How to Find the Best Personal Finance Advice on Reddit

How to Find the Best Personal Finance Advice on Reddit

Personal finance advice is all over the Internet – and it has become especially prevalent on the social media site Reddit.

Reddit allows "Redditors" to share images and posts on forums, grouped into smaller forums called subreddits.

While some of the personal finance advice on the site is relatively harmless, some of it isn't.

Should You Take Personal Finance Advice From Reddit?

Turning to Reddit for specific personal finance advice probably isn't the best idea.

"Generally speaking, I would not recommend Reddit for quality personal finance advice," says Kevin L. Matthews II, former financial advisor and owner of BuildingBread, a website aimed at helping millennials achieve their financial goals.

Using Reddit for personal finance advice is problematic because the website doesn't have a verification system.

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"What makes me slightly more pessimistic about Reddit versus Twitter or LinkedIn, for example, is that it can be much harder to verify someone's expertise," Matthews says.

Additionally, personal finance advice is, well, personal.

"There is certainly good and bad advice that can be found in these places," Rakhim Sabree, author, columnist and financial coach, says. "The context of each individual's experience can skew the effectiveness of such advice, which makes the practice risky."

There is some advice from Redditors, however, that's not so involved. Here are some popular subreddits that might come up in your search for personal finance topics:

• r/personalfinance
• r/frugal
• r/financialindependence
• r/investing
• r/Bogleheads

• Look For Inspiration Instead of Advice

  Reddit is best known for its tips, tricks and hacks, which might be helpful if you use them for inspiration instead of advice.

  The forums generally share a lot of information on topics such as coupon hacks, meal prep ideas and expensive product dupes.

  If you see a more sophisticated tip you want to try, talk to a financial advisor first to see if it's a good fit for your financial situation.

• Avoid Getting Involved in Forums That Involve Complicated Topics

  You should probably look elsewhere for advice on topics such as investments, taxes and insurance. Instead, talk to an expert about these subjects to get the best advice for your individual situation.

  When someone doesn't have a grasp on your full financial picture, it could end up costing you, Matthews says. "For example, if you take someone's advice to sell a stock for a gain without knowing what account that stock is held in, it could result in a tax bill," he says.