People who’ve never struggled for money have some very odd views on how people should handle their finances.
They’ve never had to decide between heating their house or putting food on their table, nor have they ever had to rely on their overdraft at the bank to get through until their next pay cheque. Nevertheless, they seem to think these pieces of financial advice are “helpful” to people who are struggling to make ends meet.
1. Just buy a house to avoid paying rent.
As if it were that simple! This advice completely ignores the huge upfront costs of buying a home, including the deposit, legal fees, and other expenses. Not to mention the ongoing costs of homeownership like maintenance and property taxes. For many people, renting is the only affordable option. When mortgage companies think you can’t afford £500 a month payments even though you’ve been shelling out £1,000 a month on rent, the system is clearly broken.
2. Invest in the stock market to grow your wealth.
While investing can be a good long-term strategy, it’s not always feasible for those living pay cheque to pay cheque. Many people struggle to meet basic needs, let alone have extra money to invest. This “advice” overlooks the reality of financial instability that many face.
3. Cut out your daily coffee to save money.
This classic bit of advice ignores the fact that small luxuries like a daily coffee might be someone’s only treat in an otherwise tight budget. It also assumes that people aren’t already being frugal in other areas of their lives. The problem usually isn’t the coffee; it’s stagnant wages and rising living costs.
4. Start your own business to escape the 9-to-5 grind.
Starting a business requires capital, time, and often a safety net that many don’t have. It’s not a realistic option for everyone, especially those with family responsibilities or financial obligations. Saying this ignores the huge risks and challenges of entrepreneurship.
5. Travel the world to broaden your horizons.
Source: Unsplash While travel can be enriching, it’s a luxury many can’t afford. In reality, people have limited holiday time, family commitments, and there are HUGE costs associated with international travel, especially since the pandemic. For many people, local experiences are the only feasible option for broadening horizons.
6. Work harder and you’ll eventually get rich.
Source: Unsplash This oversimplifies the complex factors that contribute to wealth accumulation, many of which have zero to do with hard work. Many people work incredibly hard in multiple jobs but still struggle to make ends meet. They’ve clearly never heard of systemic inequalities, lack of opportunities, and other barriers that prevent hard work from automatically translating into a huge bank balance.
7. Just move to a cheaper area if you can’t afford where you live.
It’s not easy to just pick up and move house every five minutes. Moving costs money, and cheaper areas often have fewer job opportunities. It also ignores the importance of community, family ties, and support networks that people rely on in their current locations. Not to mention the fact that we have a serious housing crisis in this country, so there aren’t exactly a ton of options out there.
8. Take unpaid internships to get your foot in the door.
Most people don’t have the financial means to work for free. Many people can’t afford to take unpaid positions because they need income to cover living expenses. This perpetuates a system that favours those who already have financial stability.
9. Save 20% of your income for retirement.
While saving for retirement is important, giving this advice is completely disconnected from the reality that many people struggle to save anything at all. High living costs, low wages, and debt repayments often leave little to no room for savings, let alone a substantial 20% of income.
10. Never buy anything on credit.
Source: Unsplash Sorry, but credit can be a necessary and lifesaving tool for many people. Whether it’s for emergencies, building a credit score, or making essential purchases, responsible use of credit can be really helpful during tough times. Not everyone has the luxury of paying for everything upfront.
11. Pursue your passion and the money will follow.
Source: Unsplash While following your passion can lead to fulfilment, it certainly doesn’t guarantee financial success. You can’t ignore the practicalities of earning a living and the fact that not all passions are equally marketable. It can lead to unrealistic expectations and financial strain.
12. Just ask your parents for help if you’re struggling.
Source: Unsplash Not everyone has parents who are willing and able to provide financial support. There are all kinds of different family situations and socioeconomic backgrounds out there, and most of them don’t come complete with a money tree in the backyard. Most people don’t have this safety net to fall back on.
13. Negotiate a higher salary to increase your income.
Source: Unsplash While negotiation is a valuable skill, there are plenty of power imbalances in many workplaces. Not everyone is in a position to negotiate, especially in industries with set pay scales or where jobs are scarce. It also ignores the potential risks of asking for more in precarious employment situations.
14. Buy in bulk to save money.
While buying in bulk can lead to savings, it requires upfront cash that many don’t have. It also assumes people have the storage space for bulk items. For those living pay cheque to pay cheque or in small living spaces, this advice isn’t always practical or helpful in any way.
15. Invest in property to build wealth.
Again, if someone can’t afford to buy their own home, they can’t really invest in property, can they? It also overlooks the risks associated with property investment, such as market fluctuations and maintenance costs. For many, owning one home is challenging enough, let alone investing in additional properties.
16. Just learn to code if you want a high-paying job.
While coding skills are valuable, this completely oversimplifies the job market. Not everyone has an aptitude for coding, and the tech industry is more competitive than you’d think, especially now that AI is becoming more and more capable. It also ignores the time and resources required to learn these skills while potentially working full-time.
17. Don’t waste money on rent, buy a property and rent it out.
Again, most millennials and Gen Zers don’t have the money to get a house for themselves, let alone an extra one to rent out. Plus, even if they did scrape together the money, it ignores the complexities and responsibilities of being a landlord, as well as the initial and ongoing costs associated with property ownership.
18. If you can’t afford something, just make more money.
This overly simplistic advice ignores the complexities of increasing your income. If only it were that simple! Instead, there are plenty of systemic barriers, limited job opportunities, and the fact that many people are already working multiple jobs just to make ends meet. Making more money isn’t always a simple choice or possibility.
