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7 Famous Pieces of Financial Advice You Really Shouldn't Follow

It’s smarter to stick to financial advice that applies to your situation.

By Jenny Cohen

Edited by Eric McWhinnie

Updated Sept. 30, 2024

Everyone has opinions about money or economic issues, but how much can you really trust them?

It might be a good idea to take a step back from the finance gurus out there to assess if their advice is worth following. You may be surprised that, in some cases, it’s better to ignore them.

Here’s some advice from famous financial gurus that you might want to reconsider when trying to build wealth.

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1. Dave Ramsey: Don’t use credit cards

You may have heard Dave Ramsey’s advice on the radio or television about not using credit cards.

After all, they can be a major source of personal debt that can be burdened by high interest rates.

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Instead, it’s OK to use credit cards wisely

Indeed, credit cards can be a source of debt if you don’t use them properly, but feel free to use credit cards if you plan to pay them off every month so you avoid interest charges.

You also may want to use credit cards to earn rewards or help build credit so you get better deals on loans for a home or car.

2. Robert Kiyosaki: Avoid stocks since a major crash is coming

You might have Robert Kiyosaki's bestselling book "Rich Dad, Poor Dad" on your bookshelf and refer to it for advice on raising your kids to be fiscally responsible.

But one area where Kiyosaki repeatedly gets it wrong is the stock market, with his constant pessimistic message that the market is going to crash, only to be proven wrong time and time again.

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Instead, remember the stock market always changes

The stock market can crash, but it can also go up and help you make money over the long term. In fact, over many decades, the broad market (as measured by the S&P 500) has tended to raise an average of about 10% per year.

3. Grant Cardone: Don’t save your money

If you listen to finance guru Grant Cardone, you may decide to go completely against Robert Kiyosaki’s advice and dump all your money into the stock market.

Cardone argues that you can earn more money by investing your cash instead of leaving it in a bank to sit and not work.

Instead, include savings in your portfolio

Savings are an important piece of a complete financial portfolio, and they add stability to your financial future that you can’t get from investing all of them in stocks, real estate, or other financial options.

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4. Roaring Kitty: Certain meme stocks are undervalued

“Roaring Kitty” is the online name of trader Keith Gill, who has amassed a following of day traders investing in so-called meme stocks.

But Gill’s belief that some meme stocks like GameStop are undervalued and good investments can be financially dangerous for most investors. Gill is the exception rather than the rule when it comes to timing stocks and receiving a big payday.

Instead, avoid the hype

There’s always the fear of missing out, but it may be better to let it go in the case of meme stocks. These stocks have wild swings that are impossible to predict with certainty. You’re more likely to lose money than make money by trying to jump in and out of a stock constantly.

Stick to stocks with strong financial data behind them rather than chasing what’s popular for the “lols.”

5. Kevin O’Leary: Ignore everything for money

Most TV viewers know Kevin O’Leary as a member of Shark Tank, taking on entrepreneurs by investing in their companies.

O’Leary is also considered a finance expert because of his business success, but you should probably question some of his advice.

O’Leary once said that to be financially successful, you have to give up everything else in your life, like your family, dog, and parents, because none of that matters compared to cash.

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Instead, find a good balance

Plenty of ways exist to be financially and personally successful without having to give up one for the other.

It’s all about finding a good balance when it comes to the different aspects of your life. You can have a successful personal and professional life while being financially successful.

6. Jim Cramer: These are the stocks to pick

There’s plenty of advice out there about which stocks to pick from different finance gurus like Jim Cramer.

But should you listen? He gives exciting advice on stocks, but even he will admit to getting some calls wrong such as telling viewers to invest in Estee Lauder or discouraging investors from buying into Tesla’s IPO.

Instead, invest in the best stocks for you

Before you create a whole portfolio based on advice from a finance personality, you need to do your own research and see if that advice is right for you.

Each portfolio can be different depending on the goals of the investor, so make sure your plans are tailored to your goals.

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7. Suze Orman: Stop buying coffee

You’ve probably heard from plenty of finance gurus and regular people on the street that you’re struggling financially because you buy coffee or other little things regularly.

One of those people giving that advice is Suze Orman, who thinks foregoing these little expenses like a cup of coffee is exactly what you need to do to become financially successful.

Instead, you can buy that cup sometimes

If you’re struggling financially, it may be smart to cut back on the number of times you go to a coffee shop every week, as those costs can add up.

But don’t feel guilty about ordering a cup of coffee because you enjoy a latte on your way to work or you buy some candy in the vending machine at the office to give you an afternoon snack.

Bottom line

It’s wise to do your research if you’re looking for help with your finances and there are plenty of options out there. But you’ll also want to be mindful that even the most famous financial gurus can get it wrong.

Make sure you do your research and take advice on the best ways to boost your bank account knowing that not every piece of advice is right for you.

It’s also a good idea to find a financial advisor who can review your circumstances and help you decide on your best financial path forward.

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