Reminder: Why You Shouldn't Listen to Me

Based on a few comments I've received recently, people seem to think that I'm a financial "expert" (ugh!) of some sort. Let me remind those people and the rest of you of this post, the fourth post written on this blog and published well over four years ago. The highlights of my "financial qualifications":

• I am not a financial expert.

• I do not have a professional degree in finances. 

• I do not work in the financial products industry. 

• In other words, you may find my advice to be worth what you pay for it (the “free” in the name of the site.)

In addition, I also said the following:

• I also promised to tell you why you should listen to me instead of listening to them (the financial media).  The reason: You shouldn’t.

• In other words, use this information at your own risk.

Just wanted to be sure we understand each other. I am not a financial expert in any form or fashion. I'm simply a person who has a financial blog that has some readers. If that's a qualification to be a financial expert, heaven help us all.

It is true, though, that the day after I shared the above, I also listed some reasons you may want to read this blog. Here's the most important one:

Over the past 20 years, I have managed my own finances so that my net worth now places me in a very good position versus the average American.  I started with nothing and while I’m not “rich”, I am doing well.  And what I did (and continue to do) can be done by anyone.  That’s what I’ll be sharing here.

I've never detailed my net worth on this blog before, but let's just say it's in the top percentiles based on this and this -- the best numbers I could find on the subject. If that has any sort of meaning to you, then maybe I'll say something that can help you. Then again, maybe not.

But let me state the following so we all know where we stand:

• I am not a financial expert of any sort and do not hold myself out to be.

• I simply write about what I've done/am doing financially. This may or may not work for you. So far, it's turned out well for me.

• It's likely that much of what I write won't work for you since you're not me. That's fine. Take what you can use. I'm simply hoping to leave you better off financially than you were before you read this blog.

• That said, you can't simply pick and choose from what I say and expect the same results. For instance, if you spend the way I spend and invest the way I invest but don't grow your career like I have, it won't work (or at least work as well). Or if you grow your career like I have but don't spend the way I do, it won't work (or at least work as well). In other words, don't blame me if you take one part of my thoughts and chuck the rest of them and don't get the results I've gotten. It doesn't work that way. I know most of you know that, but some commenters seem to imply they can do this (and even that I'm suggesting this is ok) and all will turn out well. I'm saying clearly, it will probably NOT turn out well!

• If you disagree with me, that's fine. You're free to say so (evidence: note some of the comments I leave up). But saying I'm an idiot, that my thoughts are meaningless, and so on isn't 1) kind, 2) right (see the net worth info above) or 3) helpful to anyone. If you wouldn't say something if people knew who you were, you probably shouldn't say it just because you can do so anonymously on the web. And for those of you who can't seem to control yourself, I remind you of my comment policy.

Now that we're all on the same page, we'll return to our regularly scheduled programming with the next post...

Comments

[traineeinvestor]

Well said.

If people want financial advice they can go to a professional financial planner and pay for it.

Or, if they want to be really radical about it they could take responsibility for their own finances.

[neal@Wealth Pilgrim]

I happen to be a professional and I LOVE this blog.

Your posts are informative, well thought out, educational and provocative.

You add a new prospective and I'm not blowing smoke when I tell you that most professionals would learn a ton by subscribing. I know I have.

[rdub98]

FMF,

I would like to offer a rebuttal to your comments about using some of the stuff you say and not others.

I have been reading this blog for over two years now. I have taken bits and pieces of what you mention on your blog and it has helped me 1) reduce both the number and amount of debt that I have (I now only have a mortgage and a Home Equity loan), 2) learn to pay off my credit cards each month, 3)spend less than what I earn (or at least put more effort towards it), and 4) build up an emergency fund. So my rebuttal to you is that I CAN take bits and pieces and have it work out well (maybe not as well as you, but VERY well for me).

I love reading this blog and will continue to do so. Thanks for some very informative posts!

[Spin The Deal]

Finance professional or not, your blog shares common sense advice and real-life experiences that reach out to a wide audience of readers. Some advice may not be pertinent to every reader, but it is all solid ideas for reducing debt and living within your means, and the best way to learn that is through personal trial and error, which you have. I do have a finance degree, and having read your blog for years, I've learned a great deal of things that have helped to whittle down my debt to only a mortgage while accelarating my asset growth to increase my net worth.

Bravo to you FMF, and keep the posts coming!

[FMF]

Neal and Spin --

Thank you both for the kind words.

rdub98 --

I guess I wasn't very clear on that part. For more sophisticated readers, taking a bit here and a bit there can certainly work. That's what I do -- taking this from Smart Money, that from CNN, etc.

What I was tring to address is the person (and there are many) that want the results I talk about without following all the advice. For instance, someone who says "I asked for a raise and didn't get it" but they didn't follow what I said to do to DESERVE a raise first. In this case, you can't get the results without doing BOTH pieces of advice.

I know, it's not a great example, but I think it illustrates the point.

[rwh]

I don't know man. Not only didn't you call the 50% drop in the S&P back in 2007, but you didn't even warn us the Red Wings would lose game 7 at home!

[FMF]

rwh --

Ha! ;-)

[rdub98]

FMF,

My words were meant to be kind too. The rebuttal was supposed to be humorous. Sorry.

[FMF]

rdub98 --

I didn't take them as being unkind -- just needed a bit more explanation. It was a very good point you brought up.

And...thank you for the kind words as well. :-)

[J. Money]

wait, so are you a professional or not? ;)

[Benny]

Obviously some comments spurred this post. Just wanted to say that I have followed your blog for some time and really enjoy it. I'm sure that I speak for many others, since I have turned on a few friends to your blog and you have a small loyal following among us. So disregard the few outliers causing you any heartache.

I especially appreciate when you are able to update us on financial statistics as you did in this post, it is great for comparison sake. However, the two examples you gave were pretty dated. If you are able to find something more recent in the near future we would appreciate you to post it.

Thanks again (I don't usually respond, just read, so I had a lot to say at once, sorry for the length...)

[FMF]

Benny --

I searched and searched but didn't find anything newer that said it the way I wanted to. CNN Money has a net worth calculator, but it does it by age and income (versus just showing averages), so it wasn't the data I wanted exactly.

If anyone does find newer net worth info, please let me know.

[Eugene Krabs]

I am glad that you are man enough to come out and say that, because there are some who offer lesser quality advices in their blogs but do fancy themselves as experts.

Regardless of qualifications, I've always believed that it's the quality of the information (and to some extent, the entertainment value) that matters. If I become more informed (and even entertained) than before, it doesn't matter to me what kind of qualifications you may or may not formally have.

Write on!

[FMF]

Eugene --

Thanks!

I think I do need a lot of work on "entertainment value." :-)

[Liz]

To the people who want to read your blog and then offer un-kind words or what-not, I give to you the advice from my father... "If you can't say something nice, don't say anything at all." Just ignore the ignorant - those people have their own problems. :)