Living in the digital age means we can now easily dip our toes into the vast ocean of online money advice. This can be advantageous for anyone with money concerns (and who doesn’t have one?). Still, just like any large body of water, this virtual space can also overwhelm those who try to sail and look for the golden nuggets of wisdom. No piece of advice is universally applicable, after all.
Why is it important to filter advice?
Being picky in financial advice can offer many benefits. Suppose you are a 22-year old fresh graduate looking to start a business. In that case, financial wisdom meant for a 45-year old employee with two kids and a mortgage may not work for you – and vice versa. You see, money is personal, so the approach has to be unique to your situation, too
If you blindly follow advice without comparing your circumstances to others, you might find yourself in a deeper, even stickier, situation. And who wants that, right?
Know thyself (financially speaking)
First things first before you start sifting through advice: what is your financial situation? Do your earnings allow you to spend on miscellaneous stuff, or are you just getting enough to make ends meet? What are your goals, both short-term and long-term? Do you rely on a licensed money lender? As in most things, it is essential that you understand the whole picture before looking for some answers. This way, you can narrow down your search to advice that is actually relevant to your needs.
Consider the source
When you come across a piece of financial advice, take a moment to consider where it’s coming from. Is it from a reputable financial institution or a random person on social media? While there are certainly some knowledgeable folks sharing great advice on platforms like TikTok or Instagram, it’s important to be a bit skeptical. Look for credentials or experience that backs up their claims. And remember, just because someone has a large following doesn’t necessarily mean they’re a financial expert!
Check for hidden agendas
Unfortunately, not all financial advice out there is given with pure intentions. Some people or companies might be trying to sell you something or make a commission off your decisions. This doesn’t necessarily mean their advice is bad, but it’s something to be aware of. If someone is recommending a specific product or service, do a bit of digging to see if they stand to benefit from you following their advice.
The test of time
When it comes to money matters, trends come and go, but solid financial principles tend to stand the test of time. Be cautious of advice that seems too trendy or promises quick riches. Instead, look for advice that aligns with time-tested financial principles like living below your means, saving for emergencies, and investing for the long term.
Conclusion
Remember, the goal isn’t to follow every piece of advice you come across, but to build a financial strategy that works for you. So go forth, filter that advice, and create a money plan that helps you achieve your goals. You’ve got this!