This article is a 5 min read.
…Another 5 Lies Keeping you from Full Financial Empowerment
When it comes to our financial health, we’re often our own worst enemy. We recently shared 5 lies that keep us trapped on the hamster wheel of life. Unfortunately, there are a lot more where those came from.
Read on to come face to face with these lies – and banish them from your psyche forever.
LIE #1:
I have time to start investing when I’m older.
THE TRUTH:
It is most beneficial to start investing at a younger age due to the mathematical magic of “compounding” and “exponential growth”: both of which utilise the magic bean called time. An early start date, and consistent sums, give greater benefit than one lump sum later.
YOUR ACTION:
If you currently earn a salary, you are likely saving a current portion of it. Your new action is to now, this week, also invest a portion of it. You can try our Boutique Portfolio Management for a hand holding, custom experience in starting to invest – or you can look at the over 50 mutual funds offered by local T&T institutions (many have “almost no savings” starting amount requirements).
This is a doable “this week” (today!) action. Just commit to it.
LIE #2:
You need to be good with numbers and become an expert to start investing.
THE TRUTH:
You need to seek out a competent financial advisor and maintain open lines of communication with them to assure yourself of their expertise. What you don’t need is to be an expert. Firstly, you do not become an expert before doing something as expertise is gained in the experience. Secondly, we go through our lives depending on the expertise of others – our doctors, mechanics, lawyers, teachers – and financial professionals are no different.
YOUR ACTION:
Avoid the unfortunate consequence of this lie which promotes inaction, and find a local financial advisor to speak to about your plans. Engage in a course of life-long learning which works in tandem with your actual investment choices.
LIE #3:
Getting out of debt is more important than investing
THE TRUTH:
Pay yourself first. That’s it. That’s non-negotiable.
YOUR ACTION:
Prioritise yourself before everything else. Your future comes before the credit card company. This is not a suggestion to stay in debt or not meet your obligations. It is a request to re-focus your priorities for your own benefit first.
LIE #4:
#YOLO #CARPE DIEM
THE TRUTH:
If you’re so blessed, you’ll live a long life. Will you be able to seize the day in your 70s as happily as you did in your 30s? “You only live once” and “seize the day” are positive phrases but too often they are misappropriated as excuses to spend profligately with no plan for the future.
YOUR ACTION:
Don’t disappoint Future You. Focus your expenses on Needs and Loves; don’t waste money on Likes and Wants. Needs are essential items, and Loves speak to our passions. If you miss out on either, it should have a deleterious effect on the quality of your life in the long term. What’s the expense ratio of your Needs & Loves to Likes & Wants?
LIE #5:
All slam dunk investments are exhausted - what’s the point anymore?
THE TRUTH:
The potential for wealth creation cannot be exhausted; it is a never-ending well from which we all can dip. There will be other initial public offerings which give you the chance to ride a business wave all the way to the top, but well-performing stocks such as Microsoft and FIRST remain available for investment. The persistent (and incorrect) belief that investing is unreasonably risky is driven by the also incorrect belief that investing is a “get rich quick” scheme.
YOUR ACTION:
Change your mindset. Prudent investing is a long-term endeavour that must withstand market and personal life cycles. The only way for you to be left behind is if you do nothing.
If you’ve believed or acted on any of these lies,
the most important favour you can do for yourself right now
is to stop believing it.
Stop acting based on it. You may even find that some of these statements contradict themselves – well that’s what lies do. Once you recognise that, you’re on your way to the truth.
We could write lengthy chapters about these lies and their truths, but have chosen instead to condense the essentials into this article format.
However, we welcome discussing these (and more) in greater detail so contact us directly.
We want to talk to you.
4 Comments
I am swamped with debt and i have made many bad choices i am in a place where i could really do with some finincal discipline and guidance
Hi Christopher, we’ll email you soon. Have a great weekend.
I have made a lot of mistakes, but where are some of the best financial institution in trinidad and tobago to invest, and in what accounts.
Hi Brent, T&T has a constantly growing and high quality investment market. For example, there are more than 50 regulated local mutual funds to choose from. While we don’t know what money experiences you’ve gone through, acknowledging that mistakes were made and committing to chart a different course is a great victory. Never underestimate the importance of willpower. We’ll be in touch!