Why “Good” Finance Advice Doesn’t Work for Everyone

Today’s column comes to us from Nashville’s Lauren Reed, co-founder of Wealth of a Woman and a founding partner at REED Public Relations.

**********

It doesn’t take long to come across financial advice these days.

Open social media, listen to a podcast, or catch up with a friend over coffee, and you’ll hear plenty of opinions about what you should be doing with your money. Buy a house. Invest in the market. Diversify your portfolio. Save a certain percentage for retirement.

Some of that advice is helpful. Some of it isn’t. More often than not, it conflicts with the previous thing you read. And almost all of it is missing one important detail: the reality of your own life.

To help demystify all the mixed messages, I sat down with Teresa J.W. Bailey, my Wealth of a Woman cofounder. As a personal financial chief of staff to high-net-worth individuals, Teresa works with entrepreneurs, executives, and families to coordinate every aspect of their financial lives. She has a way of cutting through common financial myths and reminding us that the best financial decisions are rarely one-size-fits-all.

When Popular Advice Misses the Mark

Lauren: We hear financial advice everywhere these days, from social media to podcasts to friends. What’s one piece of advice you hear all the time that you think needs more context?

Teresa: One of the biggest misconceptions is the idea that everyone should own the same investment. Whether it’s real estate, stocks, digital currencies, private investments, or even cash, there’s no single asset that’s right for everyone.

Take buying a home, for example. We’ve all heard that renting is “throwing money away,” but that’s not always true. Homeownership comes with unpredictable expenses that people don’t always factor in, like replacing a roof, a heating and cooling system, or making unexpected repairs. There are seasons of life when the predictability of renting may actually support your financial goals better than owning.

The same is true with cash. Many people are told they should always keep more cash on hand, but if you’re carrying high-interest credit card debt, paying that down may provide a much greater financial benefit.

Your balance sheet should be built around your life, not someone else’s. Looking at how other people invest can be a great way to learn, but it shouldn’t become your instruction manual.

Pin

Diversification Looks Different Than You Think

Lauren: Another phrase we hear often is, “Just invest a little bit in everything and you’ll be diversified.” Is diversification really that simple?

Teresa: Not exactly. I like to say diversification should look like a professionally organized closet, not a junk drawer.

Every investment you own should have a purpose and work together with the rest of your portfolio. True diversification isn’t about collecting random investments. It’s about creating a balance that helps protect you when markets shift, interest rates change, or unexpected events happen.

That kind of coordination takes intention, and it’s one of the reasons working with a financial advisor can be so valuable. They can help you understand how each piece fits into the bigger picture.

The same principle applies to the professionals you work with. People sometimes assume that having multiple advisors means they’re getting more perspectives, but it often creates fragmentation, duplicated efforts, and higher fees. Just like your investments, your financial team should be coordinated.

Rethinking the Rules of Retirement

Lauren: One often-repeated rule of thumb is that you’ll only need about 80% of your current income once you retire. Do you agree with that?

Teresa: I really don’t.

In fact, I like to say, “I spend more money on Saturdays than I do during the workweek, and retirement becomes six Saturdays every week.”

Many of today’s retirees want to travel more, invest in their health and longevity, spend meaningful time with family, or even help children and grandchildren financially while they’re still here to enjoy it. Some people want to renovate their homes to age in place or move closer to family. Those goals don’t necessarily cost less than working life, especially when you factor in inflation.

I also think we’re seeing an important shift as more women take an active role in financial planning conversations. They’re bringing different priorities and asking different questions as they define what they want retirement to look like.

Rather than relying on a percentage, I encourage people to start with the life they want to live. Imagine your ideal retirement first. Then calculate what that lifestyle will actually cost. That’s a much more meaningful way to plan.

Pin

The Best Financial Advice is Personal

Lauren: If people take away one thing from this conversation, what do you hope it is?

Teresa: I’d want people to remember that personal finance is personal.

Rules of thumb can be helpful starting points, but they aren’t universal truths. Every financial decision should be made in the context of your goals, responsibilities, values, and the season of life you’re in.

The best financial plan isn’t the one that looks like everyone else’s. It’s the one that’s intentionally designed to support the life you want to live.

The Bottom Line

One of my favorite things about conversations like this is that they remind me there isn’t a single “right” way to build a financial life.

Money is deeply personal, and our goals, responsibilities, and priorities evolve over time. The advice that makes sense for one person may not make sense for another, and that’s okay.

If this conversation encourages you to pause before following the latest financial trend or rule of thumb, I’d call that a win. Ask questions. Stay curious. Find trusted people who can help you think through your own situation.

After all, the best financial plan isn’t the one that works for everyone. It’s the one that works for you.

Ready to keep the conversation going?

Meet Lauren and Teresa in person on Thursday, August 20, at Louisville’s Speed Art Museum for a morning of honest conversations about women and money. Tickets are $25. Find out more and reserve your spot HERE!

Pin

**********

For more great tips on health, organization, financial planning, and beyond, subscribe to StyleBlueprint!