Bad financial advice can come from the biggest pop finance guru on television, to your next door neighbor's husband to just mis-hearing a banking professional. Crummy advisement is out there, and sometimes it seems to run rampant. Though, it is first and foremost most important to make sure that you take responsibility, do your due diligence to ensure that you recognize cruddy advisement before implementing it in your own life.
While it is possible to find bad financial advice the world over, it is important to also realize that what works for one will not work for all individuals. That is sometimes the main problem with popular financial gurus whose main goal is to sell a load of books, to get renewed for another season of radio or television. It is not to say it is bad financial advice, just bad if you decide to blindly employ it.
For you, maybe it is really that the advice is not bad financial advice, but it is a matter of individual circumstance. For instance, if you have followed conventional advice, and it did not work for you, then that is bad financial advice for you. Likewise, if you were able to do better on your own, with advice that is to the contrary of conventional advice, then good for you. That would be an example of bad financial advice working for you and in your favor.
There are different philosophies, which can help you recover from following advice and realizing it is bad financial advice only after you have employed it. There are people who do not save for retirement as normal people do, through employers. Actually, they are more along the philosophy that it ties up your money, creating a cash flow crunch that can be devastating if you need money for more promising investments.
Investing your money smartly to cover the costs of parenthood, college, your 401k and Roth IRA, is the best financial advice. Yet, sometimes it is a better idea to hold off on diverting any money from your present financial obligations, such as day-to-day bill pay. And, in the world of financial advisement, you might be made to feel guilty or wrong for going against the saving for a rainy day program of thought.
Bad financial advisement can also happen when you are being mislead by an unscrupulous individual. That is, if you let it happen. It is important that any advisement to which you listen comes from a credentialed, in-good-standing financial professional, who has no corrective actions being taken against them.
Therefore, it is always most important that you take responsibility for your very own money, to avoid bad planning advisement. It is always up to your sense and sensibility where you put your hard earned money. If you make a mistake and lose money, you are definitely not the first, and for sure not the last. It can be a part of life, and it can be the best way to learn something about making prudent investments. It can solidify this learning in your mind so that you never make the same mistake again.
When you are ready to venture out and look at your money once again, it is important to once again decide upon your new monetary priorities. This will help you revise your old plan (that did not work) and devise a new plan. The goal is to find a plan that works better for you than the old one. If you are still having trouble moving forward, it is good to look at the link between your emotional experience with money and your present problem moving forward.
It could be that you were burned badly enough monetarily speaking that you are stoic with anxiety. That happens. A good, healthier way to replace your present view of money is to remember that it is not something unmoving and solid. Money is fluid. It comes and goes, and comes back again much like a tide. If you get too attached it hurts when you have to say good bye to parts of your money.
When you do recover from any monetary blows to your plans, then you can finally try righting your ship. If it was too large of a debt load, an unexpected long term job layoff, or just plain not saving enough, you need to be honest with yourself.
Bad financial advice is often a matter of perspective. If you have found yourself losing money from bad financial advice, it is ok. You are not alone. And, what occurred can be corrected. It might make life uncomfortable, feel unfair, but it goes on, and money will come back to you once again in the near future.
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