4 Pieces of Dumb Financial Advice That Most People Believe

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: You Need to Save $1,000,000,000,000,000 Before You Die

Have you thought about how your family would manage without your income if you’re gone? Chances are your checking account balance won’t last forever.

You’re probably thinking, I don’t have the time or money for that. But a company called Fabric can help you apply for a term life insurance policy that could give your family a big chunk of money (the coverage amount you applied for) if you pass away. (We’ve heard people are getting policies for as little as $14 a month.)

Maybe you’ve thought about this before, but it feels too overwhelming. The truth is, this is one of the easiest (and smartest) things you can do with your money right now. It takes about 10 minutes to apply, and you don’t even have to leave your house — you can do it all from your browser.

So if you want to help make sure your family is set up for life after you’re gone, take 10 minutes to fill out an application.

Dumb Advice #3: You Need to Be a Billionaire to Invest in Real Estate

Take a look at some of the world’s wealthiest people. What do they have in common? Many invest in large private real estate deals. And here’s the thing: There’s no reason you can’t, too — for as little as $10.

A company called Fundrise lets you get started in the world of real estate by giving you access to a low-cost, diversified portfolio of private real estate. The best part? You don’t have to be the landlord. Fundrise does all the heavy lifting.

Fundrise’s Starter Portfolio has a minimum of only $10 and is geared toward first-time real estate investors. Your money will be invested in the company’s Flagship Fund, which already owns more than $250 million worth of real estate around the country, from apartment complexes to the red-hot housing rental market to larger last-mile e-commerce logistics centers.

Want to invest more? Fundrise offers a variety of account levels and features to fit every type of investor’s needs. Once invested, you can track your performance on Fundrise’s website and mobile app, and watch as properties are acquired, improved and operated. As tenants pay their rent, you could earn money through quarterly dividend payments, and over time, you could earn money off the potential appreciation of the property. Since 2014, Fundrise investors have earned roughly $100 million in dividends alone.

So if you want to get started in the world of real-estate investing, it takes just a few minutes to sign up and create an account with Fundrise.

*Past performance is not indicative of future results. The publicly filed offering circulars of the issuers sponsored by Rise Companies Corp., not all of which may be currently qualified by the Securities and Exchange Commission, may be found at www.fundrise.com/oc.

Dumb Advice #4 You Have to Pay Your Credit Card Bill Every Month

If you have credit card debt, you know. The anxiety, the interest rates, the fear you’re never going to escape…

And the truth is, your credit card company doesn’t really care. It’s just getting rich by ripping you off with high interest rates. But a website called AmOne wants to help.

If you owe your credit card companies $100,000 or less, AmOne will match you with a low-interest loan you can use to pay off every single one of your balances.

The benefit? You’ll be left with one bill to pay each month. And because personal loans have lower interest rates (AmOne rates start at 6.40% APR), you’ll get out of debt that much faster. Plus: No credit card payment this month.AmOne won’t make you stand in line or call your bank, either. And if you’re worried you won’t qualify, it’s free to check online. It takes just two minutes, and it could help you pay off your debt years faster.