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The 5 Worst Financial Advice You’ll Ever Hear Then Some Good Money Tips

Angry woman to have gotten 5 worst financial advice from someone

If you’re looking for advice on how to save money, you’ll probably get a lot of conflicting information. Your parents may tell you one thing, your friends may tell you another, and your favourite internet blog may tell you something completely different.

So, who do you listen to? Who do you trust?

The answer is: unfortunately, there is no easy answer.

However, there are some pieces of financial advice that are just plain bad. In this blog post, we’ll take a look at the five worst pieces of financial advice that you’ll ever hear.

By the time you’re finished reading, you’ll be able to spot bad advice a mile away and how to do smart decisions!

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1. "You don't need to save for retirement; Social Security will take care of everything."

Social Security benefits, September 2022

This is one of the most common pieces of worst financial advice that people receive for their finances. While it’s true that Social Security will provide some financial assistance in retirement, it’s not nearly enough to live on and you should not be relying solely on that.

“In fact, according to the Social Security Administration, the average monthly benefit is only $1,230 (as of September 2022).”

Source image and quote: SSA

That’s barely enough to cover basic living expenses, let alone enjoy a comfortable retirement and right off the bat it sounds like a bad idea.

If you want to retire comfortably and have some sort of financial independence, you’ll need to supplement your Social Security benefits with savings from a 401(k) or IRA.


How Much Will I Get in Social Security?

How much you receive from Social Security depends on a few different factors, including your work history and earnings.

Your work history is the most important factor in determining how much you’ll receive from Social Security. The program looks at your 35 highest-earning years and uses that information to calculate your benefits. So, if you have a long career, you’re likely to receive higher benefits than someone with a shorter work history.

Your earnings also play a role in determining your benefits. The program uses a formula to calculate your benefits, and that formula takes into account your average indexed monthly money earnings. This means that if you have higher earnings, you’re likely to receive higher benefits and a higher retirement plan.

Finally, the age at which you start receiving benefits also plays a role in how much money you’ll receive. If you start receiving benefits at your full retirement age, you’ll receive the full amount that you’re entitled to based on your work history and earnings.

However, if you start receiving benefits before or after your full retirement age, your benefits will be reduced or increased, respectively.

So, how much can you expect to receive from Social Security?

The answer depends on a number of factors, but you can get an estimate by using the program’s online calculator.


2. “All debt is bad debt.”

Another common piece of bad financial advice is that all debt is bad debt. This simply isn’t true.

While it’s important to avoid higher interest charges on credit cards and loans, there are some types of debt that can actually be beneficial.

For example, student loans and mortgages typically have low-interest rates and can help you achieve important financial goals (like buying a house, a new car or better yet, getting a degree).

It’s essential that you consider each decision carefully and only borrow what you can afford to pay back. In addition, be certain that the new car is a worthwhile purchase.

While a car is typically not an investment, there are occupations in which you have no other option.


How To Get Low-Interest Loans or Credit Cards?

Do your research

When you’re looking for the lowest and best-interest loans and credit cards, it’s important to do your research. There are a lot of different options out there, and it can be difficult to know which one is right for you.

The best way to find the right loan or credit card is to compare rates and terms from multiple lenders.

You can also use a tool like Credible (non-affiliate link) to compare rates and terms from multiple lenders at once. These people can give you good advice and help you find the right path in this jungle.

 Consider your options

Once you’ve done your research and know what you’re looking for, it’s time to start considering your options. If you’re looking for the lowest interest rate possible, a fixed-rate loan may be the best option for you.

If you’re looking for a lower monthly payment, an adjustable-rate loan may be a better option. There are also many different types of credit cards available, so be sure to consider all of your options before making a decision.

Compare rates and terms

Once you’ve considered all of your options, it’s time to start comparing rates and terms from multiple lenders.

This is where a tool like Credible can be really helpful. Credible allows you to compare rates and terms from multiple lenders at once, so you can easily find the lowest and best-interest loan or credit card for your needs.

Apply for a loan or credit card

Once you’ve found the right loan or credit card, it’s time to apply! Be sure to fill out all of the required information on the application accurately and completely.

Once you’ve submitted your application, all that’s left is to wait for approval!


3. “You should never carry cash because it’s too easy to lose track of.”

Whoever came up with this one clearly doesn’t understand how cash works. Carrying cash is actually a great way to stay on top of your spending because it’s a physical reminder of how much money you have available to spend.

When you use credit or debit cards, it’s easy to forget how much money you’re actually spending since there’s no physical exchange taking place and when you receive your bill at the end of the month, you might not be able to make your minimum payments which might greatly affect your credit score.

If you’re trying to stick to a budget, carrying cash can be a helpful tool.

You’ll have more control over your spending

When you use a debit card, you’ll have more control over your spending. This is because you can only spend the money that you have in your account or in your pockets.

With a credit card, it’s easy to spend more than you can afford and end up with a large bill at the end of the month. Debit cards help you avoid this by only allowing you to spend what you have.

You can still use your debit card for emergencies

Some people may think that they need to use a credit card for emergencies, but this is not the case. You can still use your debit card for emergencies; you just need to make sure that you have enough cash left in your account to cover the expense.


4.”You don’t need insurance; it’s just a waste of money.”

This piece of bad financial advice could end up costing you a lot of money if you follow it. Everyone needs insurance—it’s not just a waste of money (although some people do waste money by overbuying insurance).

Just don’t jump on the first company that offers you insurance. It’s like a loan, shop them!

“In 2020, 8.6 percent of people, or 28.0 million, did not have health insurance at any point during the year.”

Source: Census

Whether it’s health insurance, car insurance, or renter’s insurance, having coverage provides peace of mind in case something unexpected happens.

No one wants to be caught without insurance when they need it most!

Insurance is a little bit like shopping for loans, you have to make sure you:

  • do your research
  • know what you are looking for
  • consider your options
  • compare rates and terms
  • apply for it


5.”You don’t need an emergency fund; your credit card will always be there for you.”

Man trying to empty his pîggy bank because no emergency fund

This is perhaps the worst piece of financial advice that anyone could give (or receive). Having a backup fund is absolutely essential—it gives you peace of mind knowing that you have money set aside for unexpected expenses.

And while your credit card may be available in a pinch, using it should always be a last resort since credit card debt can quickly spiral out of control if not paid off promptly.

An emergency fund will help keep your finances afloat when something unexpected happens; a credit card will only dig you deeper into debt.


How To Calculate Your Emergency Fund

If you’re like most people, you probably don’t have much money saved up in case of an emergency.

In fact, according to a recent survey in January 2022, nearly 56% of Americans have less than $1,000 in savings and couldn’t cover in case of an emergency.

Source: CNBC

If you find yourself in this situation, don’t panic! There are steps you can take to get your finances back on track.

One of the first things you should do is calculate how much money you need to have in your emergency fund.

This number will vary depending on your individual circumstances, but a good rule of thumb is to have enough saved up to cover three to six months of living expenses, which also includes:

  • Phone bill
  • Property taxes
  • Bills in general
  • Electricity
  • Etc.


Once you know how much you need to save, you can start working on a plan to reach your goal and save money in your bank account.

If you’re not sure where to start, there are a few online calculators that can help you figure out how much you need to save each month. This site, has a lot of calculators of all sorts money-wise.

Once you have a plan in place, make sure to stick to it! It may take some time and effort, but eventually, you’ll reach your goal and be prepared for anything life throws your way.



When it comes to financial advice, beware! There is a lot of conflicting information out there, and not all of it is good—or even accurate!

In this blog post, we’ve taken a look at the five worst pieces of financial advice that you’ll ever hear and we gave you the best advice on how to make sure you don’t fall into any traps.

Now that you know what to watch out for, you can avoid making costly mistakes with your money!


Most frequent questions and answers

The biggest financial problem is people not being able to save money.

The best piece of financial advice is to start saving early. The sooner you start saving, the more time your money has to grow. Even if you can only save a little bit each month, it will add up over time. Another good piece of advice is to create a budget and stick to it.

Yes, you should start saving for retirement as early as possible. The sooner you start, the more time your money has to grow. If you wait until later in life to start saving, you may not have enough time to reach your goals.

A 401(k) is a type of retirement savings account that offers tax benefits. Employers often offer 401(k) plans to their employees as a way to save for retirement. Employees can choose to have a certain amount of their paycheck automatically deducted and deposited into their 401(k) account.


Twisted Cojones is no financial advisor. Do not take anything in here as financial advice, or finance experts, ever.

Please note that the information in this post is only for educational purposes and entertainment only and should not be used as financial, insurance, legal, accounting or tax advice.

Please do your own research and get your own personal finance expert if you have credit or money issues.

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