Recently there has been some discussion about pre-paid cards and whether they are a good vehicle for those with bad credit to improve their credit history. Well the simple answer to this is no they are not. Before I jump into why they are not let's take a moment to look at the details of exactly what money is and what it means.
Now the truth is that the vast majority of financial professionals are not so noble. From your cousin that is your insurance agent to your accountant of fifty years they all are trying to make money off of you. That is their main goal. That is what they care about and that is what their first priority is. It is all about generating more money.
I am sure this is nothing that many of you do not already know. I know many people avoid financial professionals just like they would a group of monsters because they know they mean to do them harm. But there are many people that do not seem to understand that their financial professional is not on their side. I have seen it happen countless times where a person will think their friend, or trusted celebrity, only has their best interest at heart. While I am sure a few do, most do not.
But I am not just going to paint a bleak hopeless picture for you. I am going to tell you what you can do to protect yourself. The very first thing you need to do is educate yourself. Now I am not going to tell you it will be easy. The financial business is hard. There are a lot of smart people in it working with the latest technology with the sole goal of making money. I have seen mathematicians that could not grasp investment concepts.
So now that I have scared half of you, let me say it is not that bad. You have that one thing that no financial pro has, you actual know what you want out of life. That is the most important thing to remember. A financial professional is there to help you reach your goals not theirs. If you stay focused on your goals then you will be fine.
The last thing I am going to leave you with is that you must read the details and ask questions. Take as much time as you need. Don't let them rush you. They know that the longer you take to think about something the less likely you are to do it. If they pressure you then you know it is time to work with someone else. And you are in luck, there is always someone else either across the street or a phone call away. Always remember that if it sounds too good to be true, then it is probably a lie.
Make sure to keep all those things in mind anytime you hear anyone trying to give you friendly advice. Doesn't matter if they are your favorite guru who is on TV all the time. Doesn't matter if they are your favorite actor with no financial training at all. Doesn't matter if they are a millionaire or billionaire. No one's book or set of books are worth a hundred dollars. If they were I am sure they would be trying to sell them for a thousand.
Everything else I have to save for the book because babies always need a new pair of shoes.