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Back to basics

on Wed, 04/04/2012 - 08:57

I had a few meetings lately with some referrals from my clients, thanks to them :) But I found that people are not having the basic idea of how to build a sound financial plan. Of course, I can understand that investment is always exciting and interesting, fact that lots of people want to learn (and see) their money grow than the boring "saving" talk. However, they are not seeing how important stability is.

A good advisor should not be showing you what you want but the best solution for you. Financial stability start with all the financial building blocks: budgeting, saving and risk managing. Check this special section from Globe and Mail, you will see "investing" is not there yet.

I think everybody needs to come back to the basics of financial planning, no matter how much you know, it is about how well you are performing. Knowledge in your head always help, but having the knowledge without implementation is not good. Implementing a plan needs the discipline and the consistency to keep it going. Lastly, you need to realize that doing what you have been doing is not going to change any outcome if you are not happy with where you are (Oh, I think someone named Albert Einstein defined that as "Insanity"? LOL)

I have mentioned a lot of times that no advisor can do magic, a lot of ways we utilize are ways that we KNOW that work for people. And again, nothing is rocket science. Is always a matter of implementation and human behaviour. If you know what you need to change and you have not changed it, having someone working with you to try to achieve that usually works. That is because now you feel someone is there as your support. When you encounter any problems or anything you think it will affect your plan, it is always good to have someone to give you  an outsider view. A financial advisor is someone that can give you advises that suits you the most, in your best interest. Please do not expect all your financial advisor does is to make more money for you, at least I would not be the one.

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