A lot of people recognize that their finances aren’t in the best place and want to learn how to change that. There’s nothing wrong with that. However, you shouldn’t always believe what you read online and, when it comes to financial advice, it can be even more costly to do that. Here, we’re going to look at how to make sure you’re not taking bad advice.
Look at who’s paying for the advice
When you look at financial advice online, there’s always a significant chance that it’s being shared by someone who is in financial services, be it personal loans, credit cards, or financial independence courses. This doesn’t mean that it’s bad advice per se, but you should be aware of the bias it can put on their advice. Instead, look for impartial third-party bodies like the Credit Counseling Society to make sure you’re getting unbiased information put out there for the good of you, the individual.
Don’t get suckered into paying for broad advice
Financial advisors get paid to give you specific advice on your situation. However, there are plenty who will ask you to pay for much broader advice designed to apply to many situations and, as such, won’t be applicable to you. If you see free eBooks that offer good advice but then encourage you to join paid courses for more, do your research with pages like this Endless Income review to know what you’re getting into, first. Even if the advice is good, it doesn’t always mean it’s worth paying for it you can find it without strings elsewhere.
Keep it simple
You should always be wary of any “method,” “trick,” or “hack” to get your finances in check. If someone has to get paid to teach it to you, then you have no idea if it’s going to work. Instead, look for simple solutions to get your finances on track and make sure that the methods offered are widely accessible. That way, you don’t risk anything by simply following the advice, like you would if you had to pay for a course for some super complicated method.
Get the pros and cons
There are different approaches and kinds of advice to all manner of financial goals. For instance, there are plenty of different strategies for tackling debt. If you read about one that sounds incredibly promising, you should then go on to see if anyone can highlight the potential negatives of following that strategy, as well. For instance, this Snowball Method breakdown looks at both the pros and the cons, while also comparing it to other methods of clearing debt. Make sure you’re as informed on any given strategy before you start devoting your time, energy, and money to it.
Simply put, make sure that the advice you follow is not just reasonable and easy to implement, but that you have a broad range of opinions to check on it. That’s the best way to make sure it’s widely recommended and not someone’s personal get rich quick scheme.
CANDY TAI is a wife to David and mom of 5 with a degree in Communications. She's a native Texan (Hook 'Em Horns!) who's been making her home in the Kansas City metro area for nearly 15 years. She loves being able to shuffle her kids from their various sports activities, piano lessons, and school activities. She enjoys fashion, beauty, reality TV, and moviegoing.