The Cheat Sheet took some time to speak with top experts in the field of personal finance about the impact of good and bad financial advice. We spoke with Certified Financial Planner Jeff Rose of the blog Good Financial Cents, The Money Coach Lynnette Khalfani-Cox, and CreditCards.com’s Matt Schulz. We asked them to share the best piece of personal finance advice they ever received. Here’s what they had to say.
Don’t be mastered by your wants
“The best personal finance advice I ever received came from a finance professor in my junior year of college. The professor had asked members of the class to raise their hand if anyone had intended to buy a new car every three to five years. Already having my sights on a BMW upon graduation, I quickly raised my hand. This is before I knew anything about the power of compounding interest. That professor showed me what a $300 monthly car payment could grow to be over the course of my working life. It was a huge eye-opening experience. Because of him, instead of buying a BMW upon graduation, I drove my grandmother’s 1998 Chevy Lumina for the first several years of me being a financial advisor. That allowed me to max out my Roth IRA and also partially fund my 401(k), which has well positioned me for a successful retirement.”