Summary

The article cautions against blindly following financial advice from individuals with large social media followings or those who claim to have quick success, emphasizing the importance of critical evaluation and personal research in financial decision-making.

Abstract

The author of the article expresses concern over the prevalence of misleading financial advice from so-called "gurus" on social media. These individuals often have a significant number of followers and may present themselves as successful through flashy displays of wealth, such as luxury cars or large sums of money earned quickly. The author warns that such figures may not have genuine expertise and could be more interested in selling products than providing helpful advice. The article highlights the role of luck in financial success and the dangers of assuming that someone's success is solely due to their strategies or hard work. It also points out that personal experiences and anecdotal evidence, often shared by these influencers, may not be applicable or effective for everyone due to differing life circumstances. The author, while acknowledging their own influence and sharing of personal finance experiences, emphasizes the need for a scientific basis in financial advice and the importance of considering individual contexts. The article concludes by encouraging readers to critically assess financial advice, conduct thorough research, and tailor any advice to their unique situation, rather than following generic tips from popular figures.

Opinions

The author is skeptical of financial advice from social media influencers, especially those with a large following who may not have legitimate financial expertise.
There is a critique of "gurus" who prioritize selling products over the well-being of their audience, potentially leading followers into financial loss or debt.
The article suggests that financial success stories often highlighted by these influencers can be misleading, as they may be due to luck or circumstances not disclosed to the audience.
Personal experience is valued but should not replace scientifically-backed financial advice or be assumed universally applicable.
The author believes that individuals should be wary of one-size-fits-all financial advice and should instead seek out personalized strategies that consider their unique financial situation and goals.
A call to action is made for readers to think critically, do their own research, and not be swayed by the apparent success of influencers without understanding the full context of their achievements.

Not Everyone Who Talks about Money Is a Financial Advisor

Be careful of who you take advice from.

I love to read about money.

I am a financial lover, so I am always looking for ways to improve my finances. I also love to talk about how some personal tips worked for me, so people around me can use my success as inspiration.

However, lately, I have been reading some articles that are just blowing my mind. The advice was so ridiculous that I was shocked that someone even wrote that.

What surprised me most about that was the number of people who agreed for the simple fact that the guy who wrote that has a large number of followers.

This makes me think that there are still people who believe in big influencers just because they have “a great presence in social media” without knowing that they can negatively impact their lives.

For this reason, I feel obliged to tell you: Not everyone who talks about money is a financial advisor.

Even if he has a large following, or he has shown you that he has a million-dollar in his bank account, or even if he shows you that he earns thousands trading.

Many “gurus” just want to sell you something; they don’t care if their advice really works.

If you liked to watch business videos on youtube in 2015, the chances are that you saw the famous ad by Tai Lopez showing his garage, where he shows off his Lamborghini and talks about the importance of mentors.

Although this was probably just another lame ad you can watch while waiting for your actual content, it blew up all over YouTube and paved the way for an invasion of fake online gurus.

These types of “gurus” were not trying to teach you anything.

Their ultimate goal is to get you hooked on their product. To swipe your credit card and make them richer while you become poorer or in more debt.

Right now, there are still a lot of those types of fake gurus. Even if they don’t try to sell you something, you still watch their content and give them the views they need to keep posting their lies.

They don’t care if their advice really works. As long as they have the views they need to pay their rent, they will write what you want to read.

“Gurus lie to you because what they do is a business. It’s not about helping people at all; it’s about them and their ego” — Tim Denning

So following the advice of a person whose ultimate goal is to sell you a course will probably make you lose money. They usually don’t have the expertise they say they have, and they also probably didn't earn money the way they said.

Luck plays an important role in many cases.

I learned about trading from a friend. He showed me how he made $10,000 in an hour, and I couldn’t believe it. At that time, I had to work almost a year to see that same amount of money.

“I need you to teach me” was the first thing I said, and I bothered him for a whole month until he decided to show me his “secrets.”

Turn out that was a stroke of luck.

We both lost all the money we put into the broker, and there was no real analysis of the stocks we traded. I had to start learning by myself and make my own decisions to get that money back.

Luck plays a critical role in many cases. So the success that many preach does not necessarily mean hard work, and probably many don’t even know what they are doing.

Wanting to get advice from someone just for the results you see is dangerous. It can cost you a lot of money if you don’t analyze what they are really doing to get the results they have.

It’s like if I told you that dogecoin is the future because I earned 10,000 dollars with them on the weekend. If you don’t know the context of that money, you can believe me and put all your money there. Turn out that I probably earned it by trading 100,000 dollars on the weekend that Elon Musk tweeted about it.

Not everyone with a large following is an expert.

I have a total of 10,000 followers between my social networks and my blogs. Many people consider me their mentor because they know the success I achieved. Also, I have helped many people make financial decisions over the last 3 years.

However, I have never studied finance on a professional level.

All the advice I have given has been from personal experiences and my own perspective. And I know that many of you will think that “experience is better than any book or tutorial,” but this is not always the case.

Although I always try to have a scientific basis or another article by an expert that confirms what I am trying to say, not everyone is like that. Many people invent success stories and tips to be seen as innovative in the area.

Also, the conditions in which something can work depends a lot on the environment. This is why advice such as “Poor people are poor because they want to” cannot apply to everyone.

“I became a millionaire by getting up at 4:00 am every day, do yoga, drink a lot of water, and then going to work in the multimillion-dollar company that my dad created.”

For that reason, you cannot follow 100% what somebody tells you just because it has worked for them because the experience will not always be the same. They were born, work and do things in totally different conditions than you could have.

Final thoughts

You need to be careful of who you take advice from.

Many people will tell you the right way to do things, but you are the one who should know if that advice can really apply to your lifestyle.

Some tips can guide you, but not necessarily following them will be the key to success. If you don’t do your research properly after receiving advice and don’t take the time to find out if it can actually work, you will likely lose a lot of money.

Sometimes it seems easy to follow financial advice we read from big gurus instead of following our instincts. In the end, they are the one who looks rich. But the reality is that those tips are not always what we really need. General money advice is based on a different perspective from people that have another way of thinking.

When it comes to following a piece of advice, I always try to follow this mindset:

“When you read something, you need to individualize it. You have to design your own approach that really applies to you. You can read and learn about other gurus on a general level, but you must design your own personal path.”

This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.