Why you should stop comparing your financial situation to your friends?
Too often we hear from clients “I heard from my friend at a BBQ that…..” and what usually follows is doubt and uncertainty around their own portfolio based on the unsolicited advice from a friend.
What sort of advice are we talking about? The sort of advice that only applies to that one person. Why do we discourage this? Every single person’s financial portfolio is tailored and suited to them. Our clients plans are specific to their circumstances, their needs, their objectives and their personal situations. That means it would not be suited to the next person.
Chances are, the advice you received from that friend, we’ve already considered it! We have eyes all over the financial world and there would be little we didn’t already know. We also keep our ears out for changes and your Adviser Rachael frequents Professional Development Days keeping in the loop with what’s new, what’s changing and what may affect you. We invite our clients to review their portfolio once a year because we know how frequently this industry changes. We know too that your personal circumstances change and what we implemented a year ago may no longer be beneficial to you.
Unsplash - Anna Spratt
Business Insider listed some additional insight into why you shouldn’t compare:
1. Your friends could be making poor choices
What makes your friends financial advice more substantial and important than what you’ve already got in place? Does your friend have a Financial Planner? Also consider their job, income, assets, liabilities. Not the same right?
2. You’ll end up living someone else’s life
Listening to your friends is okay and we’re not expecting you to stop having chats about financial matters. Just be open that your portfolio is yours and yours only.
3. Everyone has different priorities
What stage of life are you at? Is your friend at that same level as you? This can make a huge difference to the portfolio and plans in place.
We’re not completely disregarding what your friend has heard or the information they’re offering, we’re just saying it might not be for you. We encourage you to always ring us and check but to not be discouraged or nervous about thinking you’ve missed out on something.
If you've heard something from a friend that you're unsure is relevant to you, or you just want to chat about your financial situation, please give us a call (07 3211 8600) or send us an email (firstname.lastname@example.org).