Over 20 years of observation has led me to conclude that big mistakes are made when buying financial products. Mistakes that wouldn’t be made buying other products. Mistakes that can turn out to be very costly. The mistake is best described by asking a question which is not directly financial.
What would you say to someone who was buying house furniture, curtains for windows and bathroom accessories without having bought or maybe built the house they want to live in?
Would terms like stupid, silly, naive, or bonkers come to mind? You’d be wanting to say to them – hang on, build the house first, you don’t know the size of the rooms, the dimensions of the window the kind of bathroom you’ll have. You and I would look with amazement at a young couple who had bought the curtains, the dining suite, the carpets and lamp shades but had no idea what kind of house they were going to live in.
I have encountered countless people who have brought me carrier bags full of information regarding their financial products with a quizzical expression on their faces saying: “We’have all these products we’ve bought (or have been sold to us), but we don’t know why we’ve got them or what they will do for us!”
The correct order of things when buying a dining table or curtains is to sort out the house first, work on the plan, get the architect in, make sure the foundation is solid, know what you’ll need to make the house a home. The same is true when constructing your financial building. Get the plan sorted, get the preparation done, figure out what you want to achieve financially and the buy the appropriate financial products! Makes sense doesn’t it?
Contact us for a free guide to getting this right, it could save you a lot of money and time. It could keep you from being one of those people who make costly financial mistakes.