Five Money Rules To Be Avoided According To Study

Home/ADVICE/Personal Finance/Five Money Rules To Be Avoided According To Study

By Casey B. Miller | Jun 27, 2011 | Updated: Aug 22, 2019

Table of Contents

A recent study into so called money rules has shown that while some of the things we accept as fact are true, many of them should be avoided.

Green Path Deb solutions have offered advice about the five rules that should be broken.

We accept so many financial rules as fact, but a recent study shows that abiding by these so called rules could actually be damaging us financially. While some of these money rules can make sense, many others should not be given a second thought according to Bill Druliner, financial counselor and group manager for GreenPath Debt Solutions. Druliner said:

A lot of times there is that kernel of truth in there, or it’s true in some situations and not at all in others,

There are five financial rules which consumers should definitely consider breaking:

1. Pay off Your Mortgage as Soon as You Can

Sometimes paying off your mortgage early may well be true but at other times it is not such a good idea. The interest rate you are paying can have a huge impact. If you have a fairly low interest rate on your mortgage then it probably isn’t worth paying it off earlier than necessary. It is also important to remember that paying extra to your mortgage is not going to reduce monthly payments.

2. Don’t Charge If You Can Pay Cash

This is not necessarily true if you stand to benefit from using a credit card. If you have a rewards or cash back card, charge as much as you can, then pay off the bill in full at the end of the month to avoid interest.

3. College Kids Need to Build Credit to Get A Job

Building credit can be important for a variety of reasons, but employment is not one of them. In reality, employers are more concerned with your ability to perform the job well than they are about your credit score.

4. There’s A Set Percentage You Should Spend On Items (Home, Card, Food, Entertainment)

This so called rule assumes that everyone has the same needs. How much you spend on various areas of your life will depend on what your goals are and what is important to you.

5. To Build Credit You Have to Carry a Balance

This one is totally wrong, but it’s the one heard most frequently. Getting a secured credit card can help to establish or rebuild credit by allowing you to build a record of good payment behaviors. Carrying a balance every month is actually bad for your credit score. It is much better to pay the balance off in full each month.

0 Reviews

Write a Review

2019-08-22T17:38:25+00:00

Card of the Year

The Card of the Year 2019

ABOC Platinum Rewards Credit Card

News Cardholder Offer:

$150 Statement Credit

Card Most Attractive Features:

Bonus points , Intro rates , Late Payment Will Not Raise Your APR , No annual fee

at Other Issuers secure site

ABOC Platinum Rewards Credit Card

Things to Know About this Credit Card

  • 0% Intro APR on Purchases and Balance Transfers for 12 months; after that, the variable APR will be 14.40% to 24.40%, based on your creditworthiness
  • Earn $150 Statement Credit after you spend $1,200 on purchases within the first 90 days from account opening
  • Earn 5x rewards on up to $1,500 in combined purchases each quarter in popular categories such as dining, groceries, travel, and automotive
  • No upper limit on the points you can accumulate, and since points never expire, you can save up for a big award!
  • Earn Points on Every Purchase! It's simple: $1 = 1 Point
  • No Annual Fee or Foreign Transaction Fee
  • Select Your Rewards Your Way
  • No Foreign Transaction Fee

Intro APR

0%*

Intro APR Period

12 months*

Regular APR

14.40% -24.40% (Variable)*

Grace Period

25 days*

Annual Fee

$0*

Credit Needed

Good*

at Other Issuers secure site



Card Offers to Consider

2019-08-22T17:38:25+00:00
Newsletter

Stay up to date with our latest news and products.

Advertiser Disclosure

Market Pro Secure® is an independent payment card comparison service supported by advertisers, a complete list of which can be seen in our Editorial Guidelines. Even though some of these advertisers are financial product providers and credit card issuers, our paid partnerships don't affect card ratings or the Best Card Picks on our website. We don't post any content that is provided or commissioned by any of our partners. However, our paid partnerships may affect how and where products appear on our site, including the order in which they are presented within listing categories. This order may also be affected by our website rules, as well as the likelihood of the applicant’s credit approval. We can't offer any warranty for the accuracy of the credit card information we share on our website, even though we do our best to keep the Terms and Conditions, rates, and other credit card details up-to-date. For more accurate information, click "APPLY NOW" to get transferred to the credit card issuer's official website. Market Pro Secure® doesn't include all available payment cards in the marketplace.

ADVERTISER DISCLOSURE. Market Pro Secure® is an independent payment card comparison service supported by advertisers, a complete list of which can be seen in our Editorial Guidelines. Even though some of these advertisers are financial product providers and credit card issuers, our paid partnerships don’t affect card ratings or the Best Card Picks on our website. We don't post any content that is provided or commissioned by any of our partners. However, our paid partnerships may affect how and where products appear on our site, including the order in which they are presented within listing categories. This order may also be affected by our website rules, as well as the likelihood of the applicant’s credit approval. We can't offer any warranty for the accuracy of the credit card information we share on our website, even though we do our best to keep the Terms and Conditions, rates, and other credit card details up-to-date. For more accurate information, click "APPLY NOW" to get transferred to the credit card issuer's official website. Market Pro Secure® doesn't include all available payment cards in the marketplace.

EDITORIAL DISCLOSURE. Market Pro Secure® doesn't post any content that is provided or commissioned by our advertisers, the majority of which are financial product providers and credit card issuers whose offers we feature on our website. The entirety of our editorial content – including any opinions, analyses, reviews, and evaluations – belongs to the author alone, and has not been reviewed, approved, or otherwise endorsed by our advertisers.