You should follow the advice of financial gurus.

“Follow the advice of financial gurus” is a financial fallacy primarily because personal finance is just that - personal. Everyone’s financial situation, goals, and risk tolerance are unique and diverse. While financial gurus may share helpful insights, viewers should not blindly follow advice without considering their personal circumstances. Additionally, these gurus may not be certified financial advisors and sometimes their advice can be influenced by financial incentives linked to promoting certain financial products or services. Hence, it is important to cross-verify any advice with other credible sources.

Personal finance can be complicated and intimidating. When a person who is portrayed as an expert gives advice, it seems like a simpler and quicker route to financial success. We may think, “If it worked for them, it should work for me too.” But remember, what worked for them might not work for you because of the uniqueness of your financial situation.

An appropriate financial practice would involve creating a financial plan based on personal circumstances and long-term goals. It is advisable to maintain a monthly budget, save for emergencies, pay off debts, and invest wisely, after gaining a good understanding of your investment choices and the risks involved. Demonstrate patience during market downturns and do not be driven by fear or greed. Always seek advice from certified professionals, keeping your personal situation in mind.

Further readings:

  1. “The Richest Man in Babylon” by George S. Clason. Book Link

  2. “The Only Investment Guide You’ll Ever Need” by Andrew Tobias. Book Link

  3. “Personal Finance for Dummies” by Eric Tyson. Book Link

  4. “Investment style”. Wiki Link