Financial advice that most people don’t want to hear.. Get to know it
Getting advice is one of the most important steps when making important financial decisions, but many refuse to listen to advice that contradicts their convictions, which leads to problems in money management.
In a report published byBusiness Insider(Business Insider) Writer Catherine McLaughlin reviews top financial advice that most people don’t want to work with, according to financial advisor Misty Lynch.
Certified financial planner Misty Lynch says that “the budget is the most important thing” for controlling finances, although many think it is a difficult task because it requires commitment and rigor.
And Lynch adds that budgeting helps manage money and highlights bad financial habits that need to be corrected, and explains in this context that “often, spending habits don’t align with what people say they really care about.”
However, budgeting should not be in the form of a set of instructions that are too strict, but rather a systematic and clear plan for money management, as good planning is the best way to move from your current situation to the one you aspire to.
Do not follow the advice of parents and grandparents
Lynch stresses that most people don’t want to hear advice that contradicts what they’ve heard from their parents, grandparents, or other influential people, but family and family advice may not be appropriate in the current economic situation.
Lynch advises to think carefully about these tips and know their contexts and premises, and then take the appropriate position on them.
Taking a risk isn’t always a smart move
Lynch says she has had many clients who ask her for advice on some of their risky, logical, and risky financial decisions.
Recently, a client asked her if she should quit her job and focus on her side business, Lynch says, “She wanted me to support her in this move, but it’s not the right advice.”
There are often adventurers looking to get into big investments without enough collateral. “They expect me to encourage them, but oftentimes they have bills that they need to pay,” Lynch explains.
Don’t make several important decisions at once
After an important personal life transition, such as moving to a new residence or getting a new job, Lynch advises taking a moment before taking an extra step.
Lynch adds that when people’s lives change drastically, they may feel excited or uncomfortable, both of which often lead to wanting to adjust a lot of other aspects, so “we try to make sure that the things they do are in their best interest, and not just in response to an emergency feeling.”
How do you accept advice that you do not want to hear?
Money management is a very delicate matter, and you may not easily accept financial advice that does not align with your beliefs and desires.
In this case, Lynch recommends writing down ideas and asking yourself questions to find out why you don’t buy into a piece of advice, and then making a decision.
“If you want to confirm an opinion and don’t know if this is the right advice, treat it like a doctor and look for another opinion,” Lynch says.
“Don’t take any step before you realize what you’re doing well, especially if you had no prior idea of it, or weren’t able to explain it to someone else,” she says.