Financial advice is good stuff, right? When someone tells you that you should do this or that or the other, you listen. Or you pretend to listen. Or you don’t listen at all and don’t make any excuses about the situation; whatever floats your boat, darlin’. But the truth of the matter is that some people believe that financial advice from anyone driving a more expensive car, working from home or living in a larger house is the bible of financial advice. Why? Because those people have things that they don’t have, so they must be experts, right? Well, no; that’s really wrong. Just because someone says do this or don’t do that does not make their advice correct or even relevant. Some financial advice is outdated and no longer relevant. Some is so new that people are just no certain it’s good advice. And some advice is so bad that it’s not even worth mentioning (don’t pay credit card bills in full when you can pay the minimum and save the cash…what is that?!). With that in mind, it seems almost as if you need to do some serious soul searching to be able to listen to financial advice so that you are not put in a situation that causes you to do something foolish with your funds.
We have a few strategies that might protect you when you are reading financial advice. This advice is going to help you keep your financial situation under control so that you can protect your investments and look for alternatives that will help you understand the advice that’s being given might not necessarily be the best advice for you.
Get a Second Opinion
You would not take to the internet for health advice related to your symptoms and then begin a chemotherapy treatment for cancer because you read that you have all the same symptoms of a particular form of cancer, right? You also wouldn’t begin a chemotherapy treatment without first getting a second opinion to help you understand the situation and how to better yourself as a whole. This is why you should not read financial advice and take it without getting a second opinion. This is the kind of information that will help you to determine whether or not it is financially secure to go ahead and make a decision that could impact your financial future in such a drastic manner.
Go Little or Go Home
Some financial decisions allow you to try them out before you commit. For example, why not try one or two items for a few dollars rather than remodel your entire house? You might choose to try out those very expensive new LED lights in one room rather than in every room of your house to see if they are something you can live with. This is going to help you save money if you don’t like something, aren’t comfortable with it or don’t actually want to make that kind of investment without first trying something on for size. And that’s what’s going to make your life a bit easier and more simplistic. You can try things out for minimal cost before you make a full on commitment, and that’s what makes your life a bit more enjoyable and a bit more fun.
Think about It
Never make a snap decision about your finances without first thinking them through and making decisions that are rational and educated. For example, why not take a day or so to think through major decisions. Make a list of pros and cons and then go ahead and make a final decision once your time is up and you are capable of making a more informed decision. This is a smart move for any financial change you want to make, whether it is big or small or somewhere in between. Go ahead and make the decision to wait it out and weigh your options, think it through and see how you feel about it in the morning. Sometimes sleeping on something can make or break your final decision as to whether or not you really want to go through with it in the long run.
Never Rely on One Type of Advice
This goes hand-in-hand with the financial decisions you need second opinions on, and it’s a good concept. For example, if you tend to get your financial advice only on the internet, try something else in addition to that. Why not make an effort to ask for opinions elsewhere, such as in person with a financial advisor or with someone you know works in the financial sector. Get advice from books written by professionals and online. Go both ways. Get your advice from numerous locations and numerous people to help ensure that you’re getting the bigger picture. What you read online might be motivational and helpful, but there might be a small tip or trick that you learn from a book or the advice of a financial advisor that really makes it obvious what you need to go and where you need to go with your decisions.
Don’t Believe it All
One of the most important strategies around is this; do not believe everything you read or hear. For example, what works for one person in their financial lives for great success might not work for you. Someone’s idea of a great investment plan might make them millions, but it might not work for you because you are not in the same financial situation, the same market or whatever else. Just remember that you cannot believe that everything you read or hear is going to help you make better financial decisions. You have to take what you hear, think about it, apply it to your life and finances and then weigh the pros and cons, the outcomes and the possibilities before you make any final decisions.
Protect yourself from bad investments and advice by taking these strategies into consideration. Your financial future depends on so much more than one decision, one article or one moment in your life, so go ahead and be wise.
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