The most common question I get from potential financial clients is, in so many words, "What makes you an expert?" It's a great question, and one you should ask of anyone speaking into your financial life. You simply want to know if this "expert" is going to be a good resource for you and will improve your life. So, ask away.
Perhaps surprising to some, my response to this usually does not include references to the schools I went to, the degrees or licenses I hold, or the initials after my name. Instead, I attempt to quickly and articulately tell them something very simple...there are no experts but I can tell you what I believe.
What I Believe - Four Financial Facts
1. You MUST know how much you spend and on what.
-Listen, whether you earn $20,000 a year or $200,000, knowing where your money is going gives you control.
2. You MUST develop a plan.
-Most people spend more time planning for a vacation than planning for their entire financial life. My favorite quote about the importance of planning:
"If you don't know where you're going, you might end up somewhere else." -Yogi Berra
3. You MUST pay yourself first. (After tithing, of course.)
-Save 10-20% of your earnings consistently before other expenses. Unable to? You are living beyond your means.
4. Nobody knows.
-Since nobody really knows what the future holds, focus on what you CAN control: spending and saving.
Finally, I tell them something else that shocks them. I express to them that I don't manage their money. I'm not smart enough for that. Don't misunderstand...I'm brilliant. But no one person is smart enough to manage your money. You need (and deserve) lots of smart people managing your money. That's what mutual funds are for. So, I tell people that I don't manage their money. Instead, I help them manage their habits, providing discipline and guidance when needed most.
Thanks for reading.
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