The following is a guest post.
Would you believe that a Google search for “personal finance blog” returns over 593 million results?
When I started blogging three years ago, there were not as many blogs. Fast forward to 2012, there are blogs on every possible niche.
Lately, I have noticed many bloggers that run frugal living websites also call themselves “personal finance experts”.
I wanted to share some thoughts on why most people should take advice from personal finance bloggers with a grain of salt.
Anonymity
One major problem I have with many personal finance bloggers is their anonymous handles.
I understand why many bloggers choose to post anonymously. They may not want their friends and family to read the personal details of their life. They may also not be able to blog as themselves in the case they get in trouble with their work.
Personally, for myself to take a blog seriously, I need to see the writer’s face and identity.
An anonymous blogger does not have to care about their reputation and credibility.
In saying that I do enjoy reading the occasional anonymous post about their friend’s spending habits or their co-workers, however, would you make an investment decision based on a cartoon avatar?
Lack of Education and Credentials
What I have found with many blogs is that many bloggers simply do not have a finance background or experience in business, investing, retirement or estate planning.
They may have a communications background, marketing or human resources which is an unrelated discipline to Finance. This is not to say that the blogger is unqualified, just has a different experience.
I disclose on my blog that I have my Honours Bachelor of Commerce degree and I also obtained a finance degree. I also state that I do not offer professional or financial advice, and my blog is intended to provide general information only.
I believe that most personal finance bloggers try to convey a message of ways to save money or share their personal stories or struggles paying loans and debt.
Not a Subject Matter Expert
If you were planning to run a marathon would you listen to someone that plans to run the marathon one day or someone that has ran at least one?
It is interesting that many bloggers suggest tactics or strategies to retire or invest when they do not have enough experience or background.
I would much rather read posts from personal finance blogs that show strategies that have worked in the past. I believe this is why several of the top blogs are written by older professionals that have years of experience.
This applies to several blogging niches. For example, the most popular food bloggers have baked or cooked hundreds of recipes. Travel bloggers have visited hundreds of cities around the world.
Disclosure
Many personal finance blogs do not disclose how much they make or what they do for a living or level of income (lack of a disclosure statement hides any credentials).
I understand that several run their blogs as just a personal blog but many do not reveal small things like their current job or level of income.
The more information a blogger discloses the more trust they establish with their audience. Major magazines usually publish a photo of the author or have a small bio at the beginning of the publication to show the author’s background.
Simply Unqualified
I have found many bloggers in their 20s starting to write about personal finance but many are unqualified.
Many bloggers that write about personal finance do not have any major experiences like a move, buying a house, getting a mortgage, life insurance, or investing in your TFSA or RRSP.
This does seem harsh to some readers but this is just my opinion.
I enjoy reading personal finance blogs but before making a major investment or financial decision you should always consult a qualified source.
Author Profile: Steven Zussino is the President of GroceryAlerts.ca and posts grocery coupons and shows ways Canadians can save money on groceries. He also runs a personal finance blog, CanadianPersonalFinance.com where he discuss his personal investment strategies.
Editor’s Note: Thanks for the guest post Steve. I do agree that people should consult true experts before making major financial decisions. Still I think perspectives from people who aren’t experts can be extremely helpful and inspiring. I’m not a financial expert, but I know I can help others by sharing my experiences as well as things that I am learning along the way.
What’s your take on advice from personal finance bloggers? Would you trust all of the advice you read on personal finance blogs?
This article sounds like a little bit of sour grapes to me. Lots of people have personal finance blogs or frugality blogs. Some have helpful content and others are completely pointless….but it’s up to each individual to decide whether to read them or not.
Also, I cannot think of a single credential that would qualify someone as being an expert on frugality.
Good point Holly. It sounds like Steve’s bigger concern was when the unqualified bloggers are giving advice about major decisions such as mortgages, investing, etc. I agree that anyone at all could give advice about frugality.
I blog anonymously for many reasons. I talk a lot about my finances and wouldn’t want all of that out there. Actually, just yesterday I contacted a dealership about a new car. She replied back saying she read all my blog posts and everything on twitter and said she doesn’t want to get caught up in my mess.
I still don’t even know how she found my blog/twitter, but she did. She knew everything about my life and quoted things from my blog posts. It was weird.
And because of that, I now know that I always want to be anonymous.
Michelle @ Making Sense of Cents recently posted..Extra Money Ideas
Michelle, this is a great point at why being anonymous works for you.
That sounds like a strange scenario – how would they know who you are, unless you live in a tiny place.
My first reaction to this post was that Steve is a jerk.
Then I read Michelle’s post about buying a brand new $30,000+ Jeep despite being $$$$$ in debt and having a different (newish?) Jeep. The comments add nothing, except more cognitive discourse — no devil’s advocacy or constructive debate that I could discern.
Yes this post could be taken offensively to some people, but I know Steve had good intentions.
As for bloggers who write about finance and then are reckless with their own finances, that is a bit of a double standard. I made financial mistakes of my own when I was younger, but I wasn’t trying to be a role model for others.
And on certain blogs there really is very little constructive debate. Sometimes it’s just full on support and brown nosing despite whether it is something that should be supported or not.
Wow that’s crazy that it affected your car financing. I’d actually ask her how she found your blog. Perhaps there is some connection with your real name that you didn’t realize.
I do see what Steve was getting at about how being anonymous takes away some amount of credibility though. When you are using your real name, there is a lot more pressure to give solid advice that you can stand behind.
Wow, that’s super crazy. Good reason to stay anonymous.
I try to write about only things I’ve tried or know work. I don’t proclaim to be an expert, but that doesn’t mean I don’t have experience managing my own and my family’s finances. And things that have worked for me may just work for someone else.
femmefrugality recently posted..Frugal Cooking 205
Wow!, Michelle. That is creepy to say the least. If you’re blogging anonymously, how on Earth did they find you.
Hmmm? So glad you shared that, and what a PERFECT example of why some remain anonymous and or prefer an online identity for their blogs.
Thanks for sharing on here.
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It’s actually an example of how being anonymous doesn’t even always protect yourself. I do wonder how they found her blog though. There must be some kind of connection out there that helped make the connection.
Steve,
Interesting post to say the least. I wouldn’t be surprised if it drew a lot of heat, but than again being so controversial is what will make this post a success.
I do agree with you on the anonymity. I know not everyone wants to show their face for various reasons, but there comes a time when everyone should come out of the closet. I started anonymous, and 3 months into my blogging journey I came out. It was one the best decisions I made, as it opened up a whole new world of opportunity, new “real-life” friendships, and than some.
I also agree with you on qualifications, therefore I stay away from “retirement” posts, as I don’t have much experience in that end. I’m still a newbie to retirement saving. I do incorporate some TFSA/RRSP posts from my PERSONAL experience.
Finally two points I disagree with you on are education and disclosure. I don’t have a Finance degree, but have become very good with finances. Secondly, most of the finances taught at college/university level is corporate, very little personal finance. That being said, I’ve become very good at personal finance, crunching numbers, and money as a whole.
Secondly, disclosure has nothing to do with my blog. Why should I disclose how much I earn? On my blog, through my business or my salary? To me its redundant. Does it help anyone? Nope. Does it mean anything? Nope. We all got our lives, and how much we earn doesn’t define who we are. Sure, major mags. have an author profile, that talks about basic credentials, but never their salary.
Cheers!
Eddie
Eddie,
I see what you mean about terms of education.
One of my friends (in his 70s) is a financial whiz and was a pilot so having a Finance degree doesn’t mean much always!
Your blog has a lot of great content and you share good personal stories.
Steve,
Thanks for the nice compliment.
Often I get asked by dates and friends why I write….and its a two part answer…actually three part..
a) I used it as a once to get my self out of debt
b) I like the money
c) I enjoy offering people value of my personal finance experiences in my life. Sure, there are many great articles on The Star or Globe, but they are written by professionals who typically don’t connect to readers on a personal level. Rather, they are prim and proper, and sometimes with complex English.
Those are good to read, and I enjoy them to gain ideas at times, but I enjoy much more reading personal stories by a blogger of their struggles, accomplishments and life in general. I just feel I connect more.
Congrats on ‘coming out of the closet’ Eddie lol. I do think dropping the anonymity can be quite liberating and open more doors. It’s like the book authors who started with pen names but then eventually switched to writing under their real names.
I also disagree with the part about disclosure. I don’t intend to ever disclose how much money I make on my blog. I just don’t see how that is relevant. If you were specifically writing about investing or retirement, I could see it being more important, but not for the average personal finance blog. I think too much disclosure combined with lack of anonymity is quite dangerous.
Good point about education too. A lot of the advice shared on personal finance blogs is the kind of stuff that you won’t learn at any school other than the school of life. Just because it isn’t paid education taught by some professor, it doesn’t make it less valuable knowledge.
I probably should have stated my ideas on disclosure more clearly.
I meant that if you discuss a stock or a money saving activity that you have a personal story or disclose if you own the stock.
I would not expect blog owners to disclose their incomes (only if it pertains to their niche). If I talk about making money online, I would need to disclose how much I actually make per month.
Thanks for clearing up the disclosure part. I was going to agree with Eddie. If someone is offering advice on trading specific stocks they should disclose that they own it. In professional circles it’s expected so bloggers should to. Even if blogging anonymously.
I agree that an education isn’t required. I know many with finance degrees that can’t manage their own finances. Sometimes experience is the best teacher. I took a college class on how to pick funds a few years ago and although I learned a lot it definitely was little compared to what I had already learned through trading and studying (googling) on my own.
I enjoyed your article and agree that it’s better to not blog anonymously. I prefer to know the face behind the blog. But I don’t think it’s required. I think good advice can be heard and applied without knowing the author of it.
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Damn, you just had to use that ‘coming out of closest’ part, you strike me as the type that plays on ones words…
Hey that’s just the typical usage for the coming out of the closet line. To each his own Eddie lol. Glad to hear it’s opened up a lot of opportunity for you
Agreed Steve! I disclose who I am and even have a picture of me on my site. However you did remind me that I need to add my disclosure statement to my about page. I do not offer up investment advice on my blog, I leave that to the experts. It would be irresponsible for me to do so until I gain more experience there, even though I do alright in that area.
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Adam,
We all have different experiences and knowledge but it is good practice to let your audience know what you are trying to get them to understand.
A disclosure at least to cover yourself legally is a good idea, even if you don’t offer investment advice. If you do alright with investing though, it might be good to share some of that knowledge even if it is limited.
I agree but would like to defend myblog. While I am in my 20s I have bought a house and saved for retirement in tax advantaged accounts. I also graduated valedictorian of my college of business with an accounting degree and have a CPA license. I do state that my blog is not intended to be taken as personal advice so I think I have my bases covered. While I am not an expert on all topics i like to think i know more than most average people and know how to research on what I don’t know.
Lance@MoneyLife&More recently posted..Budget Basics: Know Your Income and Expenses
Some finance bloggers do definitely know their stuff and have more experience to share. Their is just such a wide variety of knowledge levels amongst bloggers. Even if they do claim to have sufficient experience, how is anyone supposed to verify that with just a first name to go on.
I completely agree with you Steve. Even though I have a degree in economics and I worked with some pretty complex investment portfolios while working at Bank of America I run my blog for the purpose of general information. I don’t like giving investment advice because I can be wrong. I don’t blog about being a debt expert because other than my mortgage I have never been in debt.
I think investing advice in particular needs to be verified elsewhere. That is the kind of stuff that someone can be recommending for their own personal gain, only to sell off their stocks once they convince enough people to help drive up the prices. I tend to stick to what I know as well…which might be why I only really do 1 finance post per week lol.
I agree with Steve for the most part. One of the reasons I started blogging was because so much information out there is from people that don’t really have much financial background.
However, I also agree with some of the others here…people are free to blog about what they choose and it’s ultimately up to the reader to decide for themselves as to whether or not they’ll take the information as authoritative.
Many of the blogs I follow merely revolve around that person’s journey/life and while they may talk about finances, I don’t really recognize their information as authoritative (so, I read just because I like the stories and I don’t mind hearing other people’s perspectives). However, there are certainly some blogs that I follow where it’s obvious the writer/owner has finance experience (and possibly education) and those are the ones I learn the most from.
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For sure. People’s personal finance journey stories can be fairly entertaining. Someone with strong financial knowledge probably won’t learn much from those people, but there are lots of people who would learn something.
The key is that the less knowledgeable bloggers don’t try to pass themselves as experts and cover lots of topics that they really know very little about.
I would also like to add that there are people with financial credentials who are in bad financial shape and shouldn’t be giving out advice either. I know someone who is a financial advisor who is extremely in debt and financially unstable. You may also have to take advice from some financial professionals with a grain of salt.
Holly @ Clubthrifty.com recently posted..Simple Tips for Staying “On Budget”
haha good point Holly. Just because someone has education or training in something, it doesn’t mean they know what they’re talking about. That doesn’t just apply to just financial professionals. There are experts in all kinds of fields where they are not really true professionals.
I don’t think the problem is unqualified personal finance bloggers giving advice; it’s people TAKING that advice without doing more research. The internet is filled with advice from all types of people, that’s why you have to cross-check things yourself.
I find the pf/debt/frugal blogs I like best are those that don’t dole out advice, but those that speak from experience. If a 20-something can tell me his tale of building his first emergency fund with honesty and transparency, I can appreciate that more than an industry expert with 20-something years’ experience.
You’re definitely right…it is a problem across the entire internet. There is so much information out there that people can’t simply assume that everyone is an expert on what they’re writing about. If it’s something important, you better take the time to make sure it really is good advice. I also agree that some of the more interesting finance blogs are actually the ones that aren’t giving much actual financial advice. Hopefully I can fit into that category or I’ll be in trouble before long lol.
I’m glad I do have a finance background and life experience in the subjects I write about or I would have felt very shamed reading that! As for the blogging anonymously, I hadn’t really thought about it. Maybe you have a point. I’m Adam by the way!
Money Bulldog recently posted..Want to pay off your debt? Why A Little Means A Lot!
Hi Adam. lol try being the one hosting this post and having lots of this stuff apply. If I didn’t know Steve better I’d think this was partly a shot at me. Then I remembered that I don’t give much financial advice in my blog.
I did think with your avatar you might feel the same way, I’ll expect your face in future!!
Money Bulldog recently posted..Longing For The Days Of Old Style Banking!
I actually did think about using my face as an avatar, but I like the branding of my logo better. Plus I don’t have many good photos to choose from that still look like me.
Modest Money has made some great posts over the past few years – it isn’t luck that he has attracted some great readers and comments each day! Very hard to duplicate.
Steve @ Grocery Alerts recently posted..Save On Foods – $2 Off Stouffer’s Lean Cuisine Entrees – Printable Coupon (Exp. July 18, 2012)
Past few years? lol…you must really be stalking me with my past work since this blog has only been up almost 6 months.
I personally enjoy reading various ways to save and hearing other people’s experiences. Personally, I’m not in a position to invest money, and when that time comes, I’ll consult an expert in person. I go on webmd sometimes to feel around and freak myself out, but I go to the doctor when I need an actual diagnosis. For me, personal finance blogs are somewhat similar.
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What?! web md isn’t enough for full diagnosis?! lol. Good analogy though Kaylan. The blogs give good basic knowledge, but not enough to bet the farm on.
Well I mean, accordingly to webmd, it’s a wonder I’m alive. Common symptoms are certainly an indicator of the worst possible diseases. That cough I have? No, its not a summer cold, its definitely indicative of tuberculosis.
Kaylan recently posted..Savvy Car Shopping
lol I know I’ve jumped to conclusions based on sites like that. You read some of the basic symptoms and end up convincing yourself that some other symptoms may be present when they really aren’t.
I agree and disagree. While I do have tax credentials (EA), I don’t have any financial credentials. Though I don’t give specific investment advice on my blog, I don’t think there’s a credential for budgeting advice, and I do speak to what has worked for me. I agree there is a danger for those who speak that their way is the only way, but my advice is based on experience, and through the experience of people I have helped/talked to.
But it is hard to read a blog where someone is telling me how to be a millionaire and they are digging themselves into debt, that’s pretty lame. Plus, how do you know if what the blogger is saying about themselves is even true.
So, I agree, take all advice with a grain of salt and weigh the consequences, but don’t discount others just because of their education.
Jacob @ iheartbudgets recently posted..Budget Confessions (and action)
Yep, you don’t know if the blogger is stretching the truth about their own experiences or credentials. I laugh when I see the blogs about becoming a millionaire. If they’re a millionaire, what are they doing spending their time writing some amateur looking blog?
I don’t discount people based on education, but I should probably take some advice less seriously. What worked for them might not necessarily work for me. They might’ve even just got lucky and their advice shouldn’t have even worked for themselves.
Interesting post, Steve! Just to be clear, I’m not a personal finance blogger. However, I have spent a great deal of time over the past few months reading and commenting on several of them.
You bring up some very valid points. The most crucial is the level of education and experience. I strongly believe that all bloggers should be have a high degree of knowledge and life experience in their chosen niche, and I’ve often wondered about many of the 20-something personal finance bloggers who are still in school and have little career experience.
Many of them are anonymous, and for good reason. However, there are a handful who have revealed their names and photos. Whether or not that helps make them slightly more credible is questionable.
My final point is that readers should always consider the source. Some PF bloggers present hard cold authoritative financial advice while others write about their basic personal matters with managing their household incomes. Readers have to be able to distinguish between the two, and decide which PF blogs best meets their needs.
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The 20 something bloggers do have less knowledge, but I think people their age can relate to them a lot better. So at least they have someone to learn from who is currently going through some of the same stuff. We can actually help all of those types of blogs by leaving comments and giving our take on their advice. I just think it’s awesome that there are so many more finance blogs out there. Even if some advice is less than perfect it at least gets people thinking about it and hopefully researching more.
I actually agree whole-heartily with your points here Steve. I can’t relate to someone who blogs anonymously either and I certainly don’t take advice about my finances from them. If they share a personal story or experience – then maybe, but most of the time I don’t even read the blog. I like what you said about having the experience before giving others advice about the subject. Like actions speak louder than words, experience speaks louder than knowledge.
For myself, it’s very hard for me to take advice from people who don’t openly share their finances, both the mistakes and successes. Obviously if they’re blogging anonymously, they ultimately don’t trust their readers. Which makes me wonder why I should trust them or their advice.
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Carrie,
I like that you totally put yourself out there on the blogosphere and this makes you stand out.
Good point about blogging anonymously means that they ultimately don’t trust their readers.
Steve @ Grocery Alerts recently posted..Save On Foods – $2 Off Stouffer’s Lean Cuisine Entrees – Printable Coupon (Exp. July 18, 2012)
I wonder how many nonbloggers feel this way when they come across an anonymous blog. I suspect that they wouldn’t even notice that it’s anonymous. So lots of people would still blindly follow their advice. Anonymous or not, finance bloggers have to be extremely careful about the advice they give out. Sure it’s the readers choice to follow any advice, but you have to assume that some people will follow whatever you advice you give.
At the end of the day, I think it’s important to separate personal finance fact blogs from personal finance opinion blogs. If you are looking for specific advice on retirement or investing; by all means, you should seek out blogs written by qualified individuals.
But if you are looking for new ideas, explanations of things that professionals take for granted, or a new viewpoint, then read my blog! Err, I mean, read an opinion blog!
There definitely is a difference between the two, but that difference is not obvious to the average visitor. So they might assume that the blogger is an expert. I wouldn’t be surprised if this niche actually became more regulated to protect people from this stuff.
I was thinking about this during dinner and I had another thought. The argument about education & credentials could be seen as at odds with the one about subject matter experts.
Look at it this way, I have a PF blog and a food blog. I don’t have any formal training in either (although I did get a merit badge for both money and cooking in the Scouts!). By the E&C argument, I would not be qualified to write about either topic. But the SME argument says that by the hundreds of meals I cook each year, I am qualified to write about food. Well, I may cook hundreds of meals, but I spend THOUSANDS of dollars each year. Tens of thousands, really. So I should be as much an expert at spending money as I am at cooking food.
Well I don’t know if lots of experience really makes you an expert at anything. People can repeatedly make the same mistakes during that experience and not even realize it. That’s where the education bit comes into play. That can right those mistakes and teach you the right way to do things. Still, that hands on experience can produce valuable lessons to pass on to others. People just have to realize that you could very well be making mistakes yourself.
I think this will definitely be a hot button post! I blog anonymously because I work for a financial institution – and I don’t think they’d take well to me blogging. I think if you’re doling out very specific advice – say, detailed stuff on tax laws, then yes, it helps to have your name and credentials out there. But I don’t think my stories of how I paid off my first mortgage fairly quickly or my awesome lunch ideas
are any less valid because I post anonymously.
mycancukbuck recently posted..Does what you buy define you?
I could see that working for a bank could get you in trouble!
BTW, what good lunch ideas do you have?
Steve @ Grocery Alerts recently posted..Starbucks Canada: Free Tall Starbucks Refresher Beverage on Friday, July 13, 12-3 PM
That is a problem about giving your name when you work in the financial industry and blog on the side. Many of those companies don’t want you to be giving advice publicly on the internet under your name. I know a bunch of bloggers in that position.
I try to stay mostly away from the financial advice and stick mostly to the money saving advice. I think I’m more qualified than most on that front although I have no official credentials
Good post Steve!
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@SavingMentor
Thanks for the kind words – you always have great guides and money saving tips!
Steve @ Grocery Alerts recently posted..Save On Foods – $2 Off Stouffer’s Lean Cuisine Entrees – Printable Coupon (Exp. July 18, 2012)
Really interesting post and comments. I’m a sceptic at heart, so I believe you should take everything with a grain of salt and do your own critical thinking, whether or not you’re reading a blog by a 20-something anonymous blogger (like me), or a 50-year old financial expert.
That being said, I do tend to stay away from offering advice. I like to think that I do more storytelling about my pf experiences than anything else. I guess it depends what your looking for out of a pf blog. If you’re looking for advice, you’re probably right about wanting a face, experience, education and credentials. If you’re more interested in the journey or reading about other’s experiences, those things might be a little less important and the quality of the writing might be more important over say, whether the person is an anonymous blogger or not.
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Yep, expectations are pretty different when your reading for advice or stories. Either way you can still gain something from hearing about that blogger’s experiences. You just have to be able to recognize who has built more trust. Even then, do your due diligence and make sure it is beneficial advice.
I’m not anonymous at all (my friends and family are regular readers…that don’t know what an RSS feed is–lol), I don’t claim to be an expert in anything related to finance (duh…we’re in debt!), and I never tell people what to do with their money. My husband and I started blogging because we realized that we were deep in credit card debt and we knew that we needed something to kick our butts and keep us accountable. It’s definitely helped us and we welcome any and all to follow us along on our journey, tell us what we’re doing wrong, give us tips, offer kudos, whatever. We are open-book kind of people….Jeremy will attest to that, I hope!
Anyway, I hope you’re not talking about little ol’ me and my personal journey blog, because I try not to ever be authoritative or condescending in my approach. I’m still learning myself, and I’ll gladly share all that I’ve learned that works, and even let you laugh at me for trying all the stuff that didn’t! I’ve got nothing to hide…except my kids’ pictures. That’s really the only thing we don’t share.
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You can say you are an expert about debt. You might still be in the middle of paying it off, but you’ve definitely learned some things along the way. And yeah I can definitely attest to you both being open book kind of people. You are always very open with sharing all kinds of personal details of your lives. I find that your blog is one of the more entertaining personal finance blogs out there. I enjoy reading it even though I can’t relate to having credit card debt.
I blog quasi-anonymously. Anyone who wanted to could find me, but I make it difficult just because I am currently searching for work. You’d be surprised at how many employers are concerned when people have successful blogs that express true opinions.
The only thing in this article I had a gripe with was that he said 20 somethings weren’t qualified to write finance blogs. I admit I’m not an expert and I don’t write about investing or retirement because I don’t have experience with that. I also market my blog to women my age or younger-because I feel like a lot of mistakes I made in the past could benefit them.
I like this post-I like the ones that express a certain point of view and stir up a bit of controversy. Great job!
Yes the part about 20 somethings is rather subjective. You would have plenty of experience from your own life to share. I don’t think Steve meant to put down the kind of bloggers that stick to mostly just personal experiences. I think it was more against the bloggers who cover every topic under the sun with limited actual knowledge.
Wow, I’ve been super busy at work and haven’t been able to keep up on my blog reading the past few days, and I missed this post when it first came out. Reading the other comments has been about as entertaining as the post itself. There are definitly things I agree with and some that I don’t, but overall this was a great post.
To a large extent, personal finance (at least “frugality”) is more about willpower and being able to prioritize and make tough decisions than it is about knowing how all the numbers work. I’m an accountant, have my Bachelor’s and an MBA in Finance, work in the banking industry, and know my stuff pretty well. But there is a lot more than just knowing the nuts and bolts; you have to be able to put the nuts and bolts together and make it all work.
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Good point Justin. Frugality really is more about putting strategies into practice and optimizing them, rather than just pure theory. Even then, different approaches work better for different people. So I think there is a lot of benefit in hearing how all sorts of different people make their finances work for their own personal situation. Then there is a much better chance of that advice helping someone with their own unique situation.
I definitely can’t disagree with this, but it’s really true of any financial advice. Most money in the media is written by someone with a writing or journalism degree, posting almost boilerplate copy of some press-release from a financial company that wants to sell you something. Meanwhile, some financial advisers are getting commission to sell you products and not necessarily the best products (aka whole life insurance, load mutual funds, etc).
The benefit of blogs is that there is some honest discussion going on (although not all of it). I’ve seen some people without a background that have a better handle on money than those with a background. I’ve seen those with a background that don’t have a clue about money or business. However, I’ve come across my financial writers in the media in the same boat.
It’s good to take all financial advice with a grain of salt, but I definitely wouldn’t single out bloggers as an information source that you should be more cautious of. All written advice should be weighed and measured.
JP @ My Family Finances recently posted..Is a Prepaid Debit Card a Good Way to Teach Your College Student about Credit Cards?
Well said JP. When receiving any kind of advice from professionals or any kind of writers, you do have to think carefully about what they are suggesting. Many of those people may be misinformed or have ulterior motives. Sometimes people just don’t have your best interests in mind. And sometimes they just don’t know any better that their advice may not be suitable for you.
I don’t care if the blogger has a degree in finance or not. I wouldn’t go out and make an investment decision simply because someone else did, I like to read about other peoples everyday lives. You can hold all of the finance degrees in the world and still be a dumb ass.
But when real people share their lives and you can sense the sincerity in their writing, whether they are anonymous or not, is more compelling that text book finance advice.
Maybe I’m just naive, but I would probably be pretty trusting of investment advice on an investing blog. I’d definitely trust that a lot more than a personal finance blog who does 1 or 2 posts about investing. I think there is some degree of accountability from an established investing blogger because they don’t want to harm their reputation. In the end though, I would do extra research to be sure it’s the right decision for me.
Anything that you read online needs to be taken with a grain of salt, especially if it is not coming from an authoritative source. Just because you read a blog post about personal finance does not mean that the strategy outlined is true and will work. Never make major financial decisions based on something you read online. Take some time and investigate it further.
Yep, anything written online can be complete bullshit. If someone’s got their reputation behind it, it’s usually more credible, but even that isn’t necessarily true. Sometimes the ease of publishing content backfires since people might not take the time to verify information.