What I've noticed about financial influencers

One thing I know about personal finance is it is deeply individual. Yes, there are the mechanics of money management and the tools needed to help you reach your financial goals, but people have different life experiences, personalities, backgrounds, situations, family dynamics, and learning styles. Money weaves into so many areas of our lives that it is important to understand all of these factors and more, impact how someone navigates money in their life. That is why it is important NOT to give blanket advice and sell guaranteed solutions. I have noticed quite a few financial influencers deliver financial advice in this way.

Let’s imagine two single people who earn the same income. One rents, and the other is a single father of two who owns a home. The non-parent probably doesn’t need six months of expenses saved, whereas the single parent does because he has more responsibilities—children, a mortgage, and the expense of homeownership. In other words, his emergency factor is higher. In this case, the blanket advice of everyone must save six months of expenses does the single person a disservice because they could direct more money towards their other financial goals. Another example is looking at someone’s occupation. If someone is a surgeon or a chef and they can’t work if they hurt their hand, having an adequate buffer should be part of their financial plan.

Too many people fall into the trap of one-size-fits-all advice. I see influencers say things like, "Everyone should cut up your credit cards." However, there are situations where it's important to have one or two credit cards for easy access to funds. Likewise, they may say, "Don't buy extended warranties." However, if someone can't afford to buy a replacement for a product that breaks, that warranty might be a lifesaver. I see a lot of one-size-fits-all advice regarding investing. There's no way you should be taking investment advice if someone hasn't looked at your entire financial picture. They should know your age, your goals, and your risk tolerance.

Let me be clear, my issue isn't with financial advice on social media or with anyone offering it. I mean, I'm on social media. I do shudder, however, when it is presented as absolute and recommend exercising caution. The best way I have found to learn personal finance is to educate yourself by listening to various sources, practice discipline and consistency, and get help from a professional who guides you and helps you grow.

Lana, Financial Coach