5 Things Personal Finance Experts Get Wrong
As someone who makes a living writing about finance, I’m the first to admit that so-called money experts often get things wrong, especially when giving generic personal finance advice.
For example, every consumer is unique. They have a unique set of financial circumstances and challenges. So, why should we expert one-size-fits-all advice on money to work for everyone?
I recently came across a viral Facebook post that hammered home this very point. The main point of the post was to have empathy for those struggling with their finances.
And it offered several examples of the different ways that not everyone’s personal finances are the same.
1. Not everyone has two incomes
It’s very hard for single people or households with only one earner to make ends meet. Not everyone is fortunate enough to have the earnings potential and financial security of dual incomes.
So, when financial experts start lecturing consumers about paying off debt quickly or have six+ months of savings for emergency, those things are often easier said than done.
Maybe someone has a lot of debt because of medical expenses. Or, maybe they simply can’t afford to set aside that much money from their paycheck. Let’s stop shaming consumers for money problems when they might be doing the best they can with what they have.
2. Not everyone has help
Some people only have themselves. They don’t have affluent families with the means (or willingness) to help them out of financial jams.
Likewise, not everyone has the same kind of upbringing when it comes to personal finance best practices. Someone might not always make the best money decisions, but when you consider what they’ve been through, they have actually done fairly well, considering.
So, if a person turns to credit cards or payday loans for emergencies, even though that’s not a best practice, it may be their only option.
3. Not everyone has money saved up in a savings account to fall back on
I kind of touched on this in the first point. Not everyone has the means to save a lot of money for emergencies. Even though it’s considered a best practice to have at least six months of expenses saved, some consumers just can’t do that.
We shouldn’t act like its 100% caused by overspending either.
For example, the rising cost of housing, rent, and really everything has contributed to tighter budgets for consumers across the board. It isn’t that everyone who lacks savings lacks the willpower to save money. It may simply mean that every dollar they make must be spent just for survival.
4. Every parent doesn’t have a reliable babysitter or vehicle
Sometimes, people are judgemental about parents who don’t seem to earn enough money to support their families. Well, here are a couple of reasons why that may be.
- Not every parent can afford a reliable babysitter.
- Not every parent can afford a reliable vehicle.
Unless you have a work from home job, then you are going to have to commute to work. And you can’t just leave small children at home to fend for themselves. You also need daycare services or at least a responsible, trustworthy babysitter that you feel comfortable with leaving your kids in their care.
If you don’t have access to those things, then your ability to earn more money is severely limited.
5. Some people live paycheck to paycheck
As mentioned, often through no fault of their own, many consumers unfortunately live paycheck to paycheck. And that can make it very hard to reach financial goals, like paying off debt, saving for retirement, etc.
Simply telling someone to find a better paying job or cut their spending is not only tone-deaf, it’s not always realistic in every situation.
As a finance writer, my goal is to help people make money and manage it better. But I recognize that those who are struggling financially deserve respect and grace. This world is hard enough. We don’t need to add to someone’s plate unless we can actually help them. No one needs to carry extra negatively.
It doesn’t cost us anything to show kindness. In fact, most people are already doing their very best.
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