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Published: Sep 02, 2022 6 min read

Good news, spendy young people. You can probably ignore the popular personal finance advice that says you must always save a certain portion of your income.

A new working paper by James Choi, a professor of finance at the Yale School of Management, explores how popular personal finance advice — like the directive to save early and consistently — compares to academic research by economists.

Choi read through nearly 50 of the most popular personal finance books from the last decade or so, including Robert Kiyosaki’s Rich Dad Poor Dad, Ramit Sethi’s I Will Teach You to Be Rich and three titles from each from finance celebrities Dave Ramsey and Suze Orman.

Choi found that for the most part, the strategies that economists say are optimal differ from the advice in popular personal finance books.