Invest in Beanie Babies!

Do you remember when that was all the hype out there amongst people who were trying to make a fortune? How did that work out again…?

I’m sure that there are much worse examples of people offering up bad advice about finances than that, but that was a big one that I could think of…

What’s the worst financial advice that you ever received?

Let’s see how AskReddit users responded.

1. Was it worth it?

“About 5 years ago, I had a friend who was trying to convince me to study through a private college because they “gave her a free ipad”.

She never finished the course, but kept the iPad (you only got to keep it once you pay your fees and graduate. Mind you, the price of the course included the iPad so it wasn’t free).

So last year, four years later, I get a call from the college asking for her contact info. She put me down as a reference and they were chasing her down because she still owed her fees and wasn’t entitled to keep the iPad.”

2. Don’t go anywhere near that.

“Guy I haven’t seen in three years or so wanted to talk me into starting a business with him, because he just got into college for a Bachelor’s degree in business.

Yeah sure, let me get my cheque book out in this badly illuminated garage while we’re both drunk.

Guy also got into MLM and weird self-optimization preachers.”

3. They’ll totally forget about you.

“Just ignore the collection call and eventually they will leave you alone….

I didn’t follow this advice.

I had a parking ticket I didn’t know about that ended up on my credit and the guy I mentioned it to gave me that bit of wisdom.”

4. A good move for you.

“”Don’t go to community college, you’ll never get a job. Instead apply at X and X colleges.”

My grandmother, aunt, uncle, and cousin all told me this, and I really considered their advice because my parents really didn’t give a sh*t what I did.

Since I didn’t get any scholarships from high school, I decided at least if I went to CC and didn’t get a job I wouldn’t have student debt and I could just do something else.

I went to CC for two years totally free on FAFSA grants (it was 800$ a semester LOL) and did so well I transferred to a university with a (almost) full ride.

I am now a semester away from graduation with a job lined up and all of 4k of student debt which is likely to be forgiven anyway.”

5. Thanks, Dad…

“My dad in 2008 – “Don’t invest that $1,000 into Apple.”

My dad in 2012 – “Tesla is a pipe dream. Stock won’t be worth the paper is printed on.””

6. Bad advice.

“An uncle told me I should rather spend my money and enjoy life because you only live once, rather than save your money to build up a retirement find.

I am now in my 50s and c0rona unemployment has devastated the little bit of savings I had. Should never have listened to Uncle Jarvis.”

7. Gee, thanks!

“High school guidance counselor told me not to go to a state school for college.

Reasons were 1. I was the valedictorian so I could “do better”, 2. if i wanted a good job after school I’d need a name on my resume of a “more respectable” school, and 3. a “better” school would have more networking opportunities.

Yeah so that was a lie. Now I’m in tons of student loan debt. And my first boss after college had gotten his degrees at the state school I originally wanted to go to.”

8. Is that legal?

“This is from an accountant…

“You should create a LLC and declare your salary as business profits so you don’t have to pay taxes”.”

9. False.

“Not the worst but a common misconception I hear is parents telling their kids to use their credit cards and keep a balance to get better credit.

Absolutely false.”

10. Nope!

“”Lease a car, don’t buy used.”

Leased car price -> $25,000

My used car I drove for multiple years without maintenance (aside from tires/oil) -> $3,000.”

11. Wow…

“I have two co-workers that are educated, but lack any common sense with finances.

Both refused to save for retirement even though the are 50 years old. Their belief is that they will live off the government e.g. food stamps, Medi-Cal and low income housing.

About every two years, they both buy brand new cars and charge everything on their credit cards. Both make well over $90,000 per year.”

12. Don’t listen to him.

““Don’t be a programmer. Your job will get outsourced to India.” – my dad when I told him excitedly as a teenager that I tried coding and loved it.

I ignored his advice and I’m now a programmer and still love it. Oh, and the pay is great too. I am now making a lot more than he ever did.”

13. No joke.

“To buy a house when they were giving them out like candy several years ago.

I had bad credit and an unstable job, I said no way. So many people were pressuring me. All those people lost their houses.

Those balloon payments are no joke.”

Yikes…now it’s your turn…

In the comments, tell us about the worst financial advice that you’ve ever received.

We look forward to hearing from you. Thanks!