (even though they didn’t need it all) and blow it on unnecessary things. When they finished college, they questioned how college cost that much. It really didn’t they just blew a bunch of money in other ways.

    Reply
    • Michelle S. says

      August 6, 2014 at 5:24 pm

      Yup! It’s sad.

      Reply
  27. amanda says

    August 6, 2014 at 3:48 pm

    sometimes people make no sense.

    so many people are “hush hush” about money and the only way you can get a solid grasp on finances and such is by doing research. at 20 – that was the last thing on my mind. i always enjoy reading these types of posts now that i’m 28 and have realized how important money really is – aside from “buying things”.

    so thank you 🙂

    i just did a post today about money. it’s very broad but hopefully it’ll be the first of many!

    Reply
    • Michelle S. says

      August 6, 2014 at 5:37 pm

      Thanks Amanda for reading 🙂

      Reply
  28. Kayla @ Shoeaholicnomore says

    August 6, 2014 at 4:04 pm

    Wow! Some of these are positively scary and some are just sad 🙁 I know people really think like this because I’ve heard some of these before.

    Reply
    • Michelle S. says

      August 6, 2014 at 5:38 pm

      Yup! AH!!

      Reply
  29. Brandy @ Busted Budget says

    August 6, 2014 at 5:57 pm

    If I would have saved more when I was younger, I would be sitting pretty right now! I wish younger people understood the benefits of saving whether it be retirement or a savings account. Unfortunately, it’s too easy to feel as if you have so much time ahead of you to save money. It catches up to you quickly.

    Reply
    • Michelle S. says

      August 6, 2014 at 6:07 pm

      Yes, it definitely catches up quickly. Thanks Brandy for stopping by my blog today!

      Reply
  30. DC @ Young Adult Money says

    August 6, 2014 at 6:27 pm

    I think this one’s a mixed bag -> “You don’t need to save money when you’re young.” Actually, not the advice itself, but the debate about whether it’s easy to save and enjoy yourself. I think it has a LOT more to do with income level than anything. If you have a high income it’s easy to throw a portion of your money in a savings account while still going out and doing things that cost money (travel, entertainment, etc.). If you make a low income you are forced to chose between the two or figure out what you can do for cheap or free.

    Reply
  31. Amy says

    August 6, 2014 at 9:10 pm

    The worst piece of financial “advice” I received was late in college when someone told me I didn’t have to pay off my full credit card each month. I already knew this was technically the case, but I had never thought of it as something I could do myself. I wish I hadn’t taken this advice… 🙂

    Reply
    • Michelle S. says

      August 7, 2014 at 12:37 pm

      Ugh, I’ve heard that one before. Sadly there are many people out there who think the minimum payment each month is good enough.

      Reply
  32. Laurie @thefrugalfarmer says

    August 7, 2014 at 7:17 am

    Oh my goodness, this post made me nauseous! When I read “advice” like this, it makes it clear why this country is in the financial state it’s in. 🙁

    Reply
    • Michelle S. says

      August 7, 2014 at 12:38 pm

      Yes, exactly!

      Reply
  33. MomofTwoPreciousGirls says

    August 7, 2014 at 8:47 am

    Well, I’m thinking instead of the government trying to “help” people with their loans and giving all the forgiveness, MAYBE they should be more diligent about how it’s used. Restrict it to send tuition right to the schools. And maybe filling student accounts for room/board, books and meals. Anything else is the students responsibility to pay for. Either by the bank of mom and dad (IF that’s the arrangement) or by (GOD FORBID) working for it. New debt would be cut significantly.

    Reply
    • Michelle S. says

      August 7, 2014 at 12:39 pm

      I agree!

      Reply
  34. MomCents says

    August 7, 2014 at 8:58 am

    That is pretty bad advice! Here is another —- but a home for the tax benefit….um….what? How about buy a home because I want to and I can afford it.

    Reply
    • Michelle S. says

      August 7, 2014 at 12:39 pm

      Yes, that’s a good one to add too!

      Reply
  35. Renee says

    August 7, 2014 at 10:56 am

    Ugh! Horrible money advice! In college I was really young and naive and didn’t understand any of this and my best friend convinced me to take out an extra student loan for some trips (goodbye $6,000 plus interest now). She also helped me accrue the mindset of using credit cards because “anything you want for $200 a month is a great deal!”. Luckily as the years went on I realized this is NO WAY to live and my husband and I started paying off our debt and building a good savings.
    I had a conversation with her awhile ago and she told me to take a cash advance on our credit card to pay for some house repairs -absolutely not! Then she said that her and her husband plan to go up into their eyeballs in debt and when they cant handle it anymore they will just file bankruptcy-my jaw basically dropped to the floor! I would love to see a post on the process of filing bankruptcy since it seems like many people might in the same mindset as my friend, unfortunately!!!

    Reply
    • Michelle S. says

      August 7, 2014 at 12:43 pm

      OH MY GOD! Your friend sounds scary. She needs some responsibility in her life and she needs to learn how to take care of herself.

      Reply
  36. John @ Wise Dollar says

    August 7, 2014 at 1:27 pm

    Wow, just wow…#2 is nuts! Well, all of them are really. But, people wonder why we have issues with student loan debt. We hear #4 all the time as well. It’s like they think it makes the item free or something.

    Reply
    • Michelle S. says

      August 7, 2014 at 11:14 pm

      Yeah number two still kills me!

      Reply
  37. KK @ Student Debt Survivor says

    August 7, 2014 at 9:22 pm

    Sadly, I’ve heard most of these and know people who took out students loans to travel and buy “stuff”. As for the person who offered to pay for you because you must be in credit card debt if you have credit cards, ouch! I’d have a hard time not reacting negatively on that person. I use my credit cards for everything and I never carry a balance.

    Reply
    • Michelle S. says

      August 7, 2014 at 11:17 pm

      Sadly, I’ve had more than one person offer to buy something for me because they thought I was too poor. Many like to think that just because I save money and have a budget that we have money problems.

      Reply
  38. James Salmons says

    August 8, 2014 at 10:18 pm

    Yes, I have heard ALL of them, and the rationalizations are incredible aren’t they.

    One related thought to number 4 is not so much advice as a view of giving by those with businesses or more money: “It doesn’t cost them anything because they just write it off on their taxes.”

    Of course we know they only get to use the deduction to reduce their income, not the actual tax amount which is only a fraction of that, but people with these off the wall views don’t understand much about money…or math either for that matter.

    Reply
  39. Tennille says

    August 9, 2014 at 8:10 am

    My mom gave me the advice of living off of student loans while in college. I fallowed it, but thankfully only to the tune of about $17,000! The money went towards necessities, and school. Nothing else. Personally who ever is spending money like that person did on timeshares is bordering on criminal behavior, but that’s just my opinion.

    Reply
  40. Kalen @ MoneyMiniBlog says

    August 9, 2014 at 4:13 pm

    That’s a lot of terrible advice! I have had someone ask me what I think about co-signed recently. I told them to run away from the person asking them to do it. lol. It’s so dangerous. If they need a co-signer that means the bank thinks they WON’T PAY. And the bank is often right about that. I even know someone that co-signed for their dad and his dad quit paying so now he is stuck with the payments for a car he never sees or drives.

    Reply
  41. Natalie Woodworth says

    August 11, 2014 at 11:25 am

    great post!
    Some people just like saying a lot of stuff they know nothing about, never checking their sources because they think they know everything about anything…

    Reply
  42. linda albarran says

    August 11, 2014 at 3:38 pm

    I would love to win this contest prize. Keep up the great blogs.

    Reply
  43. spectre phang says

    August 11, 2014 at 8:22 pm

    the number 2 point is scary because student can end bankrupt if fail to find job on time to pay off the loan or interest

    Reply
  44. Barrie says

    August 12, 2014 at 12:24 am

    I married a man 9 years older than me who had a father who had him set up an IRA when he was immediately out of college. I started my IRA as soon as I finished my master’s degree. If not for my hubby, I don’t know when I would have started my IRA but I know it wouldn’t have been as it early as I did!

    Reply
  45. Lilly Campagnol says

    August 12, 2014 at 8:07 am

    It is downright scary some of the things that people will do to their finances.

    Reply
  46. Lisa E. @ Lisa vs. the Loans says

    August 12, 2014 at 12:54 pm

    Oh my gosh, these are all making me cringe! I know too many people who use their student loans for things other than being a student! I’m glad that my loans went straight to my school so i never had the opportunity to spend it on stupid stuff. I have a friend who took out student loans when she absolutely didn’t need to – her dad was a veteran, which meant her tuition was absolutely free! It makes me shudder…

    Reply
  47. Julie Wood says

    August 12, 2014 at 9:45 pm

    Taking out this much student loans and having that much debt and using it for pleasure is so stupid. It such a bad idea because it can ruin you credit and Student loans are only for school. Not saving money when you are young and not saving money at any age is so bad. People should learn that if they work hard and save that their savings can help them out when they need it!! Like getting laid off from work, getting sick and not being able to work. My savings in the bank help me have so much peace and I am not afraid that I will not have money to pay the bills.

    Reply
  48. M.Clark says

    September 7, 2014 at 8:31 pm

    I agree, what you have listen above is very bad advice. I think if you have common sense you should be able to tell that if the advice you are being given is bad or not. Thank you for sharing this post.

    Reply
  49. Rebekah Martin says

    December 31, 2014 at 8:26 am

    I worked full time and went to school full time when I was in college. I’m absolutely KICKING myself for not saving any money. I mean, it’s absolutely ridiculous that I didn’t. I probably wouldn’t have the money problems I have now if I’d actually saved money. Thankfully, all of my student loans actually went to school, but still. Sheesh! No wonder we’re on the verge of a student loan bubble burst!

    Reply
    • Michelle S. says

      December 31, 2014 at 11:42 am

      I feel the same way. Why didn’t I save?!

      Reply
  50. Christopher says

    February 13, 2016 at 12:03 pm

    The cosigning comment is never good advice. Had a relative with a gambling issue overseas. The private lender sent out loan sharks to use any means to collect and it was a dangerous situation. They would also show up at my cousin’s work area since they consigned the loan.

    Reply
  51. Danielle says

    February 15, 2016 at 10:33 pm

    Wow, yea my jaw dropped at the student loans, and again at the co-signer part! Now I’m no financial advisor by any means, I’m terrible with money, but I have high interest loans, but I used those to actual help me through college, nothing really else was left to do anything with. I wish I didn’t have to do that, but its life. My mother had to survive almost on student loans, as it were she was single no job with 2 kids, she reared in our heads that you need an education but it still wasn’t fun times, and she told me if she had to do it again, as she is paying the annoying student loan bill she would not do it over again.
    As for the co-signer I wouldn’t co sign for my kids, let alone for 3 separate people. Now once again, my mother’s boss stepped in and helped my mother with her first new car purchase, and she only worked there for 3 months! Talk about nice! But i still wouldn’t do it unless I know the amount is something I could handle without stress. I can’t believe the advice people try to give out nowadays none of this advice makes any sense to me, and I’m horrible with money!

    Reply
  52. Jacqueline Knight says

    March 12, 2018 at 2:29 pm

    I was almost rolling on the floor laughing when I read this!🤣
    You did it again Michelle! Great post 😝👏 I am 24 years old, I wish everyone 16& up would read this!

    Reply
    • Michelle Schroeder-Gardner says

      March 12, 2018 at 2:34 pm

      hahaha thanks!

      Reply
  53. Heather says

    March 12, 2018 at 2:45 pm

    Love the credit card one. I never pay interest and I get $50-100 cash back every month. I’ve earned free flights one of which was a $10,000 first class ticket.

    Reply
    • Michelle Schroeder-Gardner says

      March 12, 2018 at 2:48 pm

      Great job!

      Reply
  54. Nancy Perkins says

    March 12, 2018 at 3:31 pm

    I have made my share of money mistakes, believe me. With that said, I have NEVER consigned a loan for ANYONE and refuse to do so.

    Reply
    • Michelle Schroeder-Gardner says

      March 12, 2018 at 3:43 pm

      Cosigning can be so bad!

      Reply
  55. Darren Howarter says

    March 12, 2018 at 3:52 pm

    Hello Michelle,

    Great advice all around. We happen to use credit cards for EVERYTHING! We pay them off in full every month so we can build airline miles and travel for free. We have done this for 28 years. We have had countless flights and we have ZERO DEBT!

    Worst advice I ever heard was to buy a house with the longest mortgage you could get. Then pay the smallest amount that you can every month. Never pay the house off. Just enjoy the house and know that you will pay the rest of your life. You will end up paying 100’s of 1000’s of dollars in interest if not more than a million dollars. Unreal.

    Reply
    • Michelle Schroeder-Gardner says

      March 12, 2018 at 6:16 pm

      Yes, we use credit cards for everything too!

      Reply

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My name is Michelle and I'm the author/owner of Making Sense of Cents. Learning how to save money and make more money changed my life. It allowed me to pay off $40,000 in student loans, start my own business, and I now travel full-time.

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