4 Key Signs You’re Getting Money Advice From the Wrong People
Written by
Cindy Lamothe
Edited by
Rebekah Evans
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Money talk is everywhere. From group chats to TikTok to family dinners — everyone seems to have a hot take on what you should be doing with your finances. But just because someone is loud (or confident) doesn’t mean they’re right.
“We work with clients across all income levels and one of the first things we help them unlearn is the financial noise they’ve absorbed from friends, social media or unqualified voices,” said Chris Heerlein, CEO of Reap Financial.
In fact, The New York Times reported that financial advice on social media is growing and it’s also risky. Bad advice doesn’t always sound wrong, but it often comes from the wrong person.
Before you take that next big money move based on someone else’s two cents, here are a few red flags that you might be listening to the wrong people.
If Someone Gives Advice Without Understanding Your Goals, Don’t Take It
Good money advice isn’t one-size-fits-all. Real guidance takes your personal goals, values and situation into account — not just a flashy rule or the latest “hot tip.” Be especially cautious with anyone who’s quick to offer urgent advice, promises guaranteed returns or glosses over risk. That’s not financial wisdom — it’s a sales pitch in disguise.
“We’ve helped clients undo damage from decisions they made because someone recommended a hot tip without considering the full picture,” Heerlein said. “Context matters. What works for one person can be totally wrong for someone else.”
Anyone Who Downplays Time and Discipline in Favor of Shortcuts Is Giving Bad Advice
If the focus is on quick wins or timing the market, you’re likely getting entertainment, not real strategy. One client of Heerlein’s followed a friend into crypto who had no background in finance, just a lucky streak. “That loss hurt not just financially, but also their confidence in investing going forward,” Heerlein said.
Andrew Lokenauth, money expert and owner of BeFluentInFinance similarly agreed on this point. “The biggest warning sign I see is when someone pushes get-rich-quick schemes,” he added.
Last October, he said a client came to him after losing $50,000 on some “revolutionary” crypto project that promised 10 times returns in 30 days. The person who sold them on it had zero financial background — just a flashy Instagram presence and expensive cars (probably rented).
According to Lokenauth, good financial advice should be boring, methodical and focused on your specific situation. If someone’s promising fast riches or pushing fancy-sounding investments you don’t understand, he said to run the other way.
“Trust me on this — I’ve spent way too much time helping people recover from following bad advice,” he added.
A Clear Red Flag Is Someone Pushing a One-Size-Fits-All Approach
One of the biggest red flags? When someone insists there’s only one right way to manage money. That kind of thinking drives financial experts like Lokenauth up the wall. “I had this client who got advice to put 100% of their money in tech stocks because ‘that’s where all the growth is,'” he recalled. “But they were 60 years old and planning to retire soon.”
In other words, they didn’t need a high-risk, high-reward strategy — they needed a plan that prioritized stability and income. Blanket advice like that not only ignores a person’s age and timeline, but it can also jeopardize their financial security.
Just because something worked for your friend’s younger brother or some guy on YouTube doesn’t mean it’s right for you. Financial advice should adjust to your goals — not force you to fit someone else’s mold.
Beware of Advisors Who Pressure You To Act Immediately
“Don’t even get me started on advisors who pressure you to act immediately,” Lokenauth said. “I’ve seen way too many people make rushed decisions because someone told them ‘this opportunity won’t last.'”
He said that’s a classic sales tactic, not legitimate financial guidance. Whereas, good investing takes time and careful planning. Lokenauth emphasized that social media has made this problem so much worse.
“These self-proclaimed ‘finance gurus’ with zero credentials are everywhere, showing off fancy lifestyles and promising to teach their ‘secrets’ for $997,” he said.
But when you dig deeper, he said you’ll find they make money from selling courses — not from actually investing.
Bonus: Trust Advice That Comes With Credentials, Planning and a Fiduciary Mindset
Not all financial advice is created equal — and neither are the people giving it. “Ask if the person is a CFP (certified financial planner), if they work under a fiduciary standard and how they make money,” Heerlein said. “You have a right to know whether their recommendations are in your best interest or theirs.”
A qualified advisor takes the time to understand your full financial picture before offering guidance. They build a strategy tailored to your goals, not someone else’s idea of success. And if someone is pressuring you to act fast or making it sound like a “limited time offer,” Heerlein is clear: that’s not advice — that’s a sales pitch.
Lokenauth echoed this. “For what it’s worth, the best financial advisors I know spend more time listening than talking,” he said. “They ask about your goals, your timeline, your risk tolerance — they actually care about what you want.”
The best advisors aren’t just knowledgeable — they’re honest. They’ll tell you when something doesn’t make sense for you, even if it means they walk away without a commission.
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