Why bad advice is like the soda ban
A couple of years ago, I wrote The Santa Factor that was read by thousands of people like you! This book covered 7 lies that keep people from getting wealthy. Why do I bring this up?
I was reading about how ridiculous the San Francisco Anti-obesity law, the “soda ban” is. Too often, people believe things that simply aren’t true and worse yet, they make foolish decisions based on the misinformation!
Here is a sample:
“Gavin Newsom’s executive order forbidding soda machines on city property from hawking sugary soda is interesting for three reasons. One, the next photographer to snap a shot of Baby Montana with a soda is famous. Two, it warrants mentioning that Newsom doesn’t seem to think city workers are up to making decisions on what they should drink — when they are up to making decisions on, you know, running our city. And, third, a nutritionist tell us that, while Newsom is pitching this as an anti-obesity move, it clearly fails in that measure.”
I would agree. Why not ban all sugar? It is not a scalable solution and by the way the soda ain’t the problem! Overeating and a lack of exercise are! Why not arrest people who aren’t following those rules?
It’s the same way with our finances. Too often we believe lies. We don’t know they’re lies, we just believe misinformation because so many people have told us it was the “truth”. Here are a few that I’m talking about:
1) My success comes at the price of others
2) You can have principles or profits, not both
3) My retirement plan at work is the best place to invest
4) Money is the root of all evil
5) Paying off my home mortgage is always wise
6) Mutual funds and stocks will make me rich.
7) Buy and hold investing is the way to go
While some of these may have some truth to them, they do not, nor should they be applied to all people. Yet, people believe this “generic advice” applies to them and they take it. Later, they find out what a mistake they made. Instead, have a professional coach or advisor double check each financial step you make! It could save you thousands or even millions of dollars over your lifetime!
What other misguided financial advice have you taken? What did I miss? Should San Fran ban soda?