This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
“If You Have 1 Year Of Expenses, You Can Walk Away From Your Job”
Filtering through bad financial advice
Woah.
Really?
There is no sound logic in that – especially if you’re off track with your investment goals and in debt.
A year’s worth of expenses is lovely to have, but it doesn’t excuse you from financial responsibilities or eliminate your need for financial resources in the future.
One year’s worth of expenses buys you twelve months. That’s it – unless you significantly decrease your expense load.
It can offer you a temporary break if you lose your job or your other finances are in a good spot, but it’s not a lottery win.
Other financial advice we’re probably used to hearing includes: buy a home, take out student loans, it’s okay to finance a new car, or if you can successfully manage your credit card payments keep on charging.
All of this is terrible advice that can get you into big trouble if you don’t take a moment to question it and choose another path.
Use Caution For All Financial Advice
We must be cautious of the advice we intake from others – even those reading this article.
Words are simply information, but we have to cipher through them. A woman told me investing is the equivalent of gambling, and she will not partake. If I was impressionable, I might consume her negative attitude towards investing and stop investing myself.
Thankfully, I’ve been investing for so long that I know it always pays off. But what if I had never invested before? If I hadn’t, I should do my due diligence and learned more about financial investing.
However, I could also utilize logic.
The more you invest in something, the bigger the return – whether positive or negative.
The more you invest in your health, the healthier you become.
The more you invest in learning a craft, the more skilled you become.
The more time you invest in a healthy relationship, the more invaluable you become to one another.
Investments always yield a return – whether monetary or non-monetary.
Even a car is an investment. When you purchase a new car, you will immediately lose money because cars are one of the fastest-depreciating assets you can buy.
Cars are some people’s favorite investment to make because they don’t know how to filter through bad financial advice.
Just because you can afford to finance a car on paper doesn’t mean you should. There are likely more important things you can do with your money to increase your net worth.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.