Personal finances really come down to a simple set of principles. However, all of the conflicting information can make your head want to explode.
One person says the road to wealth is buying real estate. The next person says real estate is the worst investment you’ll ever make.
Another source tells you that traveling is a huge waste of money. But wait……..that other persons says spending money on travel is the best money you’ll ever spend.
What’s a person to do?
Here’s how to really sort through conflicting financial advice.
You are You.
That sounds kind of weird.
Let me further explain.
You are the only person in this world that thinks the way you do. Sure, it’s completely possible to find other like-minded people but you will NEVER find someone who thinks exactly the way you do about all things.
Your values are probably different than mine. I’d be willing to guess that your hobbies are most definitely different than mine. Your family situation is different than mine. Your income is probably different than mine. Your life aspirations are different than mine.
And that’s how it’s supposed to be. (Because the world would be incredibly boring if we were all the same, right?)
That’s why there’s so much conflicting information out there. Everyone is coming at you from their own experiences and own point of view. A lot of the advice that you hear just flat out won’t make sense for your life.
This is why you should never, ever blindly follow someone else’s advice and instead should be proactive about what works for you.
(This advice really applies to all facets of life and not just personal finances.)
Make Your Plan From Universally Sound Advice
While there’s a lot of conflicting information on how you should do something there are also some universally sound principles when it comes to personal finance.
- Spend Less than You Earn
- Avoid Consumer Debt
- Save for a Rainy Day
- Save for Retirement
- Get Good Insurance (In Most Cases)
- Learn How to Make Your Money Work for You
All of those things above are good things. Where people get tripped is the path to achieving them.
So, How Do You Avoid Conflicting Financial Advice?
You take the basic principles above and construct a plan that works for you and your unique situation. You can also seek help from a professional, like the ones at Ascent Private Wealth.
There are a million and one ways to reach those end results you’re looking for. Never trust someone who tells you it’s their way or no way, because that simply is not true.
How do you sort through conflicting financial information?