Most Financial Advice is Worthless

January 29, 2019 by Lily Wright

Over 39.7 million Americans live in poverty, and millions more struggle to make ends meet. We are conditioned to think our financial struggles are simply our fault, and that all of our struggles can be related to poor decisions we have made along the way. While that may be true for some, the vast majority of us never had a fighting chance.

Most of the world’s population lives on anywhere between $2 to $10 a day, meaning saving any amount of money is simply not an option. While the intricacies of this issue are not suited for a short blog post, wealth inequality is the largest reason financial advice is simply not helpful to most people.  If you’re like most Americans, you’re probably working long hours for low wages which is not a longterm strategy for anyone. With this in mind, most people who struggle with money struggle because they their finances are positioned for the short term. This way of living contradicts most financial advice. But the problem is that longterm financial strategies are luxuries for most of us.

Let’s face it – the reason most people struggle with their finances is not because they buy too much coffee, or because they splurge on clothes, or spend too much on unnecessary, fancy vacations. These are distinctly middle-class problems that are rooted in a mentality that suggests you deserve to have more just because you can make it happen. But the majority of working Americans simply do not have the means to even consider those extraneous, silly purchases; they’re simply trying to make ends meet.

The most recent data suggests that there are 42 people who hold as much wealth as the poorest 3.7 billon people in the world. This means that just 42 humans could end world poverty seven times. Let that sink in.  Financial advice is typically worthless and won’t help the vast majority of us.  The real problem is rooted in the economical disparity and wealth inequality that makes most financial advice irrelevant.

 

Get Namu today to help with your finances!