6 Reasons Why Personal Finance Gurus Are Wrong

For as long as I can remember, personal finance experts have been yelling at me – or at least at their audience. Whether it's a cropped hair and blazer-wearing woman or a bald, glasses-clad man, there are common tropes among personal finance gurus. These tropes SELL – literally. They help personal finance gurus sell books, podcast ads, TV airtime, and more.

But do you know what else these tropes do? They make us feel terrible.

In this post, I’m rounding up six reasons why personal finance experts are wrong–allowing you to spot these tropes when you see them–and inviting you to find better ways to improve your money mindset, cultivate financial empathy, and use money for good.

Money Myth #1: If I Can Do It, So Can You 

This personal finance myth is usually blasted out of a megaphone by someone in the Boomer generation. It’s the old-school personal finance “expert” who ignores why saving up an emergency fund, buying a house, or paying for college out of pocket were possibilities for them but not for current generations.

The idea that "if something worked for me, it can work for you" sets you up to feel like garbage because it doesn't account for the unique circumstances that allowed them to save up or negotiate a raise. We're all different, and that's a good thing. Life experiences vary greatly, and it's ridiculous to claim that because one person can do something, everyone can. This advice ignores the nuances and complexities of individual financial situations and can lead to feelings of inadequacy.

Money Myth #2: Rich people work harder 

Working hard doesn’t guarantee more money. Many people are working multiple jobs or side hustles, busting their a**es but aren’t rich. Wages have been stagnant (when adjusted for inflation) for over 40 years!  

Plenty of folks are working two, three, or four jobs, plus side hustles, and they’re still struggling. It’s not due to a lack of work ethic. The idea that rich people are where they are solely because they worked harder is irritating because it overlooks the reality that hard work often isn’t associated with financial success.

Money Myth #3: Secrets people don’t want you to know 

These people sell "get rich quick" tactics like crypto, individual stock picking, or investing in a real estate course that promises alchemy. The truth is, "getting rich" is a slow, boring process: spend less than you earn, pay down high-interest debt, find the highest-paying job you can, and invest in plain vanilla low-cost index funds.

If it were really that easy to pick a few stocks and get rich, we'd all do it. The reality is that most of us should be investing in low-cost index funds, which tend to outperform individual stock pickers or mutual fund managers.

A good rule of thumb? If you can't explain it to a friend, it's probably too complex for your portfolio.

Money Myth #4 Schadenfreude

Schadenfreude is a German word that loosely translates to “taking pleasure in someone else's pain.” Many traditional personal finance experts have built their brands by tearing down their audience and leveraging personal shame.

Think about the flashy stories you hear: "Mother of three blows it all on a sailboat" or "College student spends all their loans on brunch." These stories highlight personal flaws and make you think, "How could they be so dumb?" This kind of content, exploiting personal pain, is dangerous, but many in the “expert” space found out that it makes for great ratings and virality.

Money Myth #5: Self-Made Myth 

The myth is that people who become multi-millionaires or billionaires do it independently. 

Many of these so-called self-made people were born several rungs up the ladder and had personal connections or loans that allowed them to do what they did. When we think of billionaires like Bill Gates, Jeff Bezos, and Mark Zuckerberg, we often overlook the substantial help they received. Bill Gates' mom made the introduction to IBM, Bezos’ parents loaned him $245,000 (equivalent to $505,000 today), and Zuckerberg took a $100,000 loan from his dad.

These folks didn’t start from nothing. They were several rungs up the ladder, with significant family support and network connections. They also share societal privileges such as race and gender, which played a role in their success.

Money Myth #6: It’s the little expenses that hurt people

The myth that oat milk lattes, avocado toast, and enjoying your hobbies are the things that are getting people into trouble financially. 

Small expenses aren’t sinking your financial ship. Sure, you could cut out that twice-a-week latte habit and save $600 in a year. And, yes, that $600 saved is important, but it’s not the difference between having a down payment for a house and not having one. 

According to the Bureau of Labor Statistics, the three biggest expenses for Americans are housing, transportation, and food. It’s worth pausing to consider how systemic issues impact these major expenditures. When we look at housing—the largest expense Americans face by far—systemic factors contribute to the cost. Restrictive zoning laws, limited land availability, emphasis on parking spaces, and increasing construction costs have all affected the housing affordability crisis we face today. Even with incentives for developers to build more affordable housing, many opt out due to red tape, zoning regulations, and, to be frank, lower profit margins associated with such projects.

Long-term financial health is more often affected by bigger expenses and systemic factors instead of your “lack of willpower” when you buy yourself a treat at your local cafe.

Do This Instead: Healthy Money Mindset

If personal finance advice makes you feel like garbage and doesn't consider your lived experiences – mental health, birthplace, or access to financial products – it's time to unfollow and let go of those books (maybe even repurpose them as kindling!).

Instead, find educators who preach financial empathy and embody a healthy money mindset. Financial empathy means understanding and recognizing the emotional impact of money issues on one's life and providing judgment-free support and advice. Financial empathy educators also understand that our financial realities don't exist in individualistic bubbles; they are influenced by our communities, laws, policies, and systems. Seek advice that considers you as a whole person and avoids exploiting your pain.

Financial wellness isn't about shame or quick fixes. It's about understanding the systems impacting your financial health and finding realistic, sustainable ways to manage your money. It's about giving yourself grace and recognizing that your financial journey is unique and valid.

At Mind Money Balance, we believe in the "Money for Good" philosophy. Money is neutral, but when we take ownership of our personal finances, we create positive ripple effects in our lives and communities. "Money for Good" can mean saving up for an emergency fund or having enough to contribute to causes that ignite your passion.

Embrace financial wellness by surrounding yourself with empathetic educators, seeking holistic advice, and prioritizing your well-being.