There are a lot of clashing ideas floating around when it comes to personal finance,

and sometimes you need to know the don'ts as much as the do's.

So today we're going to talk about the worst ways to invest your money so you can avoid the

traps and importantly find out what to do instead.

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All right, one of the fails I think that people really jump into is falling for flashy

new real estate trends.

So there's all these new startups, you guys, that's like popping up everywhere of like

whether it's your primary home, we're doing investing, and so like there's a company called splatero and they basically lead with the

perk of receiving a lump sum of cash in exchange for owning a share of your home's future value so

ultimately it puts you at risk for losing a significant amount of equity from your home's

appreciated value down the road and then if you don't pay back, like all the back charge and stuff, like it's crazy. But people see this like, oh, if you need $30,000 to start your business, it's, I mean, not really a HELOC at all. It's kind of like this other way of doing it. But these companies are popping up everywhere and people are very intrigued and

sounds good. But listen, if it sounds too good to be true, it is. All right, speaking of HELOCs, let's talk

about HELOCs. Heeloc is a home equity line of credit. So you're basically taking equity out of your

home. And usually people will do it to add value to their home, like in addition, or they're putting

in a pool, or they're doing renovations inside, whatever it is, they're thinking, oh, I'm adding value.

But basically, you're going deeper in debt. You're losing the value of your home. So if you're

wanting to do any of the above, just move at the speed of cash. So you want to save up, which means it's going to be slower,

maybe not as like, you know, beautiful and glamorous as you want it to be. But honestly,

getting to the point that you are debt-free is a huge goal financially for not only the peace

of mind, but also financially for your income and continuing to build wealth long term.

And so instead of going backwards in your home's equity, continue to move forward.

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