Page 11 - aruba-today-20220525

A11
BUSINESS Wednesday 25 May 2022
Millennial Money: How to tell when money advice is bad

By SARA RATHNER of Nerd- budget where you apply
Wallet 50% of your take-home pay
There are a lot of people to “needs” (like housing,
out there who want to tell utilities and transportation),
you what to do with your 30% to “wants” (like hob-
money. The problem is only bies and travel) and 20% to
some of them know what savings and debt payments
they’re talking about. as an example. In high-cost
Whether it’s a friend with a areas, she notes, rent alone
hot investment tip, a rela- might eat up half of your
tive spouting off outdated take-home pay.
directives about the way it Bad money advice can
“should” be done or a so- also oversimplify a com-
cial media influencer tout- plex decision. With more
ing a trendy financial prod- people working remotely,
uct, money advice can be for instance, a friend may
hit or miss. You can filter out suggest you simply move
the useful tidbits and leave to a lower-cost city to save
the rest, but to do that, money.
you have to know how to Pierce, who lives in a high-
evaluate which pieces of cost area in New Jersey
advice you can trust. and has no plans to leave,
CONSIDER THE SOURCE Commuters walk through a corridor in the World Trade Center Transportation Hub, June 21, 2019 says that this advice disre-
Certified financial plan- in New York. gards the non-monetary
ners, financial coaches or Associated Press benefits of staying put such
nonprofit credit counsel- as being close to an estab-
ing agencies can all sup- have education as a large cost a nickel back in the fied financial planner and lished community of family
ply you with advice that’s part of what we do,” says day, instead of scoffing in founder of Just Wealth. and friends.
tailored to your unique cir- Durriya Pierce, a certified disbelief, ask open-ended THINK ABOUT HOW FEASIBLE BE WARY OF ADVICE THAT’S
cumstances. Look for pro- financial planner and fi- questions. How much was THE ADVICE IS FOR YOU TOO GOOD TO BE TRUE
fessionals who don’t earn nancial advice expert at your grandfather paid at his Money advice is like cloth- The internet and social
a commission when you Albert, a financial services first job out of school? How ing. It’s designed to fit a per- media are rife with mon-
agree to follow their advice company. A friend or rela- much did your parents’ son, but that person might ey-related clickbait that
by using recommended so- tive who accomplished a first house cost? That can not be you. Certain money promises near-instant suc-
lutions. That way, you know similar financial goal could open up a conversation best practices don’t work cess. Influencers sell ac-
you’re getting unbiased also have actionable tips about how salaries, hous- for everyone’s situation. cess to expensive courses
guidance. to share. You might be ing costs and other money “So often we ignore the that claim they’ll make you
As an added bonus, you’ll able to lean on them as a issues have changed over context of what people a millionaire. High school
also get a solid explana- source of emotional sup- time, so you can both un- are going through. Finan- acquaintances send you
tion of how different finan- port while you work toward derstand where the other cial advice-givers don’t direct messages out of the
cial products work, which is your own goal. person is coming from. bring in the context and blue, asking if you want to
knowledge that can serve There may even be some “At some point, it becomes it’s really harmful when “be your own boss” by join-
you for years. nuggets of wisdom in out- less about them sharing you don’t,” Luong says. “It ing a multilevel marketing
“Financial matters tend to dated advice that previous advice and more about perpetuates the myth that program. Many of these
be complex, and I think generations relied on. The them sharing their story,” we can do this on our own get-rich-quick schemes
that’s why it’s so important next time you’re treated to says Phuong Luong, a and we cannot.” She cites are a waste of time and
for individuals like myself to a lecture about how cars Massachusetts-based certi- the oft-discussed 50/30/20 money.q

Airbnb ends rentals in China to focus on outbound tourists

BEIJING (AP) — Airbnb Inc. There was little overlap be- the chief strategy officer
will stop listing homes and tween Airbnb’s business in- of Airbnb China, Nathan
experiences inside China side China and catering to Blecharczyk, in a statement
this summer and instead outbound travelers, which on its social media ac-
focus its business in the Airbnb hopes will limit the count.
country on serving Chinese impact of suspending the Landlords represented by
tourists looking for lodgings domestic offerings. Airbnb have had more
abroad, a company of- Airbnb joins a series of for- than 25 million guest arriv-
ficial said on social media eign internet companies als since 2016, according
Tuesday. including Yahoo Inc. and to Blecharczyk’s statement.
Airbnb began listings in Chi- eBay Inc. that pulled out The Chinese government
na in 2016, but they have of China after running into has blocked foreign tourists
still accounted for only fierce local competition from visiting since the pan-
about 1% of company rev- and regulatory barriers. demic hit in early 2020 and
enue in recent years. “We have made the dif- has told the Chinese pub-
The San Francisco-based ficult decision to refocus lic to avoid foreign travel Airbnb CEO Brian Chesky speaks during an event in San
company found the do- our efforts in China on out- that isn’t essential for busi- Francisco, Feb. 22, 2018.
mestic Chinese business bound travel and suspend ness or study. International Associated Press
costly and complicated to our homes and Experienc- airlines and other travel
run, and the pandemic has es of Hosts in China, start- companies that operate in will re-open and travel by eventually, although the
made matters worse. ing from July 30, 2022,” said China expect that borders Chinese citizens will pick up timing is unclear.q