Phil's Personal Finance Tip of the Day:
3 Ways Personal Financial Advisors Mislead You
By Ramit Sethi | Profit Minded – Tue, Feb 26, 2013 8:32 PM EST
Why is all money advice the same? Why do so-called “experts” keep giving us confusing advice that never seems to work?
For example, my favorite chestnut -- “Keep a budget!” -- almost never works. Yet do we question the advice? No. We blame ourselves, instead of realizing that budgets almost never work. (If you want a better way to manage your money, try automating it.)
Your financial life would be tough enough if all you had to sort out was the confusing advice, but when you peek behind the veil, you’ll discover several money secrets that the money pros won’t tell you.
Secret #1: Cutting back on lattes almost never works
How many of us have heard this advice? “If you stop spending money on lattes, in 30 years, you could have $90,000 saved!” It sounds logical -- but it doesn’t work. If it did, we all would have cut back and we’d dutifully be stuffing our bank accounts with $3 every day. Here’s why saving money on lattes is futile:
1. We love our morning coffee. It’s not just the caffeine, it’s the ritual of treating ourselves.
2. Saving $3/day is not really that much -- especially when we acknowledge that we would probably spend that money elsewhere, not invest it (like the “experts” assume we would).
Inspirational Quotes@Inspire_Us from Twitter:
One important key to success is self-confidence. An important key to self-confidence is preparation. - Arthur Ashe
Hi my name is Philip J. Miano and I am the founder of PJM Personal Finance and Productivity Coaching specializing in Budgeting, Debt Reduction, Bank Reconciliations, Goal Setting, Time Management, and Organizational skills. Please visit my website: http://pjmcoaching.com
