The Worst Savings Advice I See on Social Media (and What to Do Instead)
Social media is a goldmine of advice, but let’s be honest—half of it belongs in the trash. Especially when it comes to money. One minute, you’re watching a cat video, and the next, some self-proclaimed financial guru is telling you that skipping your morning latte will make you a millionaire. (Spoiler: It won’t.)
If you’ve ever taken financial advice from TikTok or Instagram, you might want to double-check what you’ve been told. Let’s dive into the absolute worst savings advice I see online—and what you should do instead.
Payday Loans Are a Quick Fix for Emergencies
The Financial Benefit: None. These loans trap you in a cycle of debt faster than you can say “outrageous interest rates.”
Smart Money Move: Instead of relying on payday loans, build an emergency fund with at least three to six months of expenses. Even starting with a few hundred dollars can keep you from needing these financial nightmares.
Imagine This: You borrow $500 from a payday lender, thinking you’ll pay it back next paycheck. But with sky-high interest rates, you’re rolling it over again…and again…until you’ve paid more in fees than you originally borrowed. Ouch.
Renting Is Throwing Money Away
The Financial Benefit: Renting can actually be the smarter financial choice depending on your situation. Buying isn’t always the best move.
Smart Money Move: If you don’t have a solid down payment, stable job, and long-term plans, renting can give you flexibility and financial freedom while you save.
Imagine This: You rush into buying a house because “it’s what responsible adults do,” only to realize that property taxes, repairs, and HOA fees are draining your savings faster than expected. Now you’re house-poor, stuck with an expensive asset you regret. Renting doesn’t sound so bad now, huh?
Always Pay Off Your Mortgage as Fast as Possible
The Financial Benefit: Sounds great in theory, but this advice ignores interest rates and opportunity cost.
Smart Money Move: If your mortgage has a low interest rate, you might be better off investing extra money in retirement accounts or the stock market instead of rushing to pay it off.
Imagine This: You aggressively pay down your mortgage, but then an emergency strikes. Your cash is tied up in your home, and now you have to take out a high-interest loan just to cover unexpected costs. Not ideal.
Put Everything on a Credit Card for the Points
The Financial Benefit: If you can pay it off in full, sure. But most people don’t.
Smart Money Move: Use credit cards responsibly—only charge what you can afford to pay off each month. Rewards aren’t worth it if you’re drowning in interest.
Imagine This: You’re racking up points like a pro, feeling like a financial genius—until you realize you’ve accumulated thousands in debt and are only making minimum payments. Now those “free” flights are costing you way more than expected.
File for Bankruptcy to Erase All Your Debt
The Financial Benefit: It’s not the easy reset button that people think it is.
Smart Money Move: Bankruptcy should be a last resort. Try negotiating with creditors, consolidating debt, or increasing income streams before taking this route.
Imagine This: You declare bankruptcy thinking it’ll wipe the slate clean, but now your credit is in the gutter for years, making it nearly impossible to get a loan, rent an apartment, or even land certain jobs. Not the fresh start you hoped for.
You Don’t Need an Emergency Fund If You Have a Credit Card
The Financial Benefit: False. A credit card is not a safety net—it’s a debt trap.
Smart Money Move: Aim for an emergency fund of at least three to six months of expenses in a high-yield savings account.
Imagine This: Your car breaks down, and you charge the $2,000 repair to your credit card. Without savings, you can only make minimum payments. Months later, you’ve paid way more in interest than the repair originally cost. A savings cushion would’ve saved you big time.
Investing Is Only for Rich People
The Financial Benefit: Nope. The earlier you start, the better. Even small amounts add up over time.
Smart Money Move: Start investing ASAP. Apps like Acorns or Fidelity make it easy to begin with just a few bucks.
Imagine This: You think you need thousands to invest, so you put it off for years. Meanwhile, someone else started investing just $50 a month in their 20s—and now they have a six-figure portfolio. Time is your best friend when it comes to investing.
Parting Advice
Not all financial advice is created equal, especially on social media. If something sounds too good to be true, it probably is. Instead of blindly following influencers who promise instant wealth, focus on real financial literacy: budgeting, saving, investing, and living within your means.
The best money moves aren’t flashy, but they work. And that’s what really counts.