I used to completely ignore financial advice given by people who are broke. If they have no money, what could they possibly tell me about managing money.

If you think about it, you could learn a lot from a broke person. They’ve obviously made some heavy financial mistakes. If nothing else, they can tell you where they went wrong.

  • I shouldn’t have bought that new car when I really couldn’t afford it
  • That apartment cost too much for my income
  • I was living above my means
  • I invested in something I knew nothing about
  • I borrowed from my 401k then I quit my job

Money mistakes are all over the place. While I may not let a broke person tell me what I should do with my money, I may listen to them tell me what I should notdo with my money. It may sound mean but, learning from someone else’s mistakes is priceless. Heck, I’ve made them to and I like to spend my time telling people where I went wrong, so they don’t do the same things.

Much of money management basics is common sense. Don’t spend more than you make. Don’t borrow more than you can afford. Keep track of where your money goes. So when you hear some bad advice, you may recognize it right away. Of course, it always pays to double check what you hear from any source to make sure you’re not getting duped.