In personal finance, everyone has their own advice they want you to take. Some say that paying off student loans is the most important thing after college, but others say that debt is useful. Below are some of the most common controversial advice or decisions.
Now, many people will tell you that saving money is important and that you should do it. But what they don’t tell you is how. Some argue that you should save your money after you pay all your expenses, but then the dissenters say that you should save your money by categorizing it as an expense. Which opinion is right? It depends. For people like penny pinchers, or just prefer to live frugally, they tend to save every last cent that they can. But paying yourself first by saving consistently may be a better strategy towards a saving goal.
You likely know that your parents or other adults use credit cards to pay bills or use them to buy groceries. You are also likely planning to get your own once you get old enough, which makes a lot of sense. But, some people may think that using a credit card is bad because technically you have debt until you pay off your balance at the end of each month. Using a credit card does have its benefits. For example, you can earn rewards and build up your credit as long as you pay off your balance consistently and responsibly.
Buying a house is a hot topic. Everyone wants to own their house, probably so they don’t have to deal with angry landlords. Owning a house definitely has its rewards, such as not having to ask for permission just to fix a broken refrigerator. But it isn’t always the smartest decision financially. Renting can take a burden off your shoulders because usually, the landlords will pay for repairs that you didn’t cause but just caused by other reasons.
In the end, don’t let anyone persuade you that their idea is better. Do your own research first, and learn from your mistakes. Every choice has its pros and cons, it just depends on if the pros outweigh the cons.
Written by Allie Chang