“Advice is something you ask for when you secretly already know the answer.” – Mike Rowe
What should I do with my money? It’s something we’d all like an answer to and as financial advisor, I hear this all the time. The truth is, however, there’s no one size fits all solution to the question. At least not one that’s simple enough to a) understand and b) easily accomplish.
You might boast about the money you make or your position in the financial market but in the back of your mind, you wonder if there’s a solution that’s better. You know that what you do with your finances is not a decision to be taken lightly, and it’s not just you either. People are hesitant to make a decision with 71% of millennials who would rather go to the dentist than listen to what the banks are saying (Millennial Distribution Index, 2013).
So, what should you do with your money? I’d like to leave you with the answer I give to anyone who asks me this question.
1. Figure out what you want
Do you want to get married? Have kids? Start a business? Travel to a different country every year? Give back to the community? Or retire comfortably? When you close your eyes and think about it, what’s the first thing that comes to your mind you would like to do or accomplish?
2. Figure out what you don’t want
Are you okay losing money in the financial market? Are you okay paying interest to a bank or 3rd party? Are you okay paying out of your savings account? Are you okay leaving your loved ones with a tax bill if you die? What is it that gets you fired up, angry or scared? Think about what is it that keeps you up at night.
3. Find a financial advisor who aligns with your values
Every financial advisor has a bias. Sure, we’re all required to offer certain products like disability and critical illness insurance for example, but our expertise in financial strategies or our target clients may differ. Find the advisor who you can relate to, the advisor who can challenge you, and the advisor who is in it for the long haul.
As a millennial myself, I think the reason we’re no longer listening to what the banks are saying is because the advice no longer aligns with our values about money. If you agree with this, the most important thing to know is that there are other options out there!
As you discover your answers to the first 2 points mentioned, I hope you find clarity in your values, and find the financial advisor, strategy, or product that works for you.