Are you your only advisor?
The success of having multiple advisors is no secret. Even the Holy Bible talks about it in Proverbs 15:22:
22 Plans fail for lack of counsel,
but with many advisers they succeed.
A lot of people, especially now, are having huge financial difficulties and instead of seeking help they continue doing what they’ve always done, and consequently, that is what got them in trouble! For things to work differently you must make changes. It was Albert Einstein who said:
Insanity is doing the same thing over and over again and expecting different results.
Are you insane? We didn’t think so! You need advisors. Do you need big fancy advisors? Unless you’re trying to pick stocks, invest for retirement, or plan you estate, then the answer is probably no. If you can afford a few financial advisors, then great, but all you really need are a few people’s opinions.
What Do They Know?
The funny thing about finances is that many people generally know what should be done but they only know it about another person’s finances. Many people have trouble applying it to their own. For example: Let’s say you are trying to rationalize a vacation. If you seek a wise friends opinion about it, being honest about your financial disposition, then you should receive wise advice about what you should do.
Ask them to be completely honest with you. It doesn’t hurt to get multiple opinions, in fact, it is encouraged. You may have a friend that uses this rationale: “Oh, you have been so stressed out you need a vacation! You deserve a vacation! Don’t even worry about it!”
Depending on your financial situation that could be wise or foolish advice. This is why it is important to get multiple opinions. The hard part is to discern which advice is the right advice. Don’t let the side of you that wants the vacation to ignore the 3 people who said don’t do it and listen to the single person who said go for it. Here are some important tips when employing this advisory method:
- Your best friend makes everything feel better, but if they aren’t financially wise, then they’ll have to sit this out.
- Don’t ask people to advise you that are in similar or worse financial situations. Although they may give correct advice, they are more apt to tell you to do what you want.
- Ask parents, and other family members because they are more likely to give you an honest and loving response, even if you don’t want to hear it.
- You must be a financial pillar of strength and cast your wants aside to determine what the proper decision is based on the advice you’ve received.
- If you can consult with a financial advisor then do it! Why waste a good resource whose job is to tell you if something is a good idea or not.
Just This Once!
You’re being weak! What if you get laid off after your “just this once?” Wouldn’t it have been nice to have that cash, or if you live the credit card culture and didn’t pay with cash: wouldn’t it be nice to not have that extra credit card debt? Is the vacation, the new car, the bigger house, the skinnier TV, or the “pool you’ve always wanted” really worth the sacrifice of your family’s financial stability? Put your financial stability first, then get some fun stuff. What is financial stability? Here are some of the pieces to that puzzle:
- Get off the emergency credit card by making an emergency savings!
- Begin Budgeting
- Quit using Payday Loans
- Eliminate your debts (car payments, and to be really safe, the mortgage!)
- Get a retirement plan under way
- Get college funds started
That seems like a lot of work because it is, but it is your responsibility. Get those things out of the way and you’ve fulfilled one of the biggest parts of your job, you have provided financial stability. After that, enjoy doing the fun things knowing that you probably won’t go bankrupt in the coming week because of a lay off or medical bill.