There is a lot of financial advice out there. There are things people will tell you that are very true and sound, while there are other things that frankly, aren’t the best pieces of advice you could ever take.
The internet has tons of information available at the click of a button and everyone thinks they know exactly what they are talking about. Some of these people are experts, but most of them are speaking strictly from their personal experience and from a limited perspective.
There are so many financial websites and blogs telling you to do one thing and many others telling you to do something completely different. It can be confusing, and what’s right for some people may not be the best for others.
So how do you know what advice you should take and how can you tell who is giving you good financial advice and who is giving you advice that could be detrimental to your bank account?
I’m going to share a little secret with you, and it is the best financial advice I have ever received.
Your finances are your responsibility.
This may seem intuitive and silly, but if you stop and think about it, it’s the best thing to keep in mind when you are dealing with your finances.
1. No one is going to take care of your money for you. If you don’t pay your bills, the collections agency will come after you. If you live beyond your means, you will be the one that ends up in debt. If you don’t pay yourself first, you will be the one with no money saved in the bank.
2. What’s right for some may not be the best for others. Investing is something that is so important, and each and every person’s risk profile is different.
If you ignore your money and let it sit in a pile of cash you won’t get a return and you will end up losing buying power with your money over time. That being said, if you are closer to retirement or need a portion of your money to be secure (maybe you’re buying a house) it may not be worth it to put your money into equities.
3. Don’t be oblivious, get educated. If you are ignoring your money or making decisions that may not be the best for your wealth growing potential, it may be because you simply don’t know what’s going on. That’s okay, money topics can be confusing and a lot to deal with, but it’s your responsibility to learn about your money.
Pick up a book written by a reputable author and learn something about your money. Accounting firms and banks publish information that is true and useful. Doing something each month to further your knowledge financially is a responsible decision.
You may scour the internet for financial advice, but at the end of the day, your money is your responsibility.