Financial movements like FIRE, fast banking, and strategies promoted by personal finance influencers like Dave Ramsey and Suze Orman often play a significant role in shaping families’ financial strategies. But this advice is a double-edged sword in the eyes of many professional financial planners.
These financial strategies can encourage people to address their financial situations and educate themselves, but blanket advice can sometimes do more harm than help when applied to a person’s unique circumstances.
“They’re giving advice to the masses, so take it with a grain of salt,” says Christopher Swan, founder and chief financial planner at Swan Capital. “General advice helps people get started. I’m okay with sitting down with a client who is a fan of Dave Ramsey because he has done things to address his debt and make things better. The downside is that those definitive rules are not always the best.”
The following popular personal finance strategies include nuggets of wisdom as well as some drawbacks, experts say. Read on to see which might apply best to your situation.
Financial Independence Early Retirement (FIRE)
the FIRE movement
throw the traditional budget out the window. Instead, proponents of the movement practice extreme saving and investing with the goal of retiring much earlier than usual.