Financial Advice To Keep or Toss In 2020

The closing of one year and the beginning of another is not only a great time to focus on establishing new, healthier habits and philosophies, but also to recognize those that no longer serve us well because our lives have changed. Taking inventory of these is what ultimately allows us to create space for self-betterment.

As we all know, there’s good life advice and there’s bad life advice, and the same goes for financial advice. As part of our #NewDecadeNewYou campaign, we’ve rounded up five pieces of common, personal financial advice from the 2010s that are either still relevant or outdated, in the hopes that they will help us all better reach our goals in 2020 and the decade ahead.

 

 

Keep or Toss: “You should stop buying coffee, and other ‘nonessentials,’ to save money.”

 

Keep or Toss:

“You should stop buying coffee, and other ‘nonessentials,’ to save money.”

Our vote on this one? TOSS

We know coffee isn’t the reason so many people are struggling to keep up with their finances. With housing and healthcare costs rising, spending money on nonessentials isn’t the main thing holding you back. When it comes to buying a cup of coffee, it’s all about moderation.

 

Keep or Toss: “Let go of FOMO and welcome JOMO.”

 

Keep or Toss:

“Let go of FOMO and welcome JOMO.”

We relish this! It’s definitely a KEEP

At one point you might have experienced FOMO (Fear Of Missing Out), but what about celebrating JOMO (Joy Of Missing Out)? We’re all about embracing JOMO. Take part in things that you truly want to be doing, and let the others slide by without a guilty thought. This makes it more likely you’ll commit to the plans and the joy of saying no will help you say yes to things that really allow you to thrive.

 

Keep or Toss: “You should put a portion of every paycheck into your savings.”

Keep or Toss:

“You should put a portion of every paycheck into your savings.”

It wouldn’t be a money blog if we said anything but: KEEP

This can be a great way of getting in the habit of putting money away. Transfer your surplus into a savings account at the same time each month. If you can create an auto-transfer, then even better! Remember, there’s nothing wrong with starting small. Even setting aside $20 builds the habit. Schedule gradual increases to your savings allocations until you reach your ideal amount.

 

Keep or Toss: “Buying is better than renting — renting is like throwing money away.”

Keep or Toss:

“Buying is better than renting — renting is like throwing money away.”

Advice in finance is often a grey area. It is largely dependent on your personal goals, values and situation. For this reason, we have to say to this archaic mindset: TOSS

When it comes to buying a home or renting, there are many things to consider and the answer isn’t cut and dried. The decision to buy or rent is just as much a lifestyle decision as it is a financial one. You’ll want to consider things like longevity and flexibility, personal values, amenities, and more. For example, if you buy a house, will you still be able to take those much-needed vacations every year? The burden of a mortgage may hinder your ability to jet set.

 

Keep or Toss: "It is better to use cash instead of credit whenever possible."

Keep or Toss:

It is better to use cash instead of credit whenever possible.”

While cash is great and can seem easier to watch your spending, it doesn’t do much when it comes to helping companies and lenders review your payment history. Responsible credit card usage, on the other hand, not only helps you purchase what you want and need, but helps build up your credit score. So know thyself. If you can look at a credit card as a tool for building a strong financial future and don’t see the credit limit as “free money”, then you definitely want to TOSS this advice.

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