Investors make teaching others a fulfilling deed to help other determined people attain what they have reached in life. But sometimes, some tips may sound so plausible but, in another perspective, may end up as a fallacy. Let me tell you some money-saving tips that aren’t truly honest.

Student Loans are Good Debts

“Education is one of the treasures that no people can take away from you.”

Collegiate, masters, and doctorate degrees are important for education but could also mean a lot of money. That’s where they say student loans are good debts. Good debts refer to those debts which increase their value over time which makes it a sensible debt.

What makes people think of loaning for college degrees?

“After graduating, I will be able to get a good-paying job and pay-off my debt in no time.”

True and false. A college diploma does not equally ensure a good job or a high-paying job. Especially for new graduates, with fewer skill sets, you may end up with a job that can earn you enough for your debt and some expenses leaving you with no savings and more difficulties. Just like any other loans, student loans also accumulate interests which can be much more than what you originally owe until you find yourself working for long just to pay for your debt.

In investing, there are things that people weigh to ensure a good profit from debts; Return of Investment (ROI) versus interests. If the return of investments will not be able to at least double the monthly payments for the loan, think again.

So, before getting a student loan, think carefully, is it worth it? Is this the only way I can go to college? Or do I even really need to go to college (especially if you want to do jobs or businesses that do not require one)?

Buying a house is Better than Renting


Properties including real-estates are considered to be good investments as their prices go up over time and you can sell them at a higher price than when you first bought it. However, after buying a house, there are some things you would also have to consider, the mortgage, utility costs, home repair bills, and taxes. But for renting, sometimes, you are only entitled to paying utility costs on top of your monthly rent.

What makes renting better than buying your own property?

The mortgage for owning your house is sometimes more expensive than when you are renting. However, just the same, mortgage and renting has to be paid for a very long time. Owned homes can be sold or inherited by the next generation. But renters can enjoy the flexibility of choosing homes (especially when you may be assigned to different places for your job), enjoy the amenities, free from real-estate taxes (which can be bothersome), lower insurance costs and utility bills, and free from home repair expenses which make hefty savings!

Buying or renting shouldn’t be based on because others say it’s a good investment or not. It should be based on your ability to pay and maintain it. If you think you will not be able to maintain your financial standing now and have the risk of going down, better think of renting which can provide the flexibility of downsizing. It may not provide the convenience an owned property could give but it can surely save you from so many headaches.