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Absolutes Are Only Good For Clickbait

The world of social media is a frightening place to turn for financial advice.
Meme of scary things including social media financial advice

There are lots of reasons for this, primarily the lack of knowledge and incompetence of most "financial gurus," but I'd rather focus on the absolute statements which are used to drive views, clicks, and sales. This has only been amplified by some platforms, like X, choosing to pay "influencers" based on impressions.

Meme of person dressing up as clown to give financial advice

A few common ones you may see, include:

  • "Married couples should only use joint accounts"

  • "Only invest in dividend stocks"

  • "Leverage is the only way to build wealth"

  • "Mortgages should be paid off as soon as possible"

  • "Never use credit cards"

  • "Real estate is the only investable asset. Buy my course to learn more!"

Toy story meme of Woody being concerned about bad financial advice

The world of personal finance doesn't include many absolutes, and the ones it does are fairly generic and boring, which won't drive many impressions or sales.


The Real Absolutes

Below are four actual absolutes on your walk to wealth:

  1. Avoid Credit Card Debt: At ~24% interest, avoiding credit card debt is a key to building wealth. If someone disagrees, they are simply wrong. This doesn't mean you shouldn't use a credit card, but rather that you should use one responsibly.

  2. Spend Less Than You Earn: You need to spend less than you earn, otherwise you wind up back at number 1.

  3. Invest: Spending less than you earn is critical, but if you are simply storing the excess under your mattress that won't help much. Building wealth requires some level of investment. This will vary based on your personal situation, but investing in assets is an absolute requirement for building wealth.

  4. Protect Your Assets: If you don't protect your assets then they likely won't last long. This protection comes in various forms and will partly depend on what you've decided to invest in. A few examples may include property insurance, life insurance, protecting your online accounts with added layers of security, private key storage for crypto assets, etc.

If you want to develop a personalized financial plan that goes beyond clickbait or generic absolutes, please schedule a free introductory meeting! For just $5/day, it’s the most affordable way to access professional help.

Disclaimer: The information in this post is provided for your convenience only and is not intended to be treated as financial, investment, tax, or other advice. The information is intended to be educational and is not tailored to the investment needs of any specific individual.  It is also not intended to be relied upon as a forecast and is not an offer or solicitation to buy or sell any securities or to adopt any investment strategy.  The opinions expressed are those of the author.  Reliance upon the guidance and information in this presentation is at the sole discretion of the individual.

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