What do you consider to be good financial advice, and how can you tell?

Jake Sluder

I believe any way of making money with little work is financial advice. When it’s good you’ll have search each possible companies or products to find the ones that fit your specific need. The unit price, the price of a single unit of a product (ounces or liters), can help you decide on what to buy, but if the advice is to always buy the cheapest unit price than that’s bad in some cases when you buy a lot more than you need. One thing you should definitely have is a budget, which is a drawn out plan where you plan where you spend your income (money), where you have a certain percentage of it is going into your interest earning savings account. This good advice because it’s a low risk account where you’re paid for loaning the government money. Other accounts advice can vary because of high risk factors, such as a stock, so you should have diversification where you invest about an even amount of some of your money in multiple stocks to reduce risk. You might need to follow this advice more carefully because of liquidation, which is event a businesses closes down. Finally, you can open bonds where as it’s one of the safest investments due to signing contracts with the corporations in return you get collateral for loaning them money. Some bad financial advice would be to use checks, borrowing loan services, and check cashing services because these businesses charge high fees and you can easily lose your money or checks. These businesses also don’t insure your money in the case of a robbery. You should use both your debit and credit cards if you have good credit because you’ll need to pay for things directly or at the end of the month in different cases. You shouldn’t, however, buy to many things with your debit card because at the end of the month you might have trouble paying or your assets (goods) will be reposed. This advice will help you to become familiar with interest (the price of using someone’s money), which can be good or bad depending on the situation.

What do you have to say about that?