“Lessons in life will be repeated until they are learned.” Frank Sonnenberg
We face many forks in the road. One of those frequent forks that has great bearing on our livelihood is the “do-it-yourself” or “hire-someone” decisions. Some are obvious. Would we perform our own root canal? Heart surgery? Would we build our own home? Would we be our own lawyer if the stakes were high?
Others may go the other way. Would we consider mowing our own lawn? Cooking dinner? Fixing a broken door hinge? Of course we might give those a try.
Where does financial planning fit? Is it in the no-way-Jose category? Is it in the maybe-I’ll-dabble category? Is it really a side business? Does it require expertise? Are the consequences, both positive and negative, dire? Are there significant ramifications?
YES. There are many. Here are a few key ones:
Not having a WRITTEN Financial Plan leads to low levels of……well, everything.
Countless independent studies have been done comparing those with written plans and those without them. The findings are conclusive. Better outcomes are found across the board. What are these better outcomes that we desire? How about:
Higher levels of peace of mind are achieved.
Goals are set and more successfully reached.
Smarter decisions are made.
Mistakes are greatly reduced.
Areas for improvement are identified.
Confidence is increased.
Risks to our family and lifestyle are identified.
Accountability yields progress.
In theory, we “could” do a plan ourselves. But, will we? The overwhelming odds are….no.
We will waste valuable TIME.
Our time is precious. Should we spend our time on countless “do-it-yourself” activities? Should we do this in industries and professions outside of our knowledge and expertise?
Time is the most valuable resource. We only have so much to spend. We don’t get any re-dos. Wouldn’t we choose to do what we do best? Wouldn’t we choose to make our contribution to humanity in our field of expertise and study? And then, we would spend our remaining hours making a difference with our families and in our communities.
Isn’t that what most people want? Is do-it-yourself planning where you want to spend your time?
There are many more reasons, almost too many to count.
We will end up with less MONEY (for a large host of reasons).
We will lack independent counsel for our financial marriage and families.
We will make MISTAKES that were avoidable.
We will build inefficient portfolios and make investment errors.
We will give in to temptation and lack discipline and patience.
Can you be the person who avoids all these landmines? Can you be the one who beats the odds?
Theoretically possible? Yes. Realistically probable? Not a chance.
All of these mistakes are avoidable. A good financial experience is very possible. In fact, highly probable. But, not likely if you choose to swim alone in the choppy waters.
“Too many small mistakes will make it one big mistake.” Anonymous
