Top 10 Controversial Personal Finance Topics
And some answers to them (Plus 1 Bonus I'm adding, but top 11 doesn't have the same ring)
At it’s core, personal finance is simple.
Spend less than you make so you can save and invest. Give yourself time to let your money compound and grow. Have a plan and don’t do dumb things that don’t align with with your goal.
Like most things in life, if you do the big things right then almost everyone will find some level of success. Maybe you don’t wind up super wealthy without a little luck along the way, but nail the big things and you will come out well-off.
But everyday you are faced with numerous financial decisions. And if you ever stopped to read a financial tweet, bombarded with gooroos pushing some ‘secret’ to being wealthy (just come into the funnel and get small tidbits along the way till you buy a $5k course that tells you to just budget harder doggie).
So saying something simple like ‘spend less than you make’ leads to millions of follow-ups like:
Should I buy a home or rent?
Should I get a new car or drive an old one?
Should I FIRE? (or FAT FIRE or LEAN FIRE or BARISTA FIRE or CHARCOAL FIRE or CRUISE FIRE or whatever other flavor there is out there)
Can I have kids or should I wait?
Do I pay debt or invest or save or if I invest, where?
Well, I compiled a list of 10 of the more controversial personal finance topics and put together the information you need to make smart decisions on the topic. And after making the list, it is pretty clear what the controversy is for. Too many people make finance ‘rules’ instead of finance ‘frameworks’.
Rules are strict. Rules are unbending. If you adhere to a rule, you slam it into every situation. And if anyone says different, you defend the rule as it the basis for your decision making.
Whereas frameworks recognize different situations have different optimal solutions. They set a process for working through and finding what works best.
This post will cover cars, homes, kids, insurance, debt, investing, and retirement. It should clarify what is important around these issues because in the end, personal finance is personal. You can personally prefer 1 option over another, but you should know what the trade-offs of your choice are and the pros vs cons.