Millions of people turn to Reddit to talk about personal finance topics. But how can you join the discussions and get quality answers?
Much of the conversations happen in finance-related subreddits. Financial experts, however, warn that you should proceed with caution.
Here’s a closer look at Reddit, some of the most popular personal finance subreddits and tips on getting financial advice from the platform.
A Reddit Overview
You may have heard the buzz about Reddit and perused a thread or two but wondered how it all works.
Reddit is an American social news aggregation site and forum social network that allows users to rate content. The platform is full of communities known as subreddits, which each have a particular focus, community rules and a unique culture.
[READ: Best Books on Financial Literacy for Women]
As a user, you can create posts in communities and on your own profile, reply to topics and upvote or downvote content.
How To Find the Best Personal Finance Advice on Reddit
If you want to find personal finance advice on Reddit, a good way to start is joining popular subreddits that focus on those topics. Here are a few examples:
— r/personalfinance has 19 million members and focuses on budgeting, saving, credit, investing, getting out of debt and retirement planning.
— r/financialindependence has 2.2 million members and focuses on becoming financially independent and retiring early.
— r/povertyfinance has 2.1 million members and focuses on personal finance advice for people struggling financially.
— r/beermoney has 1.3 million members and is a place to discuss online money-making opportunities.
— r/FinancialPlanning has 862,000 members and focuses on personal finances, budgeting, income, retirement plans, insurance, investing and frugality.
— r/Fire has 508,000 members and focuses on the FI/RE (Financial Independence / Retire Early) money strategy.
These communities are full of finance-related posts you can browse and discussions you can join.
If you’re looking for a post about a specific topic, you can “filter by flair” or type the topic into the search bar. Additionally, you can add a post of your own to one of these groups and it will become visible to an engaged community.
“Reddit can be great for general information and searching, and especially for finding what works for people in particular situations. For example, you might find someone with your job and a similar family — now you can talk about what works for you,” Greg Maxwell, an attorney and certified financial planner at Amicus Settlement Planners, said in an email.
Michael Collins, a chartered financial analyst and the founder and CEO of WinCap Financial, also said Reddit can be a helpful resource for finding personal finance advice.
“There are many knowledgeable users on the platform who are willing to share their experiences and advice on various financial topics,” he said in an email.
“For example, one topic that Reddit users might give helpful advice on would be how to set up a budget,” Collins added.
He also warned that when it comes to big decisions like buying a house or what stocks to purchase in a retirement account, you shouldn’t believe everything you see on Reddit. “A small percentage of users are qualified to give advice on such topics,” he said.
[READ: 7 High-Return, Low-Risk Investments for Retirees]
The Risks of Seeking Personal Finance Advice on Reddit
Although you can find helpful personal finance advice on Reddit, looking for answers on an open platform comes with risks.
Anyone can join Reddit and post, so you risk getting advice that could be harmful to your situation. The content ratings can help to vet advice but there are no guarantees that the majority of voters are correct, since they aren’t aware of your full financial picture
“Financial advice on Reddit is as helpful as the person giving it. Often, it’s people without knowledge getting advice from others without knowledge. In that way, it can be pretty dangerous. But, there’s also plenty of good financial advisors and other experts who weigh in from time to time,” Maxwell said.
Collins said that Reddit can be a good place to find initial guidance on general finance topics like budgeting, but recommends seeking professional help from a certified financial planner when dealing with more complex financial matters like tax strategies, retirement planning or estate planning.
[Read: Estate Planning Tips to Keep Your Money in the Family.]
“Also, make sure not to share too much personal information that could potentially compromise your financial security or give out personal information or login details to anyone claiming they can help improve your finances,” Collins said.
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How to Find the Best Personal Finance Advice on Reddit originally appeared on usnews.com
Update 07/26/24: This story was published at an earlier date and has been updated with new information.
