7 Things you Should Never do in Finance

In this video, I’m going to tell you 7 things you never want to do when it comes to finance. ( and might even include some bonus ones so stick around and we will see)

1. Never invest with a bank

Problems with banks
– Limited investment options
– Minimums for investing ( chase $500)
– Fractional shares options ( don’t offer any)
– Fees: chase has a .35% advisory fee
– Bias information ( if they are not a fiduciary, but that didn’t turn out allegedly to the suit)

Tip: Big banks are great for low rate longs and because they are bigger are less likely to fail.

2. Never ask an insurance salesman if term or whole life insurance is best for you
– Insurance agents get paid big commission and they make a lot of money when they sell you an expense products
– Term life insurance is usually 10x less expensive than whole life insurance
– And when the insurance agent sells you on the whole life, they usually get 80-100% of all the money you paid that year and 15-25% of your premiums for your entire life. ( so yes they are very biased)

Tip: If I got 25 of you until you died, I would be very motivated to sell you on it.

3. Never ask a car salesman if you should buy a new car a used car
– You’ll get a funky answer like
– Used cars cool but I prefer new because they are more reliable
– But in reality, there are a ton of certified used cars that are very reliable and half the price.

4. Never ask a bank how much you can afford on a mortgage
– Do your own math at home before you go to the bank
– They will a lot of money as long as your monthly payments are less than 47-50%
– So basically you’ll give them have your income for the house you want

Guess what:
– When you buy a house for the first time and you finance it
– The first 5-10 years you’ll pay more towards interest than you will towards the actual loan
– So they have a lot to gain from you

Ps: don’t ask the real estate agent if you should go over budget, because the house is fancy. They make a bigger commission, stick to your budget.

5. Never ask a credit card company if its okay to pay the minimum or carry a balance to build credit
– 99.99% of them are going to tell you yes you can do it, no problem, no fees at all
– And the .01 that tell you no don’t do that, it’s going to cost you money in interest, are going to get fired because they are on a recorded line.

The truth is:
– Carrying a balance does not help your credit score
– It helps the companies make more money from you

What to do:
– Get 2-3 credit cards and put some small bills on them
– Pay then on auto-pay in full each month
– And cut the physical cards, you’ll build credit and not go into debt.

6. Be careful asking someone with no experience on why he buys so much tesla stock or whatever stock
– If their response is, I like the company and it’s going to be around forever
– But they cant tell you the companies intrinsic value or future growth potential
– Just smile and walkway

Here why;
– That’s speculation they are investing just in the company name
– The best way to learn how to invest is read about invest like “ warren buffet, Benjamin Graham, John C bogle, and lastly Charlie Munger”

Why: all these guys have long term success and a track record of over 30-50 years.

7. Never ask a bank if the interest rates are worth leaving money in your account and if you should get a CD ( locking in your money)

Here is the truth:
– The bank cant predict or control fed rates, which influenced your savings account interest rates
– But they do want to make more money by having your money locked in
– Focus on investing and growing your money, not on a 1 high yield account when inflation is 2-3% and you’ll literally losing money every year.

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*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I’m an Accountant but I’m not your Accountant, always review information with your Accountant/CPA and your Financial Advisor.

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