The One Answer to Every Financial Question

Here's the one answer that applies to every financial question no matter who asked it, when they asked it, and what their personal financial situation is like:

"It depends."

Every personal finance issue is just that -- it's PERSONAL -- and an answer to any question a person has about anything (retirement, saving money, buying a car, etc.) always depends on their personal desires, goals, and situation. That's why the answer to any money-related question is always, "it depends."

Now there are some "rules of thumb" that apply to the vast majority of people, and that's usually what personal finance writers and bloggers cover -- what works for most people (or at least what they think works for most people.) However, there will always be exceptions to this since people are different and their situations are different.

Here are a few examples from Free Money Finance to illustrate this point:

• I love index funds (in case you haven't noticed.) Do I think they'll work for most investors? Yes, I do. Will they be the best investment option for everyone? No, they won't.

• I have a favorite/recommended credit card that earns me a bunch of money every year. Will it do the same for most people? Sure. Is it the best credit card for everyone? Nope.

• I have what I consider to be a great formula for buying a house. Do I recommend it for most people? Yes. Will it work for everyone? No.

• I prefer to use a CPA to do my taxes. Do I recommend the same for most people? Yes, but only if they're in the same situation I am. Will it work for everyone? Certainly not.

In some extreme cases, I think you could even argue that it's better to spend more than you earn. See how far the answers can go from the "accepted" or "best" way of doing things?

So please remember that while I give my thoughts on what I think will work for most people, there will be exceptions all the time. But at least I do give my opinions. It makes for a much more interesting blog than writing "it depends" for five or six posts a day, doesn't it? ;-)

Comments

[twins15]

"It makes for a much more interesting blog than writing "it depends" for five or six posts a day, doesn't it? ;-)"

That depends! :)