10 Reasons Most Money Advice Quietly Fails in Real Life

There is no end to the money advice you can find online— and most of it is pretty similar. Stick to a budget, live within your means, invest your income, etc. So why, I ask myself, do so many people struggle with money?

While it’s true that some financial tips are better than others, I think what we have here is a failure to deliver the advice in a way that is actually helpful to the reader.

It turns out that the limiting factor in financial success isn’t a lack of knowledge, but rather a failure to consistently act on that knowledge. Most people can’t sustain those efforts across the long arc of their lives. The reasons for this are varied and numerous, and have more to do with the intricacies and complexities of human nature than anything purely financial.

It’s that gap that I want to explore in this article. Why most money advice fails to deliver what it promises.

Not getting buy-in from your spouse

If you’re married, the most important financial relationship in your life is with your spouse, not some online blogger or even your financial advisor. I’ve seen couples argue and build up resentment with each other due to not being on the same page financially. Even if one of them had a really good plan, it doesn’t matter if the other person isn’t on board. In my own marriage, my wife and I have had some of our best conversations while trying to figure out our financial plans for the future. I couldn’t imagine trying to do it alone.

The advice focuses on the technical details more than emotional ones

Most money advice focuses on what to do with your money and while the problem is often how you feel about money. Do you feel guilty spending money on yourself? Do you feel shame about having debt? Does thinking about finances make you want to pull your hair out? In my experience, the emotions around money are a huge, but under-discussed, component of why people struggle.

The advice doesn’t take into account your starting point

I think it’s so common for people to throw up their hands when they see what they should be doing, and realize how far they are from that ideal. It’s easy to feel like it’s hopeless and they’ll never get back on track. Most money advice doesn’t consider this emotional gap— the difference between where you are, and where you’d like to be. There’s no way to get there but to start, but that can feel overwhelming.

Financial success can take decades

It’s not just the emotional struggles that make money advice hard to follow, it’s the fact that results come slowly. You don’t have a lighter wallet just because you decided to cut back on your spending. And you don’t have more money because the money you invested yesterday didn’t grow. The best health tips are ones that have some short-term rewards, like feeling more energetic or starting to look better. Unfortunately, money takes a while longer to change your life, and that can make it hard to stick with a plan.

Life has so many lovely distractions

One of the best tips I heard about money was to pay yourself first and save/invest money every month before anything else. That way you couldn’t spend it. This is great advice in theory, but the truth is that most people don’t like to think about money and would rather spend time doing something else. In the past, money advice has failed me or others because it required more discipline and focus than we could realistically muster in the long run. I think it’s best to automate as much as possible and not rely on motivation.

It doesn’t consider the element of luck

I’ve had a job where the company went bankrupt and I lost my job through no fault of my own. Luckily, I lived very frugally for a few months and was able to find other work without going into debt. But this event convinced me that luck does play a role. You can do a lot of things right financially and still experience some bad outcomes. Good money advice can’t ignore these realities, but should prepare people for them.

The comparison trap

The foundational piece of money advice is to live within your means, but this is a lot trickier than it sounds. Many people don’t spend money because they’re greedy for more, but because they want to fit in socially with their peers. They have forgotten to prioritize their own needs and values over those of their social circles. I’ve found the best thing you can do is find a few like-minded friends who share similar attitudes towards spending.

Life is boring without any risks

One of the most common pieces of money advice I hear is to avoid debt altogether. I get it, debt is a huge problem and should be avoided, if necessary. But the truth is, there are times when taking out a loan is the right move, even if it’s a bit risky. I’ve known many people who used debt to buy a home, pay for unexpected medical expenses, or even start a business. The point being that risk itself shouldn’t be scary, but only if you don’t understand what you’re doing.

It requires you to keep track of a lot of things

Some money advice isn’t bad per se, but it’s unsustainable for people who don’t think about money all the time. For example, I’ve heard tips about complex budgeting systems and ways to save pennies by doing hours of work. These systems are more likely to be a burden than a help to those trying to get their finances in order. The best piece of money advice I ever received was the KISS principle: keep it simple, stupid.

Doesn’t help people see why change is needed

If money advice is going to be useful, it’s going to need to persuade people to change, and not just give them something to think about. Too many people already know what to do, but aren’t convinced that change is necessary. As a child, my parents impressed upon me the importance of saving money. But you better believe that I didn’t follow their advice until I realized for myself the value of spending less than I earned.

I haven’t fully realized my potential as a financial advisor, but I do know a thing or two about people. For better or worse, people are never going to change certain aspects of who they are. The best way forward, in my view, is to start with people as they are— to meet them where they are at— and help them navigate the complexities of life with some common sense principles. Simple ideas that make sense and can be applied to a wide range of situations… now that kind of advice is timeless.