It’s Your Money: Owning Your Personal Finance
It seems like there a lot of people out there who are pretty happy to tell you what to do with your money. Invest, save, pay off debt. There are a million different options and the whole shebang can get a little intense. So what are the best ways to navigate the minefield of your finances?
Know What You Want
There is absolutely no point in having a high-risk shares portfolio if all you want is some security for your house. If you’re perfectly happy paying down your mortgage and have no interest in risking your hard-earned cash, then go for it. So it may mean your money isn’t working quite as hard as it could be. So maybe you won’t earn a huge bonanza. So what? If you can sleep at night, survey says you’re onto a winner. Know your own money personality, your goals and your risk tolerance.
Ask Questions
You’re not a money expert, so you go to one to help you out with personal finance. They’re advisors, they’re meant to advise. That doesn’t mean you take everything they say as if it were direct correspondence from heaven. Like any profession, there are good personal finance advisors and there are bad ones. There are some who are perfectly good at their job, but just don’t understand where you are coming from. Get over your ignorance, and ask questions. If you’re uncomfortable with the scenario, don’t go ahead with it. They might be the professional but, at the end of the day, it’s your money and no one can tell you what to do with it. Excepting the tax office of course, who are backed by serious legislation and very intimidating letterheads.
Stick To Your Guns
If, in your heart of hearts, you know what financial set up is right for you, don’t get talked out of it. If everyone around you is investing, and you just want to save, then by all means, do it. There’s no harm in seeking professional advice and asking around about some good options, but the decision rests with you. Similarly, you have a right to change it whenever you feel like it. If your situation changes and you feel like investing in some more exposed ventures, or you want to solidify your position and reduce your risk, then you are perfectly able to do so. A good advisor will continually update and inform you about the best options for your money.
Get Informed
They say a little bit of knowledge can be a dangerous thing. That definitely can be true. Just because I read the other day that a company is on it’s way up doesn’t mean I should put everything I own into it. It doesn’t mean you have to spend hours studying the stock exchange- just that when having discussions about your money, you can express what you want to to achieve and what you want to avoid. If consulting an expert. they should always explain the risks, benefits and consequences of any particular money approach. If they don’t explain that fully, I’d think about parking somewhere else. Somedays, the mattress trick does have its appeals, but if you ask questions, stay informed about your money and settle with an option (or, better, diversified options) that suits your current lifestyle and your hopes for a future lifestyle, you should be onto a winner.
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