Why Personal Finance Advice Isn’t Universal
This week on Financially Naked: Stories from The Financial Gym, two of our Certified Financial Trainers, Kadri and Ijal are here to talk about why advice about personal finance isn’t universal. While the internet is a vast source of information, every situation is unique and the advice you hear on social media may not apply to everyone. They share information about how to filter through advice, how to recognize what fits your unique situation and the power of building a personalized financial plan that aligns with your goals and values.
Podcast Notes
The Pros and Cons of Generalized Financial Advice
There are pros and cons to all personal finance advice on the internet. Social media has made financial information and conversations more accessible and less intimidating. This can be inspiring for some people, but it can be overwhelming and confusing to know what applies to you specifically.
Quick clips and soundbites can encourage curiosity but often lack context and nuance. These clips can be a great starting point for further research but shouldn’t solely be used to make financial decisions.
Personal finance is personal, and every situation is unique. What may be a good plan for one person may not work for another. It’s important to follow a personalized plan that supports your specific needs, goals, and emotions around money.
When consuming personal finance content, it’s important to evaluate advice in the context of your financial picture. Following ‘trends’ may not lead to the outcomes you truly want. For example, chasing credit card points doesn’t make sense for someone carrying a large balance and paying interest.
Personal Finance in Action
Kadri and Ijal discuss example scenarios to illustrate how personal finance strategies can vary, even for folks who have similar numbers.
Someone managing high-interest debt with small savings may want to focus on reducing spending, paying down debt, and building an emergency fund. How these things are prioritized may depend on how consistent their income is or if they have a support system to fall back on if needed.
Someone transitioning from savings to wealth-building may prioritize investments based on clear goals like homeownership or retirement. What type of investing they do will depend on those overall goals.
Personal finance is more than just the numbers. Emotions like confidence, fear, or anxiety play a big role in our decision making. Other factors like external support, if you have kids, and what type of work you do also play a part in your overall plan.
Your goals may evolve over time, and personal finance requires readiness to be flexible as life happens. If you’re not exactly sure what your goals are, that’s okay. Reconnecting with your values can help guide you in the right direction
Making a Financial Plan that Works for You
Work with trustworthy professionals who can help create a plan for your situation. Remember that just because someone has a lot of followers or appears to be successful, it does not mean they are a credible source of information.
Professionals should take a holistic view of your finances and align their advice with your goals. The Financial Gym uses a goals-based budget approach. We match clients with Certified Financial Trainers who will make them feel comfortable and create personalized plans that align with their habits, emotions, and personal goals.
If you are creating a plan on your own, we recommend starting with the basic fundamentals: understand your expenses, address high-interest debt, and establish an emergency fund. For most people, these foundational steps will put you in a solid spot.
Personal finance is deeply individual and requires a plan that fits your life. Whether you create it yourself or seek professional help, remember to stay flexible and ready to adjust as life happens and your goals evolve.
If you want to work with a Certified Financial Trainer to help navigate your finances, schedule a free warm-up call today! If you have any ideas or questions for the show, send an email to trainerpodcast@fingyms.com.