5 Pieces of Dumb Financial Advice That Most People Believe

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When it comes to money, everyone likes to put in their two cents.

Oh, you should definitely buy and not rent. Stay away from credit cards; they’re evil. Why are you so worried about your credit score? It doesn’t matter.

There’s a lot of — quite frankly — dumb advice floating around out there, and it can be difficult to figure out what’s up and what’s down.

Well, we’re here to set the record straight. Here’s all the dumb money advice out there — and what you should do instead.

Dumb Advice #1: You Should Get 3 Auto Insurance Quotes

People love to tell you to shop around. “You should be getting three different quotes to get the best price on car insurance,” they say.

Sure, this sounds like good advice. Here’s why it’s wrong: Comparing only three companies isn’t nearly enough. We suggest comparing 40. But who has time for that?

A company called Savvy will do it for you for free. It gets people an average of $826 back in their bank accounts a year — and you’ll get the same coverage you already have.

It doesn’t matter when you last renewed; you can get a check from your old company for the time left on your previous policy. (Read: They probably owe you money.)

You don’t have to make any calls or fill out any forms. It takes two minutes to see how much Savvy can put back in your pocket.

And the best part? Because we’re driving less, some insurers are slashing prices this month.

Dumb Advice #2: Use a Rewards Credit Card

Here’s the deal: If you’re not using Aspiration’s debit card, you’re missing out on extra cash. And who doesn’t want extra cash?

Yep. A debit card called Aspiration gives you up to a 10% back every time you swipe. How much does your current bank offer you?

Need to buy groceries? Extra cash.

Need to fill up the tank? Bam. Even more extra cash.

You were going to buy these things anyway — why not get this extra money in the process? Do yourself a favor and deposit $100 into an Aspiration account today so you can start taking advantage.

To get started, enter your email address here, and link your bank account to see how much extra cash you can get with your free Aspiration account. And don’t worry. Your money is FDIC insured and under a military-grade encryption. That’s nerd talk for “this is totally safe.”

Dumb Advice #3: You Need to Save $1,000,000,000,000,000 Before You Die

All your life, people have been telling you to save. Save for emergencies. Save for the future. Save for your family. At that rate, you’re gonna need a gazillion dollars in the bank.

Here’s the thing: You should keep a healthy amount of savings in the bank, but if you want to give your family up to $1 million, use something called term life insurance.

We suggest a company like Fabric. Maybe you’ve considered this before, but thought it was only for rich or older people. But we’re hearing that people are getting it for as little as $14 a month.

And the truth is, this is one of the smartest things you can do with your money right now.

Answer a few quick questions here and finish the form to see how much money you could leave your loved ones — it only takes minutes.

Dumb Advice #4: You Need to Be a Billionaire to Buy an Apartment Building

A neighborhood at sunset.
Getty Images

This year has been a rollercoaster. Historically, though, real-estate investing offers the best long-term returns. (Does the name Rockefeller ring a bell?)

That’s why we like investing with pros like DiversyFund. They’ll help you make long-term investments in apartments and office buildings all over the country  — and you don’t have to be a millionaire. You can get started with only $500.

You can see exactly which properties are included in your portfolios — like a 200-unit apartment complex in Killeen, Texas or a 59-unit building in San Diego. And you don’t have to be the landlord — DiversyFund does all the heavy lifting.

Because they know how to ride out the market’s ups and downs, they’ve historically seen annual returns of 17% to 18%, though they can’t make any promises.

As a partial owner, you make money on rent payments and when property values go up. It takes just a few minutes to sign up and own your first apartment building.

Dumb Advice #5: The Only Way to Earn Money is With a Job

People will say the only way you can earn money is with a real job. Not true. You can make money by watching the news.

Seriously. Research companies want to pay you to watch the news. You could add up to $225 a month to your pocket by signing up for a free account with Swagbucks. It’ll present you with short news clips to choose from every day, then ask you a few questions about them.

You just have to answer honestly, and Swagbucks will continue to pay you every month. This might sound too good to be true, but it’s already paid its users more than $429 million. We talked to one user in Pennsylvania, 52-year-old Carolinda Hendrickson, who earned $1,200 in a year.

It takes about one minute to sign up, and start getting paid to watch the news.