3 Common Money Management Advice You Might Want to Reconsider Following

Money advice is easy to find, but hard to differentiate. With advice coming to us from left, right, and center, how can we make sure that we follow the right ones? Here is some common money management advice that you might want to think twice about.

1. You need to save even more

There is a limit to how much we can save from our monthly income. Although it may seem like a great idea to save up for early retirement, it comes with unwanted baggage. The FIRE (Financial Independence/Retire Early) movement demands a high level of sacrifice as one would need to save at least 70% of their income.

This would require you to make major changes in your daily life, like refraining from eating out and leading a very frugal and controlled life. Furthermore, it is a strict and lofty financial plan that could easily be toppled when money is needed in emergencies. Saving big and retiring early is easier said than done. Being overly frugal could be an added stress to an already fast-passed lifestyle.

Instead of setting difficult goals, set realistic saving goals. This way you can lead a comfortable life later without compromising on the present. You can also start teaching kids about money management for their better and secure future.

2. Always take the higher paying job

A higher-paying job may not be the best fit for you. A lucrative job may be able to raise your income, however, it may not be able to raise your quality of life. There are countless other factors that need to be taken into consideration for the job to be the right match for you.

One is work-life balance. Higher-paying jobs often come with added responsibility, stress, and not to mention, longer hours in the office. When choosing a job, remember to prioritize your health and happiness as well!

3. You must buy property as an investment

It is no longer true that properties are the best investments as prices start to stagnant or even drop. It may take years to pay off your property loan and even after that, a higher price for your property is not guaranteed.

In addition to this, as the size of the house increases, renovation and maintenance fees increase as well. Investing in property is not as good a deal as it once was. Instead, you can look to other types of investment to boost your passive income.