Suze Orman, Dave Ramsay, Robert Kiyosaki, and Ramit Sethi are just a few of the personal finance gurus. They have sold hundreds of thousands of books and influenced public perceptions of what it means to be financially responsible. They’re pretty successful, but are they always correct? According to Yale economics professor James Choi, not always.

Choi did every sensible entrepreneur a favor and read his recent NBER paper’s top fifty personal finance books on Goodreads. He compared their advice to academic economists’ consensus views and discovered some differences. Here are three personal finance myths that Choi debunked.

You Should Have an Emergency Fund Equaling 3-6 Months of Expenses Saved Up

The myth: Orman writes that you should have an emergency fund that equals 3-6 months of your living expenses in case you lose your job or encounter unexpected medical bills. This is a widely accepted piece of advice.

The reality: Choi found that only 57% of economists agree with this statement. Many senior economists believe this recommended amount is too high and unnecessary. They cited two main reasons for this belief. First, many Americans already have access to unemployment insurance, and second, many people have credit cards as a safety net in financial emergencies. Credit cards can act as a form of short-term borrowing which can help tide people over during tough times financially.

You Should Invest in a Diversified Portfolio

The myth: Kiyosaki says you should diversify your portfolio across multiple asset classes, including stocks, bonds, real estate, and collectibles like art and coins.

The reality: 100% of surveyed economists agreed with this statement. So Kiyosaki is right on the money (no pun intended) with this one! Diversifying your portfolio is essential because it helps mitigate risk; if one asset class takes a hit, hopefully, another will be doing well to balance things out.

You Should Pay Off Your High-Interest Debt First

The myth: Ramsey believes that you should pay off your high-interest debt first before investing or saving because otherwise, the debt will compound and grow exponentially larger.

The reality: Only 26% of economists agreed with Ramsey on this one—the vast majority disagree! The reason for this disagreement is that while Ramsey’s advice makes sense mathematically, there are other factors to consider—like opportunity costs in the real world. For example, let’s say you have $5,000 in high-interest credit card debt and $5,000 in savings. Ramsey would advise you to put all $5,000 towards paying off the debt first before doing anything else with the money. Still, Choi and other economists would advise you to invest the $5,000 in savings because it has the potential to grow exponentially larger than $5,000 through compounding interest (assuming you don’t touch it!).

Take personal finance advice with a grain of salt—even if it’s coming from someone who seems to know what they’re talking about. While some standard personal finance advice is supported by academic research, others are not. Do your research and consult with professionals before making any significant financial decisions.

Source: Popular Personal Financial Advice versus the Professors | NBER