Good vs. bad financial advice: how to tell the difference

Photo above by Artem Podrez

Balancing the present with the future isn’t easy. When it comes to spending money, the pull of “now” often beats the distant voice of “later.” And that’s perfectly human. Everywhere you look online, there’s advice telling you how to train your brain to save more, spend less, and change your money habits. Most of it leans heavily into psychology—cut your morning coffee, automate savings, visualize your future self living in a paid-off condo on a beach. There’s nothing wrong with that kind of advice. But here’s my take: it’s incomplete.

Financial planning isn’t just about behaviour. It’s about context. It’s personal. It’s about where you are today—your job, your family, your goals, your tax situation—and where you want to be in 10, 20, 30 years. Your future self is relying entirely on the decisions you make right now. Whether you’re saving 5% or 20%, investing wisely or not at all, protecting your income or hoping nothing bad happens—it all adds up.

So let’s break down the kinds of advice out there:

Bad advice

This is the flashy stuff. It tells you to go all-in on one thing, often without any nuance:

• “Put everything in crypto.”

• “You’ll regret not owning real estate in GTA.”

• “Gold will never lose value.”

It’s hype over substance. It ignores risk, taxes, timing, and your actual goals. In short: it’s not advice—it’s marketing.

Not bad advice

This is the kind that feels responsible, but doesn’t go far enough:

• “Start saving early.”

• “Cut expenses and live below your means.”

• “Stay invested and don’t panic.”

All good messages. But you’re only solving half the puzzle without the full picture — your tax bracket, the right account types, your family needs, your risk appetite. You might be saving diligently, but still missing out on tax-efficient growth or not protecting yourself properly.

Good advice

Good advice starts by looking at your whole financial life, not just your spending habits. It helps you:

• Protect your current lifestyle (with insurance, emergency funds, etc.)

• Align your investments with your goals and comfort with risk

• Use tax rules to your advantage, not your disadvantage

• Stick to the plan — even when markets are volatile

• Prepare not just for retirement, but also how you’ll draw down those assets in retirement

• Leave something behind, if that’s important to you

It’s not just about telling you what to do—it’s about helping you understand why you’re doing it, and staying with you along the way.

A quick example

Let’s say you’re saving 20% of your income. Great. But where are you putting it? RRSP? TFSA? Non-registered? Are you invested in a way that matches your time horizon and goals? Do you know what happens if you stop contributing for a year? All of that matters. It’s the difference between being on track for your goals or just guessing and hoping.

And yes, about that 1% fee…

It’s tempting to skip working with a Certified Financial Planner to save that 1% fee. I get it. But here’s the thing: a good advisor who understands not just markets but your entire financial picture can save you far more than 1 per cent in the long run, especially when markets get rough, tax laws change, or life throws you a curveball. Sometimes, paying for good advice saves you from expensive mistakes— the kind you only realize 10 years later. There’s a lot of advice out there. Some of it’s bad. Some of it’s not bad.

But the best advice? It’s the kind that meets you where you are, considers your full financial life, and helps you move forward with clarity.

By Shivinder Aujla, CFP®