5 Terrible Pieces of Financial Advice That Will Cost You Money

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[The following is a partial transcript of this episode of The Scott Alan Turner Show. Listen to the full episode to hear this story, listener questions, money hacks, and inspiring stories of people that are changing their financial lives. Subscribe to the free podcast on iTunes or Google Play]

Some things people are doing with their money make me want to throw my cat at them.

Today I’m starting the show with financial advice that will cost you big money.

Katie once joked with me and said ‘if you ever do this, I will beat you with Riker’. Riker is our cat. You know she wasn’t being serious, but I still remember it.

These are things I’ve been talking about for years and years. And if you break one of these rules, you’re going to get the cat thrown at you.

1 Any investment with guaranteed, high, consistent returns.

Yes, the stock market averages 10% a year over time. You know that already. But the lure of easy money with guaranteed money – even just 5%, 6%, 7%. Doesn’t exist. It doesn’t. Not over a period of decades. Not over the time it takes to save for college. Not over a retirement. Avoid the cat on those scams.

2 Borrowing against your house or retirement plans.

Trading equity in a home, or risking money you’ve worked so hard for, for crazy stuff, is just that. Plain crazy. Taking out a HELOC to pay for credit cards. That’s risking a home to pay the credit card company. Using a 401(k) to speculate on bitcoin. That’s bit-crazy. Falling for that myth that ‘you’re borrowing your own money’ to start a business. You can start a business without putting your future at risk. Borrow from the bank for smart reasons and the cats won’t have to eat the cheap cat food.

3. Time shares

• Anything where you have to sit through a presentation and they offer you a free meal. Don’t do it!
• Anything where someone knocks on your door. Don’t answer.
• Anything where a person walks up to you at the mall and tells you how smart, stylish, or confident you look. Don’t listen to them.

Think about why are there time shares for sale on eBay for $1? They aren’t.

Here was just one I found: The WYNDHAM BALI HAI HAWAII TIMESHARE 2 BEDROOM. It had $1,100 in closing costs. And $1200 in maintenance fees each year it’s used. $1,100 plus $1,200 does not equal $1.

Listen if you have a time share and love it, awesome. My question to you is, if you had to go back in time and could get all your money back, would you buy it again? Or would you use the money each year to go different places and stay at an Airbnb. One that might allow cats.

4 Anything having to do with your family

That includes starting a business. Investing in a business. Co-signing on a loan. If a person doesn’t have the money to do something, they also don’t have the money to pay you back. If a bank won’t lend someone money, there is a good reason for that. The chances of them paying you back are pretty low. Why run the risk of ruining the relationship? Ruining your finances? Ruining your credit score? Don’t be the bank. It’s not really helping someone. You want to help someone, text them a funny cat picture.

5 Taking money advice from broke people

This includes people that have no qualifications. People with ‘insider secrets’. People who believe the lottery is the only way out. People who are driving a new $30,000 cars and making $30,000 a year. That’s a person you need to get to listen to The Scott Alan Turner Show. They are smart people, just like you are. They just haven’t learned this stuff yet. Or had that ‘ah-ha’ moment where the light bulb went off. Send them one of my cat pictures. That’s an easy approach.

So today might be a good day to think about some of that bad advice. You might discover

lost money, regrets, anger.

You can flip it around and focus on the knowledge you’ve gained, knowing you’ve avoided even bigger mistakes, and the positive outcomes.

When you start doing that you’ll

• get and stay out of debt faster
• build your wealth faster
• change your life faster

And you’ll avoid getting a cat thrown at you.

---

I laughed so hard, I cried.

email #1:

There are 4 main scenarios that could play themselves out in the coming months:
1. the market could go up
2. the market could go down
3. the market could go down and then up
4. the market could go up and then down.

We have studied our strategy going back to the 1920s, and all four scenarios have happened in the past.

MOOOOO!!!

Master of the obvious.

This is like the meteorologist on the six o’clock news coming out and saying. My friends, there are 4 mains things that could happen tomorrow in Arizona.

It might be a sunny day
It might be a cloudy day
It might start out sunny, and get a little cloudy
It might start out cloudy, and get a little sunny.

I’ve studied the weather for the past 50 million years, and all four weather forecasts have happened in the past.

MOOOOO!!!!

Send me your money, send me your money! Bow down to your financial gawd and send me your money.

You know hun, that Turner guy, he’s studied this stuff since1929. And he knows what he’s talking about.

“There are two kinds of forecasters: those who don’t know, and those who don’t know they don’t know.” John Kenneth Galbraith

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