Let met first state no offense to other personal finance bloggers out there, but there are only so many ways to talk about debt. Unlike most Americans, I admire you’ve taken action and decided to document the process to get out of debt. However, you can only talk about Dave Ramsey’s “debt snowball” in so many ways, or how to cut corners with your budget.
Ironically, most personal finance blogs mimic what we see in society: lots of debt and very little investing.
The “getting out of debt” personal finance blogophere is a crowded niche. There are many blogs that discuss this topic, and typically the demographic who also reads the articles has no money. It’s like trying to draw blood from a stone. So while I believe it’s important topic to discuss, don’t expect business income miracles if you target this niche.
I also prefer to discuss more positive topics, and investing is one of them. To me, consumer debt is a very negative topic and emotion. Incurred debt is because of something you did in the past. I would rather discuss my future and my children’s future, which investing is all about. Investing is about growing and assumes the future is better than the present; that you’ll have more money in the future than now. The universe is ever expanding, and so should your finances!
A few personal finance bloggers state if you focus on writing great articles, your blog will become successful. Nothing can be further from the truth! If that were the case my friend from college, who wanted to be the next Steven King, would have been wealthy years ago. He’s a great writer, but lacks business skills. Writing is just one aspect of a successful blog.
Are You A Business, or Hobby?
If you want your online venture to be a serious business, you must treat it as such. Otherwise your blog is a hobby. There is nothing wrong with a hobby. Just understand it isn’t a business, and you won’t generate much income from it. So while you still need to write compelling articles, it’s much more than just that. This is no different than a business that just focuses on the technical aspects, without the sales, marketing and customer service. The business will fail miserably, and the same applies to a blog.
My point in writing this post isn’t to boast how great my blog is, or why others fail miserably. My point is if you want to get where you want to go to, you must focus on it, massively. Know the true purpose of your business, and make sure you are climbing the right ladder.
What Is Your Purpose?
For example, this blog isn’t about me. It’s about educating others about various business and investment topics. While I may get something from writing and researching articles, it’s not the primary purpose. The primary purpose is to empower others to make better investment decisions.
In addition, just focusing on debt reduction will reduce the debt. There is no question about it. Which is fine up to a point, but it will not make you financially independent. I assume this is the real outcome everyone wants to achieve, but in reality people rarely achieve it. The sad fact in our society, many consider the lottery as a form of “investing”.
Statistics show most people by 65 years old are either dead broke or dead! Most will run out of money before they run out of life, which is a very scary thought.
I suspect many who write these personal finance blogs are in the 20′s and 30′s. It’s best now to start focusing on saving and investing, even if you still are in debt. Learn as much as you can now, even if you have little or no money to invest. Because if you really want to achieve your goal, you’ll need to understand investing.
If you are a personal finance blogger, step up and know your true purpose. Be more than just a writer.
Congrats for standing out and speaking up, I couldn’t agree more! My favorite part was ‘A few personal finance bloggers state if you focus on writing great articles, your blog will become successful. Nothing can be further from the truth!’ Running a blog is a business, and very few people can avoid the eventual need to monetize it in some way, they just don’t like admitting that they do. What I find the most disingenuous are those bloggers who claim that they are completely against debt and above commercialism; however, they have ads linked to credit cards and payday loans, so be honest, don’t be a hypocrite. Really enjoyed this post!
Hi Monica,
I’m all for capitalism and fully exploit it on my site. I won’t hide this fact, nor a hypocrite.
That’s what I love about your blog! I hope you know that I wasn’t talking about you
I’m sure I will offend some people with my comment, which wasn’t my intention, just an observation about a few bloggers I’ve had contact with.
No offense taken.
You’re right in that there is an abundance of blogs that write almost exclusively about debt. I do think debt-related posts can be useful but I agree that they get tiresome after awhile. There are many topics to cover under the personal finance umbrella, so I try to touch lots of different subjects.
Exactly! I would love to have some of your articles submitted to the Self Directed Investing For Retirement Carnvial on the AAAMP Blog!
OK, I’m going to turn 65 soon & I write my blog to help others find ways to live well on less money. I’ve learned quite a few tricks over the years, raising 4 kids who are now college-educated adults supporting themselves and their families. I don’t know it all, but I know a lot! My blog has no ads right now because it’s mainly a hobby. I might have to monetize eventually, but for now I’m ok with no income.
My motto is “Save Money, Cook Great, Have Fun!” Stop by & check out easy yummy recipes that don’t cost an arm & a leg. I have plenty of posts on getting the most for your money and organizing your finances. I’m not an expert in everything, but I know about having fun on limited income! I don’t talk a lot about debt since so many people have that covered.
I hope I’m not included in your suck category! In Wisconsin we attempted to start a young investor group. When we had our first meetup 90% of the people that showed up considered getting out of debt “investing”. I think Monica’s point is admirable, but most of the time it’s Adsense that is picking the ads. Unless they go out of their way to integrate credcard.com’s API, then I agree.
My blog is all about debt. I don’t encourage it, but I must admit I prefer to be on the lending side. I say spend, I will always be there on the lending side to help you out!
@Michael: Monica is more referring to sites that downplay consumerism and commercialization, yet have ad banners. If you dislike capitalism, you shouldn’t have ad banners on your site. I can think of a few sites that do this.
No your site isn’t included in my category.
While I can agree that a lot that is out there doesn’t interest me whatsoever, but I think you should remember that most people start their PF Blog to capture their journey. Besides who wants to listen to anyone tell them about investing and growing one’s net worth if they are 300K in the hole with consumer debt?
Hey Evan,
) Sort of an open diary. To each their own.
I’m not knocking others who want to document their journey that’s perfectly acceptable (ahem “My Journey To Millions” guy
Though it comes back to my original statement it’s more of a hobby, and not a business. As you stated it’s creating a blog for THEIR purpose, and therein lies the problem.
A business is much more selflessness by giving to others. In this case educating others on finance. A business in the long run can only make money if it adds more value than what you get in return.
Though with your example, of someone in debt, yes they must take care of the debt first. No doubt. They need to figure out how they got there in the first place, and how to get out of it. Though it can be assumed they will eventually meet their goal and get out of debt.. then what?
Most don’t have a freakin clue what to do next. The time to learn something and become an expert is BEFORE you have the resources, in this case money, not after. To anticipate the next events, instead of reacting to them. You are absolutely correct, most will never do this, but also many will never be financially independent either. Hence the whole purpose of this post.
To go back to your web site: The posts I enjoy on your web site is stuff where I (or others) can gain insight in areas they don’t have experience with.
This is why I am no longer part of one unmentioned group. I gave value (by giving my expertise and suggestions), and didn’t get respected from my peers for my advice (someone who’s been in the industry for over 15 years). Also learned nothing about growing this type business from others, or learned anything financially from the peers in the group.
So for me, there was no incentive to stay within this peer group. Any relationship should be a win-win for both parties. If it’s clearly a one sided street, then the relationship does not flourish. The ones who stay in the group then are all about equal in finances and experience. It’s critical to find peers that are better than you, not equal or lesser. That is the only way you get better.
Agreed. That is why I like this blog and also Smart Passive Income. My blog is primarily to keep me focused on our finances and to actively participate in our investments. We have rental properties, stocks and own our own business – all good steps – but we still aren’t financially independent.
I starting thinking about these things about 10 years ago when I read Rich Dad, Poor Dad. Yes I have a good job that pays well with benefits, but that has a very limited future. Figuring out how to be money savvy means learning how to make your money work FOR you, not just spend less. Yes frugal living blogs are great and useful, but there is a real void in the other end of the spectrum – investing, building wealth, earning more.
Thanks for the compliment. +1 with Smart Passive Income.
Amen to this post Larry.
Debt and frugalism are two important aspects of personal finance, but they certainly aren’t the most important. In my opinion, if you aren’t saving and investing, you aren’t getting ahead. Even if you reduce your debt, you are still behind. If you pay off your debt, then you are even. Getting ahead means accumulating wealth.
My goal is to prosper. That’s why I save and invest and from each and every paycheck. I do it before I spend a dime or pay a single bill. It’s the single most important thing you can do for your future. I tell this to anyone who will listen. Most people won’t and it’s their life to do as they choose.
Stick around the PF sphere for a while, and you’re bound to notice debt blogs that start sputtering out, once the primary mission of paying off debt is over and done with.
Debt and investing; they are two sides of the same coin. Personal finance isn’t all that different than business finance. You must find ways to increase and make new revenue. But, cost cutting (debt reduction) can be just as powerful.
Hi Shaun,
I don’t ever suggest being foolish when spending money, if anything quite the opposite.
My argument is reducing debt is pretty straightforward. Topics on using newspaper instead of wrapping paper, or how to make your own toothpaste will not make you wealthy! Yes you will save a few dollars, but missing out on the big picture. Focusing on the pennies you miss finding the dollars.
After a year of blogging (for profit from day one) I’ve been surprised what a small percentage of my time is spent actually writing. It really isn’t about the writing, is it?
Site design
Advertising
Communicating directly with readers (email etc)
Marketing in forums and on other blogs (it helps if you see this as recreation, not work, but it does take time)
Researching for posts
I’m also glad I don’t need the income from the blog. I would have had to quit quite a while ago if I didn’t have another job to support my family.
Great article. I agree that focusing solely on debt is not only negative but it’s also against the concept of personal finance anyway. Personal finance is supposed to be about a variety of topics related to household finance…this could include saving money, investments, etc. as well as debt. I think anyone who just talks about debt is going to sound like a broken record sooner rather than later. To make matters worse, that person’s readership won’t benefit nearly as much as they would from a diverse list of topics.
A fair point about incurred debt. It is backward looking – and a reminder of your past as the debt may have been a painful mistake that you are still paying off and still have to live with!
At some point people have to decide to put a portion of their income to savings and a portion of their time to developing and executing a strategy to accumulate wealth instead of debt. As long as they are spending more than their income they are going backwards. Discipline is needed. Habits have to be formed. People do not need a huge amount of cash to start investing, they can do something as simple as scan pocket change for coins with silver and keep them. The start is what is difficult, the resistance to discipline is powerful.