There's a lot of talk these days about personal finance, how to spend money wisely, how to save money, invest money, and grow your wealth. You may have even seen some of these videos with personal finance experts giving their advice on how to get rich quick. But can you r trust what they're saying? Can you take their advice and expect to see results?
There are a lot of self-proclaimed experts, personal finance gurus, and digital influencers out there but who should you trust when it comes to learning about money? Let’s talk about where to learn personal finance and why it’s important.
What is personal finance and why is it important?
Personal finance refers to the management of an individual’s or household’s funds. This encompasses budgeting, banking, saving, investing for retirement and other goals, and estate planning. These activities help the individual or household plan and make the right decisions to achieve their financial and life goals.
But why is personal finance important? Finance involves numerous moving parts, each requiring strategies. Personal finance teaches individuals about crucial finance principles, empowering them, especially those without a background in finance, to manage their money effectively and, consequently, achieve financial security.
Where can I learn personal finance?
A quick search online will reveal hundreds of articles, videos, gurus, and so on claiming to hold the secret to growing your money. How do you know if the advice you’re getting is credible? Here are a few important things to consider:
Who can teach you about personal finance?
When it comes to determining where you can learn about personal finance, it's important to do your research. Losing your hard-earned money is a costly mistake to make, so it’s best to be discerning about where you get financial tips!
When getting financial advice, it's important to look at the qualifications of the person or organization behind it. Do they have experience in the field? Are they well-respected in the industry? Do they carefully explain why financial education matters?
Checking qualifications can help you avoid making a mistake that could cost you money. For example, before putting money in a new stock, you’ll want to check if the person recommending it has the background and experience to do so.
Always fact-check
It's always important to be able to identify which source is reliable. When scrolling through financial experts on social media or watching them on YouTube, you need to discern which ones are credible and which ones aren’t.
First, look at the evidence they provide to support their claims. Are their arguments backed up by data and research? Are there different sources cited? Or are they just giving their opinion without cross-checking with other sources? Facts differ from opinions. Financial gurus are expected to give their opinions on money matters, but you also need to make sure they’re grounding these opinions on facts.
Second, consider the person’s qualifications. Do they have the expertise to speak on this topic or are their qualifications fabricated? An expert on a subject matter must have the credentials and experience to prove that they are knowledgeable in the field.
Look for things like certifications, workshops they’ve attended, their current job, and what they took in college so you can gauge the depth of their knowledge of finance.
Third, look for any biases. Do the person’s statements seem skewed in favor of one side? To formulate an informed decision, a source must consider both sides of an argument and lead you to the best decision. If it seems like they’re trying very hard to push a product, especially if they get something from promoting it, then it’s best to steer clear from them.
Finally, trust your intuition. Instincts are based on our previous experiences and cues that our subconscious picks up on. So, if something doesn't sit right with you, it's probably because your gut is trying to tell you something.
Red flags to avoid
Before following a financial advisor's tips, be critical of what they're saying. There are red flags that can tell you whether or not a person is credible.
Keep in mind that there’s no magic formula for success. It takes time and effort to grow your money. Anyone who tells you otherwise might be trying to take advantage of you. Instead of looking for a quick fix, take the time to educate yourself on personal finance and how to make smart choices with your money. It may not be as glamorous as a get-rich-quick scheme, but it's a much more reliable way to achieve financial success.
Make sure you do your own research. If anyone tells you to invest in something, look into it yourself first. After all, you'll be dealing with the consequences – whether good or bad. Remember, there are no shortcuts when it comes to investing. The best way to grow your wealth is to take the time to learn about different investment opportunities and make informed decisions.
It’s always important to be skeptical of anyone who seems more interested in selling you something than giving you helpful advice. If you're feeling pressured to buy a product or service, it's probably best to walk away. The last thing you want is to end up with something that doesn't meet your needs.
Can personal finance experts be trusted?
As with anything, it's important to do your own research and decide if the advice of a personal finance expert is something you want to follow. There are a lot of different opinions out there, so trust your gut and go with what feels right for you. At the end of the day, the best way to learn about personal finance is to experiment and find what works for you. There's no one-size-fits-all solution, so don't be afraid to try different things and see what works best for your unique situation.
When it comes to looking for someone who can teach you about personal finance, you need to do your due diligence. Consider their credentials including their educational background, current work, and track record such as how much they were able to make through investing and then determine for yourself whether this person is credible and can help you on your financial journey.
The best way to determine if a financial expert’s advice is worth following is to do your research and see what that particular expert recommends for your personal situation. It’s also best to subscribe to different reputable sources like financial publications, so you can balance their opinions yourself. At the end of the day, it’s up to you to decide whether or not to take financial advice from anyone.
Ready to expand your personal finance knowledge?
Be careful where you learn about personal finance; always research and analyze if the advice is suitable to your situation and goals. Metrobank’s pool of finance experts is here to continuously provide you with informational articles to guide you through good money habits, budgeting, saving, investing, and wealth management.
You can always count on Metrobank to help you make the best financial decisions.