14 Cringe-Worthy Money Tips People Still Believe
Some financial advice just won’t die, no matter how wrong it is. It gets repeated on podcasts, in blog posts, and at family dinners like it’s gospel.
In this gallery, you’ll see the most misleading, outdated, or just plain bad money tips that people still believe. As a CFA who retired early, I’ve seen firsthand how advice like this holds people back.
👉 Click or scroll through the gallery to see which myths made the list, and why they deserve a second look.
Table of Contents
Cringe Financial Advice #1: “Don’t Use Credit Cards”
Telling people to avoid credit cards entirely is just lazy advice. When used properly, paid off in full each month, they build credit, offer rewards, and give purchase protection that debit cards don’t.
The real issue isn’t the card. It’s discipline and understanding how to use the tool, not fear of it.
Finance Expert (With 830+ Credit Score) Dismisses 10 Credit Card Myths
Cringe Financial Advice #2: “Buy My Course to Learn How”
If someone says the key to wealth is hidden behind a $997 online course, run. Fake gurus love to sell shortcuts to people who are just getting started, but real financial freedom doesn’t come from swiping your card on their sales page.
No course replaces years of smart saving, investing, and habit building. The only person getting rich off that deal is the one pitching it.
Cringe Financial Advice #3: “Pay Off Mortgage Before Investing”
This one feels responsible, but it’s not always smart. Paying off a 3% loan instead of investing in assets that average 7–10% returns can quietly kill your long-term growth. You don’t need to be debt-free to build real financial independence, you need to make your money work.
Letting cheap debt sit while your investments grow is how many people reach financial freedom faster.
We also made this related Video: A CFA’s Take on Dave Ramsey’s Baby Steps: A Young Retiree’s Comprehensive Analysis
Cringe Financial Advice #4: “Option Selling Is Easy Passive Income”
Options aren’t passive. They’re trades, and risky ones at that. Selling covered calls or cash-secured puts might work if you know what you’re doing, but it’s far from “set it and forget it.”
The truth? 95% of traders fail. If it sounds like easy money, it’s probably not for beginners.
Cringe Financial Advice #5: “You Should Buy an Annuity. It’s Guaranteed”
Annuities get pushed hard as the answer to retirement income, but most people don’t even know what they’re signing up for. High fees, limited access to your own money, and complex rules make them feel more like handcuffs than safety nets.
“Guaranteed” doesn’t mean “best,” and the only thing truly guaranteed is that the insurance company gets paid first. They’re tools, not magic.
Investment Red Flags You Can’t Afford to Ignore
Cringe Financial Advice #6: “Leverage and Debt Are the Enemy”
Debt isn’t evil. Bad debt is. Smart leverage like using a mortgage to buy a cash-flowing rental or taking on low-interest business debt can build wealth faster than saving pennies.
Fear of debt keeps people stuck. Mastering it moves you forward.
Cringe Financial Advice #7: “Just Buy the Dip”
It’s become a meme, but it’s also dangerous. Saying “buy the dip” implies the market will always bounce back fast, and that you know when the dip ends. That’s not a plan, it’s a guess.
A better approach for most people? Set up automatic investing and stop pretending you’re smarter than the market.
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Cringe Financial Advice #8: “Buy Bitcoin, It Always Goes Up”
Nothing always goes up, not stocks, not real estate, and definitely not crypto. Bitcoin has had monster gains, but it’s also crashed over 70% more than once.
Saying it will always go up isn’t investing, it’s fantasy. If you’re buying, understand the risk. If you’re preaching it, don’t.
Cringe Financial Advice #9: “30-Year Mortgages Are Always Better”
This advice sounds good on the surface, but it’s rarely the full picture. A 30-year mortgage lowers your monthly payment, but it means way more paid in interest over time.
If you have the income to comfortably handle a 15-year loan, you’ll build equity faster and save big. Always is a dangerous word in personal finance.
Why A 15 Year Mortgage Makes More Financial Sense Than 30 Year Mortgages
Cringe Financial Advice #10: “Just Follow the Latest Stock Tip”
By the time a stock tip reaches you, it’s already priced in. What sounds like insider info is usually just recycled hype from Reddit or finance YouTube.
Hot tips create cold portfolios. Want real gains? Build a strategy, not a wishlist.
Cringe Financial Advice #11: “Use Retirement Accounts to Buy Real Estate”
Technically, yes, you can use a self-directed IRA or 401(k) to invest in real estate. But should you? That’s a different story. The rules are strict, the taxes can be brutal if you mess up, and you lose liquidity when you might need it most.
For most people, keeping real estate and retirement accounts separate is the smarter move.
Grant Cardone Says Use Your 401(k) to Buy Real Estate. A CFA Says Don’t.
Cringe Financial Advice #12: “Date the Rate, Marry the House”
This one caught fire when rates started climbing, but it’s a dangerous mindset. The idea is that you can refinance later, but refinancing isn’t free, and rates don’t always fall.
If you’re not in love with the payment now, don’t count on a better future deal. You’re marrying both.
Cringe Financial Advice #13: “Kids Are Too Expensive to Have”
This one’s not just cringe, it’s cowardly. Raising kids is expensive if you make it, but it’s not a guaranteed wealth killer. Millions of people raise families while building financial freedom at the same time.
Don’t blame kids for a lifestyle you can’t afford, blame the choices that made it that way.
Raising Kids Isn’t Expensive. But These 20 Mistakes Make It That Way
Cringe Financial Advice #14: “You Should Only Have a Roth IRA”
Roth IRAs get a lot of love, and for good reason. But acting like they’re the only account that matters ignores how taxes and income really work. Traditional 401(k)s, HSAs, and pre-tax IRAs all serve different purposes in a solid retirement plan.
Smart planning means using the right mix, not just following what’s popular online.
Bad Advice Still Gets Shared Loudest
The worst financial advice usually sounds smart at first, until it drains your wallet. “Experts”, viral quotes, and outdated rules still get more attention than boring strategies that actually work.
Real wealth comes through discipline, patience, and understanding the full picture, not just repeating catchy lines. If it sounds too easy or too absolute, it probably misses something important.
Don’t just hear advice, think it through, then run the numbers yourself.
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