Ignore This Financial Advice From Parents
During the coronavirus, there are a few tips for money that no longer apply. Our parents’ generation may have adopted the rules of thumb with good intentions, but some of these gems of wisdom may not be up to par with the challenges of the modern era, so here are some general rules you might want to break.
Pay off debts as quickly as possible
Amid a severe pandemic, many Americans are still struggling to cope with reduced working hours and unemployment. Whether you’re struggling to pay rent , cover student loans, or put food on the table , you should prioritize your family’s pressing needs. Once your income is stable again and you can afford the essentials, you can go back to your previous debt plans.
The stock market is like gambling
After some falls in February and March, pundits were quick to ascertain the end of the 11-year bull market before the stock market recovered in record time . While volatility can scare those approaching retirement, there are plenty of reasons to be optimistic, especially if you have a long investment schedule ahead of you. Although the media obsesses about stock market fluctuations, history shows an upward trajectory . There have been several big drops over the past hundred years, but the numbers are still rising. If you refrain from investing, you could be missing out on many years of complex growth.
Renting is throwing money away
As mortgage rates continue to plummet , you may be feeling more pressure than ever to buy the American Dream. But the truth is, home ownership can be the wrong move, especially if you have to stretch your family budget to make it happen. Getting higher pay, even if you qualify, can be risky in a volatile economy.
Despite what everyone says, your main home is not an investment. As median home prices are near record highs , there is no guarantee that their values will continue to rise. And depending on the age of your home, you could spend a lot more on repairs and maintenance than you expect.
Of course, there are many reasons for buying a home – like putting down roots, having more control over your living space, and more. But let’s ditch the old adage that renting is a waste of money.