A few weeks ago when I wrote the post What’s the Best Financial Advice You Ever Received?, my husband told me that it would be helpful for people to share the worst financial advice too. I agreed, but thought it would be easier to keep the two separate. Thanks to all of you who shared the Best Financial Advice You Ever Received, now I’d like to hear about the Worst Financial Advice You Ever Received.
When I think about the Worst Financial Advice I ever received, I would have to sum it up into — any get rich quick scheme. You know the ones where you put in a little money and then you instantly become rich overnight. I’ve been approached with pyramid schemes, e-commerce business opportunities, hot stock tips and other seemingly enticing investment offers.
The common things with these get rich quick schemes or scams (in some cases):
- They usually sound too good to be true, which is the first red flag.
- Sometimes it feels like they are pressuring you to make a decision and make it quick. In other words, you have to do it now and there is no such thing as tomorrow.
- They do not like answering too many questions.
I simply AVOID these get rich quick schemes/scams with a friendly – No thanks. If they get too pushy about it, then I follow it up with a firm NO! 😀
“The ability to say “no” is a tremendous advantage for an investor.”
– Warren Buffett
FTC.gov offers some great tips to help consumers avoid these types of investment schemes. Click here to view them.
What’s the Worst Financial Advice You Ever Received? Please share it using the comments. I’d love to hear from you. 🙂