7 Controversial Money Opinions That Will Raise Your Financial Advisor’s Eyebrows

Mindy: Personal finance is personal for a reason. Everyone approaches spending, saving, and investing differently. So how do you sift through the endless advice online and in books, or even on podcasts, to find what’s actually right for your finances? Today, we’re going to help cut through the noise and discuss some of the more controversial financial opinions out there. We’ll analyze what’s worthwhile, what’s bogus, and how these hot takes could shape your financial future. Hello, and welcome to the BiggerPockets Money podcast. I’m Mindy Jensen and with me today is Amanda Wolf, the She-Wolf of Wall Street.

Amanda: Hi Mindy. I’m thrilled to be here. There’s a lot of financial advice out there that sounds nuts, and I’m excited to break down what’s real and what’s a bit overblown. To get us started, Mindy, was there anything you believed about finances that you figured out was completely wrong?

Amanda: Oh, I’ve had so many misconceptions about money from when I was younger. Notably, I used to think that investing was only for the wealthy. Right out of college, I avoided the stock market, worried I’d lose everything. I now realize that with a basic understanding of financial literacy, you see that wealth is often built through investing. That was a huge revelation for me. What about you, Mindy?

Mindy: For me, the idea that really changed my perspective was that you have to work until you’re 65. Early retirement seemed like a fantasy for lottery winners or high-powered executives. Then, my husband and I discovered that article on Mr. Money Mustache about the surprisingly simple math behind early retirement. It was like the sky opened up for us!

Amanda: I remember first learning about the FIRE movement and being skeptical. I thought I’d be bored if I retired early because I liked my job. I was 24, fresh into the corporate world, but I’ve since realized it’s more about having the freedom to choose how you spend your time. Money gives us that power to make decisions, to leave situations that no longer serve us.

Mindy: Right? Loving your job is great, but it’s nice to know you have options if things change. So, Amanda, what’s the first controversial take we’re tackling today?

Amanda: Let’s talk about sabbaticals. Some say that taking a break from work is financially reckless, akin to splurging on a sports car, considering lost earnings and contributions. I strongly disagree. If planned well and funded from savings, sabbaticals can be great for mental and physical well-being. You don’t need to work tirelessly for decades just to hit a certain age.

Mindy: Absolutely, but with conditions. Make sure you can afford a sabbatical without compromising your financial stability. If you’re at a place where a break won’t disrupt your long-term goals and you’ve planned for it, go for it. It could rejuvenate you and might even lead to new opportunities.

Amanda: Exactly! And I think we should break out of this notion that we have to work relentlessly without taking care of ourselves. There’s so much to gain from taking a well-deserved pause when it’s feasible.

Mindy: Agreed, just make sure your sabbatical aligns with your current financial situation. Now, what’s another controversial opinion you want to highlight?

Amanda: I stumbled on a thread where someone proudly claims they don’t budget. They save first and spend what’s left however they see fit. It’s unconventional, essentially saying “budget” is a taboo word in personal finance. I think it’s about knowing what works for you, but it’s a bit risky for those who haven’t developed good financial habits yet.

Mindy: Interestingly, many in the FIRE community actually do something similar. They prioritize saving a chunk of their income and then spend without strict monitoring. It’s more about intention than micro-managing every dollar. It might not be for everyone, though. There’s a time for structured budgeting, especially if you’re sorting out spending habits.

Amanda: Yes, just make sure your fundamental needs and savings goals are handled first. And tracking loosely gives some people a healthy balance between enjoying life and financial awareness.

Mindy: Let’s shift gears a bit, Amanda. We’ve talked about investing myths and budgeting, but what’s your take on saving for retirement?

Amanda: Some people think we overestimate how much we need in retirement savings. I disagree. Many aren’t saving enough due to various factors like lifestyle choices and early-life spending habits. It’s essential to prioritize our long-term financial health.

Mindy: I kind of see how obsession in the FIRE space might push people to over-save, but I’d still recommend prudence. Many learn they’re actually financially independent earlier than expected. It’s all about balancing future security with present enjoyment of life.

Amanda: Right, the key takeaway is to plan, save wisely, but don’t stress to the point you rob yourself of current life experiences. Now, how about we talk about frugality—is it truly overrated?

Mindy: I agree, frugality can be overemphasized. Once you hit a certain point, it’s more important to focus on boosting income if possible, rather than agonizing over every spending choice, though maintaining sensible spending habits is vital.

Amanda: Exactly, people’s focus should shift from squeezing every penny to actively seeking ways to grow their income through learning, new opportunities, or career moves. Constructive growth can make much more impact.

Mindy: That’s a great point. Let’s move to a topic that gets a lot of buzz—hustle culture.

Amanda: I think hustle culture isn’t totally a waste, but find balance; use it as a platform to enhance primary income and explore interests. The key is ensuring it doesn’t lead you down a burnout path—especially if it doesn’t align with your goals.

Mindy: Smart advice! Look for side ventures that really matter to you and can provide value, not just financial rewards. It keeps you enthusiastic and less likely to fizzle out.

Amanda: Exactly. It’s important to find a path that aligns with what you love doing, makes extra income, and could transition into a long-term venture.

Mindy: We’ve covered so much today, but let’s touch on one last hot take. Renting versus owning—your thoughts?

Amanda: Renting doesn’t need to be frowned upon if it’s the right fit for your lifestyle and goals. Homeownership isn’t a must for everyone and could be more hassle than it’s worth for some.

Mindy: Agreed, owning a home isn’t the definitive ticket to financial success. Prioritize what makes sense to you and fits within your long-term plan. Don’t cave to societal pressures to own if it doesn’t resonate.

Amanda: Definitely, and that goes for emergency funds too. Relying on credit cards or investments for emergencies can set you back when things go south. Prioritize having one to fall back on to avoid last-minute scrambles during crises.

Mindy: Exactly, better to have that safety net than additional stress during unexpected times. This has been an insightful discussion, Amanda. Thanks for joining me and sharing your great insights today!

Amanda: It’s been fantastic being here. Always a pleasure to chat with you, Mindy. As always, you can find me on Instagram at the She-Wolf of Wall Street or over at shewolfofwallstreet.com for more money tips and advice.

Mindy: That wraps up today’s BiggerPockets Money podcast. Thanks for tuning in and see you next time!