I Apply My Own Advice

I was reading The Simple Dollar the other day when a reader had this question for Trent:

Do you think financial bloggers post their honest and unbiased opinion on personal finance? Are they following the same advice that they post for readers?

I've addressed this issue a bit in the past, but I thought you all would be interested in a more forward reply, so here goes:

1. I write absolutely what I think on this blog. If I like something, I say so. If I don't like something, I say so. If I say I'm doing this or that, I'm doing it. In other words, I'm not making this up as I go along. I'm honestly writing what I think (I know that sometimes gets me in trouble) and do. I think it's more interesting that way, it's more meaningful that way, and, quite honestly, it's easier that way. If I had to make things up all day long, that would be a real hassle! ;-)

2. I follow my own advice. This goes without saying after point #1 above, but I want to be clear. I try to maximize my income, spend less, invest with index funds, get out of debt (this one has been done for a long time now), etc. This is not a "do as I say, not as I do" blog, but rather a "here's what I do and I recommend doing the same or changing a bit based on what I've experienced." Rest assured that if I suggest you make a change, I'm making it too.

3. I write what I know will bring you wealth, not what I think will do so. Many blogs are written by people who are in financial trouble or those who are trying to figure things out and are taking you along for the ride. I personally love these as they are often so "real" and "personal" -- two traits that make them very interesting to read. That said, Free Money Finance is not that sort of blog.

I've already said that I have a high net worth, though I haven't said how much (but I have noted that it's not enough to retire.) As such, I'm writing from the perspective of what I KNOW will work. I'm not trying to figure it out along the way -- I have the basics down and the basics have helped me to generate a sizable net worth during my working years. That's NOT to say that I don't have a lot to learn, I do. But most of my learning these days is in the more-complicated areas of estate planning, detailed insurance products, tax planning and strategy, etc. These make up the "last 20%" of personal finance knowledge and while they will help to make a person more wealthy, the first 80% will make you wealthy on their own.

I'm posting this to simply let you have a better insight on where this blog is coming from and to let you know that if you apply the suggestions I detail in Free Money Finance, your net worth will grow. And that's the whole point of this blog -- to help people grow their net worths and achieve their financial dreams. I'm well on my way to financial independence, and I'm hoping to take as many as you possible along with me. ;-)

Comments

[J in FL]

FMF, thanks for making this statement... it's good to see and be reminded sometimes, that the advice and commentary that you provide does work. And that there are many good things to be learned from this blog.

[Rick]

FMF: Would you care to share how old you are (after all, I'm asking you, not your wife ;-) )

The reason I'm asking is that sometimes it's a little disappointing when I look at my own situation. I'm debt-free, other than my house, but I've only lived there 1 year. I have a long long way to go to be totally debt free. However, I'm only 24.

[That One Caveman]

I'm exactly the same way. I just had a post the other day explaining why I post my net worth every month - to show if the ideas and advice I share are actually working for me. If I suggest something I'm doing it, unless I explicitly say I'm not (such as if I found a good idea, but it conflicts with a different plan of mine).

If I suggest something and you see my net worth growing, it's a sign that my plan is probably working; and if it's slipping, there may be a problem with one of my suggestions. That way everything stays open and honest - the way any trustworthy personal finance blogger should be.

[Cinder]

It's a great question, and a good response. I don't have any problem following my own PF advice on a daily basis, business advice however, heh. It's good that I don't give people advice about business at times, but I suppose that's just the nature of the beast.

[Jon]

Do you take any issues with those PF bloggers who don't seem to regularly "practice what they preach"? Sometimes I feel like some PF bloggers are in the business purely for the money and that advice is just a byproduct of the business. I've also been struggling with finding new interesting content on PF blogs I subscribe too. All the information seems to just repeat itself over and over. Do you know of any sites that might be a bit meatier or is personal finance in the end just a very narrow topic?

[FMF]

Rick --

I've got a couple decades on you. :-)

[FMF]

Jon --

If a blogger says one thing and does another, personally, I'm not too interested in reading what he/she says. Same goes for someone who is giving out advice but really has no history/experience with the topic. At that point, it's just conjecture.

In the end, personal finance is a fairly narrow topic. If you do a handful of things well, you will be successful. Sometimes looking for something "new" or "exciting" can lead you down the wrong road.

[Jon]

FMF -

I don't want something necessarily more exciting, just a little meatier. I'm to the point where I have almost completely given up reading PF blogs because the are like a broken record. It's like many exist simply because people are lazy and can't figure out how to do a few calculations themselves.

[Four Pillars]

Jon - you need to look around more - there are blogs out there for everyone.